The court established principles of loan repayment arrangements under the SARFAESI Act in respect of overdue payments.

JUDGMENT

(Dated this the 27^th day of February, 2026)

The petitioner has availed three different loans (Housing Loan – Rs. 25,00,000/-, Covid Loan – Rs. 4,00,000/- and MSME Loan – Rs. 2,00,000/-) amounting to a total of Rs. 31,00,000/- (Rs. Thirty- one Lakhs) from 2017 onwards from the 2^nd respondent Bank. For availing the said loans, the petitioner had mortgaged all part and parcel of the land, having an extent of 3.24 Ares and 3.49 Ares along with all other improvements thereon, comprised in Survey No. 331/1 and 331/8 respectively in Vallivattom Village, Mukundapuram Taluk, Thrissur District, as security for the above loan transactions. When there was default in repayment, the bank initiated proceedings under the SARFAESI Act .

2. The learned Standing Counsel appearing for the respondents, on instructions, submits that as on today, the total overdue amount comes to Rs.3,42,277/-.

3. The counsel for the petitioner submits that the petitioner had complied with the order dated 22.01.2026 and now, 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.3,42,277/- (Rupees three lakh forty two thousand two hundred seventy seven only) along with any accrued interest, cost and allied charges, in 10 equal monthly installments, along with regular installments.

(ii) The first installment is to be paid on or before 27.03.2026, and the remaining installments on or before the 27^th day of every succeeding months, 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 entitled to proceed for recovery, in accordance with law.

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

Sd/-