The court allows loan regularization under agreed repayment terms following default, focusing on cooperative principles.

J U D G M E N T

The petitioner has availed credit facilities from the respondent bank.

On default being committed, proceedings were initiated against the petitioner under the provisions of the Kerala Co-operative Societies Act , 1969, prompting the petitioner to approach this court by filing the above writ petition.

2. During the course of hearing, petitioner has confined the relief to an opportunity for repaying the overdue amount in installments and to obtain regularisation of the loan account.

3. It is submitted on behalf of the respondent bank that the petitioner committed default in repayment and the overdue amount as on 31-01-2026 is Rs.10,21,668/-. 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 overdue amount in limited instalments and regularise the loan account.

4. Heard the learned counsel for the petitioner and the learned counsel for the respondent Bank.

5. Having regard to the facts and circumstances of the case and the submissions made as recorded above and also taking into account the fact that the petitioner has undertaken to clear off the overdue amount along with regular EMIs, I am of the view that the petitioner can be granted an opportunity to clear off the overdue amount in eighteen (18) equal monthly instalments, first of which shall be paid on or before 05-12-2026 and thereafter, if the amount so directed is repaid within the time as directed above, to have the loan account regularised.

6. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.10,21,668/- along with interest, bank charges and costs from the petitioner and regularise the loan account of the petitioner in the following manner:

(i) The overdue amount of Rs.10,21,668/- together with any accrued interest, costs and bank charges shall be repaid in twelve (12) equated monthly instalments;

(ii) The first instalment shall be paid on or before 30-03-2026 and the subsequent instalments shall be paid on or before 30^th day of each succeeding months;

(iii) Petitioner shall continue to pay the regular EMI’s on the due date without fail;

(iv) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with the law;

(v) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.

Sd/-