Back
2026 Supreme(Online)(Ker) 20838
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
AJITH KUMAR G.V – Appellant
Versus
THE AREA MANAGER, KERALA BANK – Respondent
WP(C) NO. 10691 OF 2026
For the Appellants/Petitioners: SRI.JUSTINE JACOB, SMT.RADHIKA S.ANIL
For the Respondents: SRI. P C SASIDHARAN
The court grants the petitioner an opportunity to clear overdues under SARFAESI Act through installment payments, pending compliance with specific terms.
Headnote:This judgment addresses a petition related to the coercive actions taken under the SARFAESI Act, requiring the petitioner to clear overdue amounts. The petitioner is allowed to regularise the loan by remitting specified amounts in installments. The court emphasized compliance for regularisation of the loan account. The court stated, 'if the petitioner complies with the above directions, the respondents shall regularise the loan account...'
| Table of Content |
|---|
| 1. coercive action under sarfaesi act. (Para 1) |
| 2. submission of overdraft amount and terms of repayment. (Para 2 , 3) |
| 3. conditions for regularisation of loan account. (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 18.03.2026 is Rs.5,98,893/- (Rupees Five Lakhs Ninety Eight Thousand Eight Hundred Ninety Three 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.5,98,893/- (Rupees Five Lakhs Ninety Eight Thousand Eight Hundred Ninety Three 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 10 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 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.
