Structured repayment agreements in loan defaults can prevent recovery actions when mutually agreed upon.

JUDGMENT

(Dated this the 26^th day of February, 2026)

The petitioner availed a loan of 3 lakhs on 5.10.2024 from the respondent Bank by mortgaging their sole property comprising 2.45 Ares situated in Resurvey No. 596/17 of Vattappara Village, Nedumangadu Taluk, Thiruvananthapuram District. When there was default in the loan repayment, the respondent initiated SARFAESI proceedings against the petitioner.

2. The learned Standing Counsel appearing for the respondents, on instructions, submits that as on today, the total overdue amount comes to Rs.80,148/-.

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.80,148/-(Rupees eighty thousand one hundred forty eight only) along with any accrued interest, cost and allied charges, in seven equal monthly installments, along with regular installments.

(ii) The first installment is to be paid on or before 26.03.2026, and the remaining installments on or before the

26^th day of every succeeding months.

(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/-