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2026 Supreme(Online)(Ker) 22448
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
SANTHOSH KUMAR V – Appellant
Versus
THE AUTHORIZED OFFICER, PIRAMAL FINANCE LTD – Respondent
WP(C) NO. 45086 OF 2025
For the Appellants/Petitioners: SRI.M.R.SASITH
For the Respondents: Shri.P.PAULOCHAN ANTONY, Shri.SREEJITH K., Shri.G.VISWANATHAN, Smt.ASWNI M.P., Shri.JOSEPH LIJO
The court allows the petitioner to clear overdue loan amounts through installments, balancing creditor rights and debtor opportunities under the SARFAESI Act.
Headnote:The petitioner filed a writ petition challenging coercive actions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The court determined that the petitioner could clear overdue amounts through installments. Key issues included respondents' consent for regularization and terms for payment. The final ruling permitted structured repayments with conditional regularization of the loan account.
| Table of Content |
|---|
| 1. petitioner's challenge to coercive action under sarfaesi act. (Para 1 , 2) |
| 2. respondents' submission on allowing installment payments. (Para 3) |
| 3. court's observation and decision on payment structure. (Para 4) |
P.V. BALAKRISHNAN, J.
…..................................... W.P.(C)No.45086 of 2025 …........................................................... Dated this the 30th 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 respondents have 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 total overdue amount as on today, is Rs.5,83,195/- (Rupees Five Lakhs Eighty Three Thousand One Hundred Ninety Five 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 entire overdue amount of Rs.5,83,195/- (Rupees Five Lakhs Eighty Three Thousand One Hundred Ninety Five 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.50,000/- (Rupees Fifty Thousand only) on or before 15th April, 2026 to the respondents;
(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest in 12 equal monthly installments starting from May, 2026 and such payments shall be made on or before 20th 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 respondents will be at liberty to continue with the coercive steps already taken.
