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2026 Supreme(Online)(Ker) 20848
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
SHEENA THOMAS – Appellant
Versus
CSB BANK LTD – Respondent
WP(C) NO. 10946 OF 2026
For the Appellants/Petitioners: SHRI.AJITH M. JIJI
For the Respondents: SRI. P PAULOCHAN ANTONY, SC
The court grants a borrower the opportunity to clear overdue payments under the SARFAESI Act, emphasizing the importance of compliance to avoid further coercive action.
Headnote:This judgment concerns a writ petition under the SARFAESI Act, where the petitioner challenges the coercive measures taken by the respondent bank. The court noted the petitioner's obligations and the overdue amount of Rs.4,13,057, allowing repayment in installments. The primary issue was the petitioner's plea to regularize the loan account on complying with payment terms. The court directed specific payments to be made to avoid further actions from the bank.
| Table of Content |
|---|
| 1. challenging coercive steps under sarfaesi. (Para 1) |
| 2. court hears arguments from both sides. (Para 2) |
| 3. court allows repayment of overdue amounts. (Para 3) |
| 4. defined repayment terms and conditions. (Para 4) |
P.V. BALAKRISHNAN, J.
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W.P.(C)No. 10946 of 2026 ….........................................................
Dated this the 19th day of March 2026 JUDGMENT It is aggrieved by the coercive steps 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 19.03.2026, is Rs.4,13,057/- (Rupees four lakh thirteen thousand and fifty-seven 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.4,13,057/- (Rupees four lakh thirteen thousand and fifty-seven 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.1,00,000/- (Rupees one lakh only), on or before 05th April, 2026 to the bank.
(ii) Thereafter, the petitioner shall remit the balance overdue amount, with interest, in six (6) equal monthly installments starting from May 2026 and such payments shall be made on or before the 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.
