The court allows the borrower to repay overdue loan in installments while permitting the lender to resume possession proceedings upon default.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE BASANT BALAJI FRIDAY, THE 30^TH DAY OF JANUARY 2026 / 10TH MAGHA, 1947 WP(C) NO. 46398 OF 2025 PETITIONER:

YOUSUF C.M., AGED 53 YEARS CHETTIYARODATH HOUSE, VALLIKETTU PULLODU, ADAPURAM P.O., NILAMBUR, MALAPPURAM, PIN -

676542 BY ADV SRI.DEEPAK MOHAN RESPONDENT:

KERALA STATE CO-OPERATIVE BANK, NILAMBUR TOWN BRANCH, NILAMBUR, MALAPPURAM, EPRESENTED BY ITS AUTHORIZED OFFICER, PIN -

679329 BY ADV SRI.GILBERT GEORGE CORREYA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.01.2026, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

JUDGMENT DATED THE 30^TH DAY OF JANUARY 2026 The petitioner availed a housing loan from the respondent-Bank for a sum of Rs.10,00,000/- by mortgaging his residential property. Out of the said amount, Rs.8,00,000/- was released to the petitioner as he has not obtained the completion certificate. Since there was default in repayment, the respondent-Bank initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) before the Chief Judicial Magistrate’s Court, Manjeri 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, therefore, has approached this Court for issuing a direction to the respondent Bank to allow him to repay the amount due, in 20 equal monthly installments.

2. On 17.12.2025, an interim order was passed by this Court deferring the coercive steps against the petitioner on condition that the petitioner remits an amount of Rs.1,50,000/- within one month.

3. The learned Standing Counsel for the Bank, on instructions, submits that the overdue amount as on 17.01.2026 is Rs.2,24,038/-. The Bank has no objection in regularizing the loan account.

4. Having heard the learned counsel on both sides, and taking note of the fact that the Bank is proposing to take physical possession of the property and since the Bank has no objection in regularizing the loan account, I deem it appropriate to dispose of this writ petition with the following directions:

a) The petitioner shall remit the overdue amount of Rs.2,24,038/- (Rupees Two lakhs twenty four thousand and thirty eight only) together with any accrued interest, cost and allied 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) The petitioner shall continue to pay the regular EMIs/installments along with the installments as directed above.

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

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

Sd/-

BASANT BALAJI JUDGE