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2026 Supreme(Online)(Ker) 20832
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
INDU.V.S – Appellant
Versus
THE AUTHORISED OFFICER, THE KERALA STATE CO-OPERATIVE BANK LTD – Respondent
WP(C) NO. 10440 OF 2026
For the Appellants/Petitioners: SRI.S.R.SREEJITH
For the Respondents: SHRI.THOMAS ABRAHAM
Petitioner granted opportunity to regularize loan account by paying overdue amounts in installments.
Headnote:This judgment discusses the applicability of the SARFAESI Act, 2002 in the context of coercive actions taken by a financial institution against a petitioner. It establishes that the petitioner can clear overdue amounts in installments, subsequently regularizing their loan account. The ruling emphasizes the need for timely compliance with payment orders to avoid further coercive measures.
| Table of Content |
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| 1. coercive action under sarfaesi act. (Para 1) |
| 2. opportunity for petitioner to clear dues. (Para 2 , 3) |
P.V. BALAKRISHNAN, J.
….....................................
…........................................................... Dated this the 19th day of March, 2026 JUDGMENT It is aggrieved by the coercive action taken by the respondent 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 respondent.
3. The learned counsel for the respondent 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 16.03.2026 is Rs.4,00,805/- (Rupees Four Lakhs Eight Hundred Five only). 4. Hence, considering the submissions made by the learned counsel for the respondent 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.4,00,805/- (Rupees Four Lakhs Eight Hundred Five 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.1 lakh (Rupees One Lakh only) on or before 5th April, 2026 to the bank.
(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest in 12 equal monthly installments starting from the month of May, 2026 and such payments shall be made on or before 10th 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 respondent 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.
