The court emphasized the necessity of exhausting statutory remedies before invoking constitutional provisions, reaffirming that interim orders affecting financial institutions must stem from substantial legal justification.

JUDGMENT

Anil K. Narendran, J.

The authorised officer of the Union Bank of India, the respondent in W.P.(C)No.35758 of 2025, has filed this writ appeal, invoking the provisions under Section 5 (i) of the Kerala High Court Act , 1958, challenging the interim orders dated 19.12.2025, 13.01.2026 and 15.01.2026 passed by the learned Single Judge in W.P.(C)No.35758 of 2025, which was one filed by the respondent herein-petitioner, who availed a cash credit loan to the limit of Rs.90,00,000/- on 19.04.2002, for a period of 12 months, subject to renewal; a housing loan for Rs.6,75,000/- on 16.04.2012, for a period of 12 years, which expired in the year 2024; and a vehicle loan for Rs.7,50,000/- on 12.02.2014, for a period of 84 months from the Union Bank of India. On account of default committed by the petitioner in effecting repayment, the accounts were classified as Non-Performing Assets (NPA) on 30.11.2019 and 31.01.2020, respectively, and the bank initiated coercive steps under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002 (SARFAESI Act), by issuing demand notices on 04.12.2019 and 05.02.2020, respectively. In the proceedings initiated under Section 14 of the SARFAESI Act, Ext.P1 notice dated 10.09.2025 was issued by the Advocate Commissioner appointed by the Chief Judicial Magistrate, Kollam in M.C.No.1183 of 2025, vide Ext.P2 order dated 06.08.2025. The petitioner, along with his son, had approached this Court in W.P.(C)No.12457 of 2024, challenging the coercive steps initiated by the bank under the provisions of the SARFAESI Act. The said writ petition was disposed of by Ext.P3 judgment dated 04.04.2024, whereby the petitioners therein were directed to remit the outstanding amount of Rs.1,03,44,640/- in 12 consecutive and equal monthly installments, along with accruing interest and other bank charges, if any, and the first instalment was directed to be paid on or before 04.05.2024. Paragraphs 9 to 11 of Ext.P3 judgment read thus;

“9. The specific case of the petitioners is that the petitioners have been making the repayment and maintaining the loan account initially. The default in repayment of the loan occurred lately due to reasons beyond the control of the petitioners. The petitioners hasve provided substantial security which will safeguard the interest of the Bank.

10. In the facts and circumstances of the case, I am inclined to dispose of the writ petition giving a short and reasonable time to the petitioners to clear off the liability.

11. The writ petition is therefore disposed of with the following directions:

(i) The petitioners shall remit the outstanding amount of Rs.1,03,44,640/- in 12 consecutive and equal monthly instalments along with accruing interest and other Bank charges, if any. First of such instalments shall be paid on or before 04.05.2024.

(ii) If the petitioners commit default in making payments as directed above, the respondents will be at liberty to continue with the coercive proceedings against the petitioners in accordance with law.

(iii) If the petitioners make payments as directed above, coercive proceedings, if any, against the petitioners shall stand deferred.

(iv) If the petitioners make an application for statement of accounts, the respondents shall provide the same.”

2. The document marked as Ext.P4 in W.P.(C)No.35758 of 2025 is a sale agreement dated 29.08.2025 entered i