Loan repayment restructuring due to financial hardship is permissible, allowing installment payments.

BASANT BALAJI, J.

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W.P.(C) No.37750 of 2025 -----------------------------------------------

Dated this the 30^th day of January, 2026 J U D G M E N T The petitioners availed a loan of Rs.30,00,000/- from the 1^st respondent in 2016, secured by the creation of a Gehan under Kerala State Co-operatve Societies Act, 1969, over a property in Ulloor Village, Thiruvananthapuram. The petitioners, who operate small scale businesses from the mortgaged premises have been remitting installments regularly until 2018. The 2^nd petitioner, aged 91, was bedridden and the 1^st petitioner suffered a severe accident in 2019, which limited his mobility and ability to manage business operations, causing financial strain. The COVID pandemic further exacerbated their financial difficulties, leading to irregular loan repayments despite earnest efforts to regularize the account. Hence, the petitioners have approached this Court for a direction to the respondents to regularise the loan account by permitting the petitioners to pay the overdue amount in installments.

2. It is submitted that the 2^nd petitioner is no more and seeks time to implead the legal heirs. Since the limited request is only for installments, impleadment of the legal heir of the 2^nd petitioner is not required.

3. The learned Standing Counsel for the respondents, on instructions, submits that the total outstanding amount as on 14.01.2026 is Rs.19,45,931/-, after deducting the amount already remitted pursuant to the direction issued by this Court on 14.11.2025 and the payment thereafter. The respondents are willing to permit the petitioners to pay off the outstanding amount in ten equated monthly installments.

4. Having heard the learned counsel on both sides, and the fact that the respondents have no objection in granting installment facility to the petitioners, I dispose of the writ petition as follows:

a) The petitioners shall remit the outstanding amount of Rs.19,45,931/- (Rupees Nineteen lakhs forty five thousand nine hundred and thirty one only) together with allied interest and other charges, in ten (10) equated monthly installments, starting from 20.02.2026 and the subsequent installments shall be paid on or before 20^th of every succeeding months.

b) In the event of default of any one installment, the respondents shall be entitled to proceed in accordance with law.

c) All coercive proceedings shall be kept in abeyance to enable the petitioners to repay the entire amount as directed above.

Sd/-

BASANT BALAJI, JUDGE.