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2026 Supreme(Online)(Ker) 20858
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
SUNEESH C.K. – Appellant
Versus
AXIS BANK LIMITED – Respondent
WP(C) NO. 11125 OF 2026
For the Appellants/Petitioners: SRI.ENOCH DAVID SIMON JOEL, SRI.S.SREEDEV, SRI.RONY JOSE, SHRI.LEO LUKOSE, SRI.KAROL MATHEWS SEBASTIAN ALENCHERRY, SHRI.DERICK MATHAI SAJI, SHRI.KARAN SCARIA ABRAHAM, SHRI.RINOY INNOCENT, SHRI.AADITHYA S.R.
For the Respondents: None mentioned
The court allows defaulting borrowers to regularize their loan through an installment plan in light of the SARFAESI Act provisions.
Headnote:Statute Analysis: The court considered the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) in deciding the petitioners' case. Facts of the Case: The writ petition challenges the coercive action initiated by the respondents due to defaulted loan payments.
Findings of Court:
The court allowed the writ petition, granting the petitioners a chance to regularise their loan with an installment plan.
Issues: The primary question was whether the petitioners should be allowed to clear the overdue amounts through installments.
Ratio Decidendi: The court emphasized the bank's willingness to permit the petitioners to clear dues, affirming that regularisation would be beneficial.
Result: The petitioners are directed to pay an initial amount followed by monthly installments to avoid further coercive actions.
| Table of Content |
|---|
| 1. challenge to coercive action under sarfaesi act. (Para 1 , 2) |
| 2. bank's consent for installment payment. (Para 3) |
| 3. court's directive on payment to regularize 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 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 petitioners.
2. Heard the learned counsel for the petitioners 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 petitioners 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.2,29,091/- (Rupees Two Lakhs Twenty Nine Thousand Ninety One 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 petitioners can be granted an opportunity to clear the overdue amount of Rs.2,29,091/- (Rupees Two Lakhs Twenty Nine Thousand Ninety One only) with interest, in installments and regularise the account subject to terms.
Accordingly, this writ petition is allowed as follows;
(i) The petitioners shall remit a sum of Rs.25,000/- (Rupees Twenty Five Thousand only) on or before 31st March, 2026 to the bank.
(ii) Thereafter, the petitioners shall remit the balance overdue amount with interest in 8 equal monthly installments starting from the month of April, 2026 and such payments shall be made on or before 25th of every month.
(iii) The petitioners shall also continue to pay the regular EMIs/Installments along with the installments as directed afore.
(iv) If the petitioners 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.
