The Court determined that a defaulting borrower can be granted an opportunity to settle debts through payment plans, balancing lender rights and borrower's obligations.

JUDGMENT

(Dated this the 23^rd day of February, 2026)

The petitioner had availed Agricultural cash credit loan from the respondent bank for an amount of Rs.20,00,000/- in the year 2022, by mortgaging land measuring 4 Ares together with all improvements thereon comprised in Re survey No:259/16(Old Sy No.335/50-34-311) Block No.50 of Kummil Village, Kottarakkara Taluk, Kollam District, 6.50 Ares of property along with all improvements thereon comprised in Re-sy No:265/11- 3(old Sy No.335/50/408) Block 50 of Kummil Village Kottarakkara Taluk Kollam District and 5.15 Ares together with building and all other improvements thereon comprised in Re-Sy No.265/12(Old Sy No:335/50/408), Block No.50 of Kummil Village, Kottarakkara Taluk, Kollam District respectively. When there was default in repayment, the bank initiated proceedings under the SARFAESI Act.

2. The learned counsel for the petitioner would submit that the petitioner may be permitted to clear the liability in installments.

3. It is submitted on behalf of the respondent Bank that the petitioner committed default in repayment of the loan and the outstanding amount of two loans as on 22.01.2026, is Rs.30,17,661/- (Rupees thirty lakhs seventeen thousand six hundred sixty one only). It is 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 outstanding amount in limited installments. This is recorded.

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 direction:

(i) The petitioner shall pay a lump sum of Rs.10,00,000/-

(Rupees ten lakhs only) on or before 31.03.2026.

(ii) After making the payment of Rs.10,00,000/- as directed above, the petitioner shall pay the remaining outstanding amount in 9 equated monthly installments.

(iii) The 1^st installment shall be paid on or before

30.04.2026. The remaining installments shall be paid on or before the 30^th day of every succeeding months.

(iv) In case of failure to make payment of any one of the installments or the lump sum amount as directed above, the bank shall be free to take possession of the secured assets. The bank shall proceed against the petitioner in accordance with law.

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

Sd/-