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2026 Supreme(Online)(Ker) 20829
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
SHAJI.K.K – Appellant
Versus
THE KERALA STATE CO-OPERATIVE BANK LTD. – Respondent
WP(C) NO. 10363 OF 2026
For the Appellants/Petitioners: SRI.P.S.BINU, SMT.K.SEENA
For the Respondents: SRI P C SASIDHARAN
Petitioner granted opportunity for loan repayment under SARFAESI Act with specified terms for installment payments.
Headnote:The writ petition was filed under the SARFAESI Act concerning coercive action by the respondents. The petitioner was permitted to clear overdue loan amounts, totaling Rs.1,38,522/-, in installments. The court facilitated the regularization of the loan account if the petitioner complied with payment terms. The main considerations revolved around the bank’s willingness to negotiate overdue payments and the court's decision to allow structured repayment in light of existing circumstances.
| Table of Content |
|---|
| 1. coercive action under sarfaesi act (Para 1) |
| 2. counsel discussions regarding repayments (Para 2) |
| 3. petitioner allowed repayment in installments (Para 3) |
| 4. court grants final orders for payment terms (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 17.03.2026 is Rs.1,38,522/- (Rupees One Lakh Thirty Eight Thousand Five Hundred 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.1,38,522/- (Rupees One Lakh Thirty Eight Thousand Five Hundred 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 only) on or before 5th April, 2026 to the bank;
(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest in 9 equal monthly installments starting from the month of May, 2026 and such payments shall be made on or before 3rd 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.
