Bank procedures for loan recovery under the SARFAESI Act permit installment repayments post-default under specified conditions.

JUDGMENT

Dated this the 31^st day of January, 2026 The petitioners are husband and wife, they had availed credit facilities in the form of CKKCC Non Subvention Crop for total amount of Rs 60,00,000(Rupees Sixty Lakhs only) from the 2^nd respondent bank. The duration for repayment of the loan was 5 years. The petitioner and his wife were remitting the monthly installments up to 01.03.2024. When there was default in repayment the bank initiated proceedings under the SARFAESI Act .

2. The learned counsel for the petitioner would submit that the petitioner may be permitted to clear the liability in installments. 3. It is submitted on behalf of the respondent Bank that the petitioner committed default in repayment of the loan. The petitioner has complied with the interim order though belatedly and the outstanding amount as on today is Rs.60,71,280/- (Rupees sixty lakhs seventy one thousand two hundred eighty only). It is further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent Bank is willing to accept repayment of the outstanding amount in limited installments. This is recorded.

4. In view of the above, I am of the view that the petitioner can be granted an opportunity to repay the outstanding amount on the following conditions:

(i) The petitioner shall pay a lump sum of Rs.10,00,000/- (Rupees ten lakhs only) within two weeks from today (ii) After making the payment of Rs.10,00,000/- as directed above, the petitioner shall pay the remaining outstanding amount in 5 equated monthly installments. (iii) The 1^st installment shall be paid on or before 20.03.2026. The remaining installments shall be paid on or before the 20^th day of every succeeding months.

(iv) In case of failure to make payment of any one of the installments or the lump sum amount as directed above, the bank shall be free to take possession of the secured assets. The bank shall proceed against the petitioner in accordance with law.

(v) Till such time, all coercive proceedings against the secured assets shall be deferred.