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2026 Supreme(Online)(Ker) 19067
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
NAJEENA – Appellant
Versus
THE BRANCH MANAGER, KERALA STATE CO-OPERATIVE BANK – Respondent
WP(C) NO. 7852 OF 2026
For the Appellants/Petitioners: SMT.A.SALINI LAL, SHRI.R.SUNIL KUMAR, SHRI.JINU P. BINU
For the Respondents: SHRI.JOICE GEORGE
Judicial discretion allows for installment payment plans under SARFAESI Act to regularize loan accounts.
Headnote:The writ petition challenges the coercive actions under the SARFAESI Act, 2002, initiated by the respondents. The petitioner seeks an opportunity for installment payment of the overdue loan amount of Rs.3,79,392/-. The Court permitted the petitioner to remit Rs.40,000 initially and then the balance in nine installments. The ruling aimed at regularizing the loan account based on compliance with the payments.
| Table of Content |
|---|
| 1. challenging coercive actions under sarfaesi act (Para 1 , 2) |
| 2. request for installment option (Para 3) |
| 3. court grants installment payment ruling (Para 4 , 5) |
JUDGMENT
Dated this the 16th day of March, 2026 It is aggrieved by the coercive action taken by the respondents 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 respondents.
3. The learned counsel for the petitioner submits that an opportunity may be given to the petitioner to clear the overdue amount in installments.
4. The learned counsel for the respondents 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 it. He also submitted that, the overdue amount as on date, is Rs.3,79,392/- (Rupees Three Lakhs Seventy Nine Thousand Three Hundred and Ninety Two only)
5. 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 clear the overdue amount of Rs.3,79,392/- (Rupees Three Lakhs Seventy Nine Thousand Three Hundred and Ninety Two 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.40,000/-
(Rupees Forty Thousand only) on or before
31st March, 2026 to the bank;
(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest in nine equal monthly installments, commencing from April, 2026, and such installments shall be paid on or before the end 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 respondents 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 nk APPENDIX OF WP(C) NO. 7852 OF 2026 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE ISSUED BY THE 2ND RESPONDENT U/S 13(4) OF THE SARFAESI ACT DATED 13/03/24 Exhibit P2 THE TRUE COPY OF THE JUDGMENT IN W.P(C)
