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2026 Supreme(Online)(Ker) 20828
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
RAJALAKSHMI .M – Appellant
Versus
THE KERALA STATE CO-OPERATIVE BANK (KERALA BANK) – Respondent
WP(C) NO. 10337 OF 2026
For the Appellants/Petitioners: SHRI.K.M.MUHAMMED HUSSAIN
For the Respondents: SRI. K S ARUN KUMAR
The court permits payment of overdue amounts in installments to regularise a loan account under SARFAESI Act, balancing creditor recovery with debtor relief.
Headnote:The writ petition challenges the coercive action taken under the SARFAESI Act, 2002. The petitioner was permitted to clear overdue amounts with interest by installments due to the bank's willingness to accommodate. The Court found that the petitioner should be allowed to remit the overdue amount in installments and determined a course of action to regularise the loan account. The petitioner is directed to remit a sum of Rs.25,000 by 31 March 2026 and the balance in six equal installments commencing April 2026, contingent upon compliance with the terms set by the Court.
| Table of Content |
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| 1. challenge to coercive bank action. (Para 1 , 2) |
| 2. court observes bank's willingness for repayment. (Para 3) |
| 3. directions issued for payment and loan regularisation. (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.1,12,022/- (Rupees One Lakh Twelve Thousand Twenty Two 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.1,12,022/- (Rupees One Lakh Twelve Thousand Twenty 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.25,000/- (Rupees Twenty Five Thousand only) on or before 31st March, 2026 to the bank.
(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest in 6 equal monthly installments starting from the month of April, 2026 and such payments 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 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.
