The court affirmed the right to defer possession pending payment in a mortgage dispute, balancing borrower and lender interests.

JUDGMENT

(Dated this the 31st day of January, 2026)

The 3^rd respondent had availed a loan from the 2^nd respondent bank by mortgaging the property. Pursuant to SARFAESI proceedings, an Advocate Commissioner was appointed by the Chief Judicial Magistrate, Manjeri, who attempted to take physical possession on 17.12.2025. On the 3^rd respondent’s request, the bank agreed to defer possession on payment of Rs.3,00,000/- within 24 hours, which amount was borrowed from the petitioner and paid on 18.12.2025, whereupon possession was deferred. As the 3^rd respondent failed to repay the said amount, it was agreed to transfer the property to the petitioner at Rs.1,50,000/- per cent, treating Rs.3,00,000/- as advance sale consideration under Ext.P2. The 3^rd respondent has now informed that a fresh notice has been issued to take possession on 09.01.2026, and if possession is taken, the property cannot be transferred to the petitioner, causing irreparable loss to the petitioner. Aggrieved by the same, the petitioner filed this writ petition.

2. The learned Standing Counsel for the Bank, on instructions, submits that the overdue amount as on date is Rs.21,85,081/-. The Bank has no objection in regularizing the loan account.

3. 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 pay a lumpsum amount of Rs.1,85,081/- (Rupees one lakh eighty five thousand and eighty one only) on or before 20.02.2026.

b) After making the payment of Rs.1,85,081/- as directed above, the petitioner shall pay the remaining overdue amount in five equal monthly installments.

c) The first installment is to be paid on or before

20.03.2026, and the remaining four installments on or before the 20^th day of each succeeding month.

d) In case of failure to make payment of the lumpsum amount of Rs.1,85,081/- or any of the installments as directed above, the Bank shall be free to take possession of the secured assets. The Bank shall proceed against the petitioner in accordance with the law to realize its dues.

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

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

Sd/-