Court determines structured repayment for overdue loan under SARFAESI Act to avoid possession by the lender.

JUDGMENT

(Dated this the 19^th day of February, 2026)

The petitioners availed a housing loan of Rs.26,25,000/- from the respondent Bank in the year 2018, repayable over a period of 15 years, by mortgaging 2.02 Ares of land comprised in Re-survey No.9/67P of Edakunni Village, Thrissur Taluk, Thrissur District. On default in repayment, the loan account was classified as NPA and the respondent initiated proceedings under the SARFAESI Act , issuing a possession notice dated 28.08.2025 under Section 13(4) of the Act proposing to take physical possession of the secured asset. The petitioner is challenging proceedings under the SARFAESI Act initiated by the respondent Bank for recovery of the amounts due.

2. The learned Standing Counsel appearing for the respondents, on instructions, submits that as on today, the total overdue amount comes to Rs.3,88,698/- (Rupees Three Lakh Eighty Eight Thousand Six Hundred Ninety Eight Only) after the remittance of the amount of Rs.1,00,000/- as ordered on 06.01.2026.

3. The counsel for the petitioner seeks an indulgence from this court to grant installments to wipe off the overdue amount. The respondent Bank is willing to accept repayment of overdue amount in limited installments. This is recorded.

4. Having heard the counsel appearing for the petitioner as well as the Standing counsel appearing for the respondent bank, I deem it appropriate to dispose of the writ petition with the following directions:

(i) The petitioner shall pay the overdue amount of Rs.3,88,698/- (Rupees Three Lakh Eighty Eight Thousand Six Hundred Ninety Eight Only) along with any accrued interest, cost and allied charges, in six equal monthly installments, along with regular installments.

(ii) The first installment is to be paid on or before 15.03.2026, and the remaining installments on or before the 15^th day of each succeeding month, along with regular installments.

(iii) After making payment of the entire overdue amount along with regular installments, the petitioner shall continue to pay the regular installments till the entire loan liability is discharged.

(iv) In case of failure to make payment of the installments as directed above, the Bank shall be free to take possession of the secured assets, in accordance with law.

(v) Till such time, all coercive proceedings against the secured assets shall be deferred.

Sd/-