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2026 Supreme(Online)(Ker) 20807
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
ARYA ASHOKAN – Appellant
Versus
AXIS BANK – Respondent
WP(C) NO. 5190 OF 2026
For the Appellants/Petitioners: SRI.GEORGE ABRAHAM PACHAYIL, SMT.O.K.DEEPAMOL, SMT.BIJI JOZLET GEORGE, SHRI.ALEN VARGHESE KURIAN, SHRI.LINUMON M. MATHEW
For the Respondents: SHRI.P.PAULOCHAN ANTONY, SHRI.SREEJITH K., SHRI. G.VISWANATHAN
The court affirmed the right to regularize loan accounts through installment payments under conditions set by the bank.
Headnote:This writ petition was preferred against the coercive actions under the SARFAESI Act. The respondents agreed to permit the petitioner to clear dues of Rs.3,54,300/- in installments. The Court allowed the petition under certain conditions. The key issues included the recognition of rights to regularize the loan account and payment structuring with the bank. The decision emphasized the importance of compliance with payment terms set forth to avoid coercive actions, stating: 'the bank will be at liberty to continue with the coercive steps already taken.'
| Table of Content |
|---|
| 1. basis for writ petition under sarfaesi. (Para 1 , 2) |
| 2. opportunity granted to clear dues. (Para 3) |
| 3. conditions for regularization and implications of non-compliance. (Para 4) |
P.V. BALAKRISHNAN, J.
….....................................
…........................................................... Dated this the 19th day of March, 2026 JUDGMENT 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 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 today is Rs.3,54,300/- (Rupees Three Lakhs Fifty Four Thousand Three Hundred only).
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 clear the overdue amount of Rs.3,54,300/- (Rupees Three Lakhs Fifty Four Thousand Three Hundred 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 the entire overdue amount with interest, in 8 equal monthly installments starting from the month of April, 2026 and such payments shall be made on or before 25th of every month.
(ii) The petitioner shall also continue to pay the regular EMIs/Installments along with the installments as directed afore.
(iii) 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.
