A borrower has the right to seek regularization of a loan account upon meeting specified repayment conditions even after defaulting.

BASANT BALAJI J ======================

W.P.(C) No. 46031 of 2025 ========================

Dated 20^th day of February, 2026 JUDGMENT The petitioner had availed a housing loan in the year 2021 for an amount of ₹8,00,000/- (Rupees Eight Lakh only) from the respondent Bank by mortgaging 10 cents of land along with the residential house situated thereon. Subsequently, the petitioner committed default in repayment of the loan amount as per the agreed terms. In view of the said default, the respondent Bank initiated recovery proceedings against the secured asset under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002. Aggrieved by the measures so initiated by the respondent Bank under the said Act, the petitioner has approached this Court by filing the present writ petition.

2. During the hearing, the petitioner confined the relief to an opportunity to repay the overdue amount in instalments and to obtain regularisation of the loan accounts.

3. It was submitted on behalf of the respondent Bank that the petitioner committed default in repayment of the housing loan, and the total overdue amount as on 20.02.2026 is Rs.2,53,896/- (Rupees Two Lakhs Fifty Three Thousand Eight Hundred and Ninety Six Only). It was further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent Bank is willing to accept repayment of the overdue amount in limited instalments and regularise the loan accounts. This is recorded.

4. The petitioner has complied with the order dated 15.01.2026. Given the above, the petitioner can be granted an opportunity to repay the total overdue amount on the following conditions, and if they are met, to have the loan accounts regularised.

1. The balance overdue amount, Rs.2,53,896/- (Rupees Two Lakhs Fifty Three Thousand Eight Hundred and Ninety Six Only) along with any accrued interest, costs and charges, shall be paid in 12 equal monthly instalments starting from 20^th March 2026 and subsequent instalments shall be paid on or before 20^th of every succeeding months.

2. Petitioner shall continue to pay the regular EMIs/instalments along with the instalments directed above.

3. In the event of default of any one instalment, the respondent Bank shall be entitled to proceed for recovery, in accordance with the law;

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

The writ petition is disposed of as above.

Sd/-