The court upholds the right to regularize a housing loan and outlines repayment terms while suspending coercive recovery.

JUDGMENT

Dated this the 23^rd day of February, 2026 The petitioner availed a housing loan from the respondent-Bank for a sum of Rs.13,00,000/-. Since there was default in repayment, the loan was declared as NPA and the respondents issued notice under Section 13(2) of the SARFAESI Act dated 02.05.2025 for clearing the outstanding liability.

2. The learned Standing Counsel for the Bank, on instructions, submits that the overdue amount as on date is Rs.3,28,000/- 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 remit the overdue amount of Rs.3,28,000/- together with any accrued interest, costs and allied charges, in six equated monthly installments, starting from 15.3.2026 and the subsequent installments shall be paid on or before 15^th of every succeeding month.

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 for recovery 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