The court affirmed that protections against coercive actions under the SARFAESI Act can be granted if the debtor agrees to a repayment plan.

JUDGMENT

(Dated this the 27th day of January, 2026)

The petitioner availed two loans from the 2^nd respondent bank, one cash credit facility and other housing loan. Due to non-repayment of the loan amount, the respondent initiated proceedings under the SARFAESI Act , 2002, by issuing Ext.P1 notice dated 03.05.2025. Aggrieved by the same, the petitioner filed this writ petition.

2. The learned Standing Counsel for the Bank, on instructions, submits that an amount of Rs.13 lakhs is outstanding in the cash credit facility. As far as the housing loan is concerned, overdue amount as on date is Rs.12 lakhs. The learned counsel further submits that since the cash credit has to be closed within a period of one month, if the same is done, the housing loan can be regularised.

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 outstanding amount of Rs.13,00,000/- (Rupees thirteen lakhs only) in the cash credit facility, together with any accrued interest, cost and allied charges, in two equated monthly installments. The first instalment on 20.02.2026 and the second on

20.03.2026.

b) The petitioner shall remit the overdue amount of Rs.12,00,000/- (Rupees twelve lakhs only) in respect of housing loan, together with any accrued interest, cost and allied charges, in six (6) equated monthly installments, starting from 20.02.2026 and the subsequent installments shall be paid on or before 20^th of every succeeding months.

c) The petitioner shall continue to pay the regular EMIs/installments along with the installments as directed above.

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

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

Sd/-