The court upheld the discretion of financial institutions to recover dues while providing a structured payment plan for borrowers in default.

JUDGMENT

(Dated this the 20th day of February, 2026)

The petitioner along with his wife availed a loan of Rs.5,00,000/- from the respondent bank. Due to non- repayment of the loan amount, the respondent initiated proceedings under the SARFAESI Act , 2002, by issuing Ext.P1 notice dated 05.11.2025, followed by Ext.P2 proclamation notice issued by the 2^nd respondent in the local daily. Aggrieved by the same, the petitioner filed this writ petition.

2. The learned Standing Counsel for the Bank, on instructions, submits that the overdue amount as on date is Rs.6,70,421/-. 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.6,70,421 /- (Rupees six lakhs seventy thousand four hundred and twenty one only) together with any accrued interest, cost and allied charges, in twelve (12) equated monthly installments, starting from 15.03.2026 and the subsequent installments shall be paid on or before 15^th of every succeeding months.

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