Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(Ker) 10133

IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J
SHIBURAJ V G – Appellant
Versus
THE AUTHORIZED OFFICER, DCB BANK LTD. – Respondent
WP(C) NO. 48280 OF 2025

Advocates:
For the Appellants/Petitioners: K.P. Madhu, Aparna S., Maria George, Anu Johny
For the Respondents: B.S. Suresh Kumar, Ashley John, Ranjana V., Anusree C.S., Jaison Mathew, Savio Binoy Correya

Court allows borrower to repay overdue mortgage loan in installments while ensuring compliance with legal provisions.

Headnote:The SARFAESI Act, 2002 governs the proceedings initiated by banks for recovery of dues. The petitioner availed a mortgage loan, defaulted payment, and faced possession proceedings. The Court recognized the Bank's willingness to regularize the loan, stating that the petitioner must remit the dues in equated installments. The key issues included interim relief and the legality of the proceedings under the Act. The Court emphasized the importance of compliance in its ratio decidendi. The final order allows the petitioner to repay overdue amounts in ten installments while maintaining regular payments.

Table of Content
1. default status and proceedings initiated. (Para 1 , 2 , 3)
2. court order on payment structure. (Para 4)

JUDGMENT

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

The petitioner availed a mortgage loan of Rs.10 lakhs from the respondent bank. Due to non-repayment of the loan amount, the respondent initiated proceedings under the SARFAESI Act , 2002, by issuing Ext.P1 notice dated 14.07.2025 and followed by notice dated 05.12.2025 issued by the Advocate Commissioner intimating that the physical possession of the property would be taken. Aggrieved by the same, the petitioner filed this writ petition.

2. On 19.12.2025, this Court granted an interim order deferring the coercive steps against the petitioner, on condition that the petitioner shall remit an amount of Rs.1,00,000/- within one month. It is submitted that the said interim order has been complied with.

3. The learned Standing Counsel for the Bank, on instructions, submits that the overdue amount as on date is Rs.3,97,215/-. 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.3,97,215/- (Rupees three lakhs ninety seven thousand two hundred and fifteen 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

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2026 Supreme(Online)(Ker) 10133

IN THE HIGH COURT OF KERALA AT ERNAKULAMBASANT BALAJI, JSHIBURAJ V G – AppellantVersusTHE AUTHORIZED OFFICER, DCB BANK LTD. – RespondentWP(C) NO. 48280 OF 2025

Court allows borrower to repay overdue mortgage loan in installments while ensuring compliance with legal provisions.

IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J
SHIBURAJ V G – Appellant
Versus
THE AUTHORIZED OFFICER, DCB BANK LTD. – Respondent
WP(C) NO. 48280 OF 2025