The court held that a borrower can negotiate repayment terms under the SARFAESI Act upon compliance with specified conditions.

P.V. BALAKRISHNAN, J.

….....................................

…......................................................... Dated this the 9^th day of March, 2026 JUDGMENT The petitioner challenges the proceedings initiated by the respondent Bank 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’), by seeking the following reliefs;

''i) Issue a writ of mandamus or any other appropriate writ, order or direction, commanding the respondents not to initiate any further proceedings on Ext-P3 Notice including sale of the properties having an extent of 10.12 Ares in Sy.No. 509/8-7 in block no. 9 of Neduvathoor Village, Kottarakkara Taluk, Kollam District and 2.02 Ares in Sy.No. 537/8-5 in block no. 8 of Neduvathoor Village, Kottarakkara Taluk, Kollam District, with respect to the loan from the 2nd respondent Bank, and to permit to repay the actual due amount with reasonable interest as atleast

25 installments and regularize the loan;

ii) Issue a writ of mandamus or any other appropriate writ, order or direction, demanding the respondents to furnish the statement of accounts showing the exact amount repayable by the petitioner towards the loan amount.''

2. I have heard the learned counsel for the petitioner and the learned Standing Counsel for the respondents.

3. The learned counsel for the respondents submitted that the total outstanding amount due in the loan account of the petitioner is around Rs.40 lakhs (Rupees Forty Lakhs only) and he has no objection in granting reasonable installments to the petitioner to pay the amount with interest provided he deposits a substantial amount before 19.03.2026.

4. Hence, considering the submissions made by the learned counsel for the respondents and the facts and circumstances of this case, I am of the view that the petitioner can be granted an opportunity to repay the entire outstanding amount of nearly 40 lakhs along with any accrued interest, costs and charges to the bank on the following conditions:

(i) The petitioner is directed to deposit an amount of Rs.4 lakhs (Rupees Four Lakhs only) on or before

19.03.2026.

(ii) Thereafter, the petitioner shall remit the entire balance amount with interest, in 10 equal monthly installments commencing from the month of April 2026 and such remittance shall be made on or before 15^th of every month;

(ii) In case the petitioner fails to comply with the any of the afore conditions, the bank will be at liberty to continue with the proceedings now initiated against him and in case the afore order is complied with no coercive steps shall be taken by the bank against the petitioner.

The writ petition is disposed of as above.

Sd/-