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2026 Supreme(Online)(Ker) 15279
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
KHADEEJA – Appellant
Versus
KERALA STATE CO-OPERATIVE BANK – Respondent
WP(C) NO. 9311 OF 2026
For the Appellants/Petitioners: SHRI.ADIL.M.H
For the Respondents: SRI. GILBERT GEORGE CORREYA, SC
Court allows petitioner to clear overdue loan with installments under SARFAESI Act terms.
Headnote:In this writ petition, the petitioner challenges the coercive action taken under the SARFAESI Act. The learned counsel for the respondent indicates a willingness to permit the petitioner to regularize the loan account by clearing the dues in installments. The court found it reasonable to allow the petitioner to pay the overdue amount, set terms for repayment in installments and directed that non-compliance would allow the bank to pursue prior coercive actions. Thus, the petitioner is allowed the opportunity to manage their overdue loan.
| Table of Content |
|---|
| 1. coercive action under sarfaesi act challenged. (Para 1) |
| 2. respondent willing to allow payment of dues. (Para 2) |
| 3. court allows installment-based repayment to regularize account. (Para 3 , 4) |
P.V. BALAKRISHNAN, J.
….....................................
…........................................................... Dated this the 10th day of March, 2026 JUDGMENT It is aggrieved by the coercive action taken by the respondent under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the ‘SARFAESI Act' for short), this writ petition has been preferred by the petitioner.
2. Heard the learned counsel for the petitioner and the learned Standing Counsel for the respondent.
3. The learned counsel for the respondent submitted that the bank has no objections in permitting the petitioner to clear the overdues with interest, by way of installments and regularise the loan account since, the same is only beneficial to the bank. He also submitted that the overdue amount as on date, is Rs.17,78,217/- (Rupees Seventeen Lakhs Seventy Eight Thousand Two Hundred Seventeen only).
4. Hence, considering the submissions made by the learned counsel for the respondent and the facts and circumstances of this case, I am of the view that the petitioner can be granted an opportunity to clear the overdue amount of Rs.17,78,217/- (Rupees Seventeen Lakhs Seventy Eight Thousand Two Hundred Seventeen only) with interest, in installments and regularise the account subject to terms.
Accordingly, this writ petition is allowed as follows;
(i) The petitioner shall remit a sum of Rs.1.5 lakh (Rupees One Lakh Fifty Thousand only) on or before
31st March, 2026 to the bank.
(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest in twelve equal monthly installments starting from April, 2026 and such payment shall be made on or before 25th of every month.
(iii) The petitioner shall also continue to pay the regular EMIs/Installments along with the installments as directed afore.
(iv) If the petitioner complies with the above directions, the respondent shall regularise the loan account and in case of failure to pay any of the installments as ordered afore, the bank will be at liberty to continue with the coercive steps already taken.
Sd/-
P.V. BALAKRISHNAN, JUDGE Dxy APPENDIX OF WP(C) NO. 9311 OF 2026 PETITIONER EXHIBITS Exhibit-P1 THE AADHAR CARD OF THE PETITIONER IS PRODUCED HEREWITH AND MARKED AS EXHIBIT-
