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2026 Supreme(Online)(Ker) 8649
IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J
SHABNA SHAMSUDEEN – Appellant
Versus
CANARA BANK – Respondent
WP(C) NO. 2393 OF 2026
For the Appellants/Petitioners: SHRI.A.SANIL KUMAR
For the Respondents: SHRI.M.GOPIKRISHNAN NAMBIAR, SHRI.K.JOHN MATHAI, SRI.JOSON MANAVALAN, SRI.KURYAN THOMAS, SHRI.PAULOSE C. ABRAHAM, SHRI.RAJA KANNAN, SMT.AKHILA NAMBIAR
Court affirms installment payment to prevent coercive recovery under SARFAESI Act while enabling borrower to clear dues.
Headnote:This judgment relates to WP
(C) No. 2393 of 2026 concerning a loan default under the provisions of the SARFAESI Act, 2002. The petitioner availed a loan of Rs. 20,00,000/- from the respondent Bank for business purposes, but defaulted in repayment leading to coercive proceedings. The court finds that the respondent Bank is willing to permit payment in installments. The issues framed include the petitioner’s right to seek relief against coercive recovery processes and the court’s decision to allow payment in twelve monthly installments, affirming that failure to comply would lead to lawful proceedings.
| Table of Content |
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| 1. default and auction proceedings initiated under loan. (Para 1 , 2) |
| 2. court allows installment payments to avoid coercive action. (Para 3) |
JUDGMENT
(Dated this the 6th day of February 2026)
The petitioner availed a loan of Rs.20,00,000/- from the respondent Bank for business purposes. Upon default in repayment, the Bank initiated coercive proceedings under the provisions of the SARFAESI Act , 2002, for recovery of the outstanding dues, and the petitioner was served with an auction sale notice. At that stage, the petitioner approached this Court by filing W.P.(C) No. 44739/2025; however, due to the absence of bidders, the said writ petition was closed. Thereafter, the respondent Bank issued Ext.P2 auction sale notice dated 09.01.2026, intimating that the auction sale of the residential property of the borrower is scheduled to be held on 29.01.2026. Aggrieved by the same, the petitioner has approached this Court.
2. The learned Standing Counsel for the respondents, on instructions, submits that the total outstanding amount is Rs.26,93,000/-. The respondents are willing to permit the petitioners to pay off the outstanding amount in equated monthly installments.
3. Having heard the learned counsel on both sides, and the fact that the respondents have no objection in granting installment facility to the petitioner, I dispose of the writ petition as follows:
a) The petitioner shall remit the outstanding amount of Rs.26,93,000/- (Rupees Twenty six lakhs ninety three thousand only) together with allied interest and other charges, in twelve (12) equated monthly installments, starting from 10.03.2026 and the subsequent installments shall be paid on or before 10th of every succeeding month.
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 petitioner to repay the entire amount as directed above.
SD/-
