A surety may request installment payments for a defaulted loan, provided adequate arrangements are made for compliance.

JUDGMENT DATED THE 30^TH DAY OF JANUARY 2026 The petitioner is the surety of loan of Rs.29,00,000/-

from the respondent-Bank by the borrower Sajitha. The property of the petitioner was even mortgaged for securing the loan. On default of repayment, securitisation proceedings were initiated by the respondent-Bank and possession notice was issued on 06.03.2023.

2. The respondents, thereafter moved a petition under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002 (SARFAESI Act) before the Chief Judicial Magistrate’s Court, Thalassery and the said Court has passed an order appointing an Advocate Commissioner to take physical possession of the secured assets who had issued Ext.P2 notice. The petitioner has requested only for a direction to the respondent-Bank to grant 20 equal monthly installments to pay off the entire amounts due.

3. The respondents, on instructions, submitted that the original borrower had earlier approached this Court by filing three writ petitions namely, W.P.(C) Nos.9853 of 2022, 9907 of 2022 and 8290 of 2023, which were disposed of by a common judgment dated 17.03.2023, relegating the petitioner therein to approach the Debt Recovery Tribunal. It is thereafter that the present writ petition is filed when the Advocate Commissioner issued notice. The loan taken is Kissan Cash Credit in the year 2015 and the same turned into a Non- Performing Asset in the year 2021. The original borrower has already approached the Debt Recovery Tribunal by filing S.A.No.541 of 2024. The outstanding amount as on today is Rs.58,30,265/-, after remitting Rs.10,00,000/- pursuant to the order passed by this Court on 28.10.2025.

4. The counsel for the respondents opposes the prayer for installments and submitted that since Securitisation Application is pending before the Debt Recovery Tribunal, the petitioner or the original borrower can raise all the contentions in the Securitisation Application and therefore, no indulgence can be granted by this Court.

5. Taking note of the fact that the petitioner was directed to remit Rs.10,00,000/- for deferring the physical possession and the petitioner has come forward with a prayer that she will remit the outstanding amount in installments, I deem it appropriate to dispose of the writ petition as follows:

a) The petitioner shall remit the outstanding amount of Rs.58,30,265/- (Rupees Fifty eight lakhs thirty thousand two hundred and sixty five only) together with allied interest and other charges, in eight (8) equated monthly installments, starting from 10.02.2026 and the subsequent installments shall be paid on or before 10^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 Mn APPENDIX OF WP(C) NO. 40078 OF 2025 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE POSSESSION NOTICE ISSUED TO THE PETITIONER, DATED