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2026 Supreme(Online)(Ker) 20856
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
SANOOP P.S – Appellant
Versus
THE FEDERAL BANK LTD – Respondent
WP(C) NO. 11011 OF 2026
For the Appellants/Petitioners: SMT.M.R.REENA, SRIP.S.SUJETH
For the Respondents: SRI P PAULOCHAN ANTONY
The court allowed a debtor to repay overdue amounts in installments under the SARFAESI Act while balancing creditor rights.
Headnote:Statute Analysis: The judgment deals with the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, particularly its implications in loan recovery actions. Facts of the Case: The petitioner challenges coercive steps from the respondent bank regarding overdue loan payments amounting to Rs.3,29,292/-.
Findings of Court:
The court determines that the petitioner should be allowed an opportunity to regularise the loan by paying the overdue amount in installments.
Issues: The court frames the issue regarding the legality of coercive steps under the SARFAESI Act.
Ratio Decidendi: The judgment emphasizes the need for balancing the bank's rights with the borrower's giving an opportunity to settle dues, as stated, 'the overdue amount as on 19.03.2026, is Rs.3,29,292/-.
Result: Accordingly, this writ petition is allowed as follows; (i) The petitioner shall remit a sum of Rs.75,000/- (Rupees seventy five thousand only), on or before 31st March, 2026 to the bank. (ii) Thereafter, the petitioner shall remit the balance overdue amount, with interest, in eight (8) equal monthly installments starting from April 2026.
| Table of Content |
|---|
| 1. challenging coercive action under sarfaesi act (Para 1) |
| 2. counsel for respondent supports installment payment. (Para 2) |
| 3. petitioner allowed to pay overdue amount in installments. (Para 3) |
| 4. court emphasizes need for repayment flexibility. (Para 4) |
P.V. BALAKRISHNAN, J.
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W.P.(C)No. 11011 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.3,29,292/- (Rupees three lakh twenty-nine thousand two hundred and ninety-two 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.3,29,292/- (Rupees three lakh twenty-nine thousand two hundred and ninety-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.75,000/- (Rupees seventy five thousand only), on or before 31st March, 2026 to the bank.
(ii) Thereafter, the petitioner shall remit the balance overdue amount, with interest, in eight (8) equal monthly installments starting from April 2026 and such payments shall be made on or before the end 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.
