Back
2026 Supreme(Online)(Ker) 20840
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
SAJITH THALI – Appellant
Versus
KERALA STATE CO-OPERATIVE BANK LTD. – Respondent
WP(C) NO. 10753 OF 2026
For the Appellants/Petitioners: SHRI.ANILKUMAR C.R., SHRI.K.S.KIRAN KRISHNAN
For the Respondents: SRI M SASINDRAN, SC
A borrower may regularize overdue payments under specific conditions despite ongoing coercive actions.
Headnote:This judgment addresses a writ petition concerning coercive action taken under the SARFAESI Act, 2002. The petitioner seeks to regularize overdue payments amounting to Rs.12,45,318/-. The court permits installment payments. The primary issue determined is whether the petitioner can be allowed to regularize the loan account. The court concludes that upon compliance with specified payment conditions, the loan will be regularized, failing which coercive action may resume.
| Table of Content |
|---|
| 1. coercive action and overdue payment regulation. (Para 1 , 2 , 3) |
| 2. court's directives for regularization of loan. (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 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 today is Rs.12,45,318/- (Rupees Twelve Lakhs Forty Five Thousand Three Hundred Eighteen 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.12,45,318/- (Rupees Twelve Lakhs Forty Five Thousand Three Hundred Eighteen 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.2 lakhs (Rupees Two Lakhs 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 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 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.
