Court allows instalment repayments under the SARFAESI Act, balancing borrower rights and lender interests.

BASANT BALAJI J ======================

W.P.(C) No. 5430 of 2026 ========================

Dated 26th day of February 2026 JUDGMENT The 1st petitioner is the mother of petitioners 2 and 3, and the 4th petitioner is her daughter-in-law. The borrower had availed a housing loan of Rs.8,00,000/- on 25.04.2014, for which the 1st petitioner and her late husband stood as guarantors by mortgaging property situated in Kumaramangalam Village. The borrower had also availed an Agricultural Credit Facility of Rs.11.6 lakhs. The loan instalments were paid regularly till October 2023, but subsequent defaults occurred due to prolonged illness, hospitalization, and financial hardship. Thereafter, the respondents initiated revenue recovery proceedings under the SARFAESI Act , including steps for taking physical possession of the secured asset.

Aggrieved by the said proceedings, the petitioners have approached this Court.

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

3. It was submitted on behalf of the respondent Bank that the petitioners committed default in repayment of the agricultural loan and the present outstanding amount in the said loan as on 13.02.2026 is Rs.17,70,100/- (Rupees Seventeen Lakhs Seventy Thousand One Hundred only). It was 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 instalments. This is recorded.

4. In view of the above, I am of the view that the petitioners can be granted an opportunity to repay the outstanding amount in the agricultural loan on the following conditions:

1. The balance outstanding amount of Rs.17,70,100/-

(Rupees Seventeen Lakhs Seventy Thousand One Hundred only), in the agricultural loan along with accrued interest, costs, and charges, if any, shall be paid in 12 equal monthly instalments starting from 20^th March 2026, and subsequent instalments shall be paid on or before the 20^th day of every succeeding month.

2. In the event of default of any one instalment, the respondent Bank shall be entitled to proceed for recovery, in accordance with the law;

3. All coercive proceedings shall be kept in abeyance to enable the petitioners to repay the entire amount directed above.

The petitioners shall also continue to remit the equated monthly instalments in respect of the housing loan, without committing any default.

The writ petition is disposed of as above.

Sd/-