The court emphasized the balance of rights in enforcing loan repayments under the SARFAESI Act while providing opportunity for borrowers to regularize defaults.

JUDGMENT

(Dated this the 30th day of January, 2026)

The petitioner, a 60 year old senior citizen and a qualified dental surgeon, has availed a housing loan of ₹1,03,50,000/- from the respondent Bank through six separate loan accounts by mortgaging 40.47 ares of land with the residential building and improvements thereon. The petitioner was regularly paying the instalments till March 2024. Thereafter, due to prolonged medical treatment and financial constraints, the petitioner could not remit the instalments, and consequently, the Bank initiated proceedings under Section 13 (2) of the Securitization and Reconstruction of the Financial Assets and Enforcement of Security Interest Act, 2002 (the SARFAESI Act) followed by Ext.P1 notice.

2. Subsequently, the Bank approached the Chief Judicial Magistrate’s Court, Thrissur, by filing C.M.P. No.8966/2025, pursuant to which an Advocate Commissioner was appointed for taking physical possession of the mortgaged assets and issued Ext.P2 notice to the petitioner to vacate the premises within seven days. Aggrieved by the same, the petitioner has approached this Court seeking a mandamus to set aside Ext.P2 and to permit regularisation of the loan accounts by paying the balance overdue amount in instalments.

3. An interim order was passed by this Court on

04.11.2025 directing the petitioner to remit ₹10 lakhs within a period of 45 days as a condition for deferring the physical possession of the property.

4. The learned counsel for the respondent Bank submits that the overdue amount as on date is ₹12,91,757/-. The petitioner seeks 20 instalments to clear off the liability. The learned counsel for the respondent Bank further submits that if the entire overdue amount is paid on or before 31/03/2026, the Bank is willing to regularise the loan accounts. Taking into account that the overdue amount is Rs.12,91,757/- and as the petitioner has already remitted Rs.10 lakhs pursuant to the interim order, I am inclined to grant the petitioner one more opportunity to regularise the loan account by paying the overdue amount mentioned earlier in six equated monthly instalments.

5. 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.12,91,757/- (Rupees twelve lakhs ninety one thousand seven hundred and fifty seven only) 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.

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