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2026 Supreme(Online)(Ker) 22604
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
RIJO MATHEW – Appellant
Versus
FEDERAL BANK – Respondent
WP(C) NO. 11920 OF 2026
For the Appellants/Petitioners: SHRI.JOSEPH KIRAN D. THEKKEKARA, SRI.ARUN JOSE THOMAS, SHRI.DAVIS PIUS, SHRI.SHINTO SABASTIAN, SHRI.JEO GEORGE, SMT.RESHMA R.NAIR, SMT.CHINNU ROSE MARY THOMAS, SHRI.THANKARAJ P. M., SMT.SOUMIYA C.D
For the Respondents: SMT. SARITHA THOMAS, SC
Court allows debtor to clear dues through structured installments under SARFAESI Act, balancing creditor rights and debtor relief.
Headnote:The petitioner challenged the coercive actions of the respondents under the SARFAESI Act, 2002, seeking an opportunity to clear the outstanding debts. The court found merit in allowing payment in installments, mandating an initial payment followed by monthly installments, while restricting coercive measures if complied. The decision balances creditor interests with debtor relief under the law and acknowledges the nature of financial obligations involved.
| Table of Content |
|---|
| 1. petitioner's grievance regarding coercive action. (Para 1) |
| 2. respondent's submission on debt recovery and installment arrangement. (Para 2 , 3) |
| 3. court permits structured payment plan for debt settlement. (Para 4) |
P.V. BALAKRISHNAN, J.
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W.P.(C) No. 11920 of 2026 ==========================
Dated this the 27th day of March, 2026 J U D G M E N T 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 bank has no objections in permitting the petitioner to clear the entire outstanding amount, by way of installments since, the same is only beneficial to the bank. He also submitted that the total outstanding amount as on today is Rs.1,52,59,013/- (Rupees One Crore Fifty-Two Lakh Fifty-Nine Thousand and Thirteen 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 outstanding amount of Rs.1,52,59,013/- (Rupees One Crore Fifty-Two Lakh Fifty-Nine Thousand and Thirteen Only), along with any accrued interest, costs and charges on the following conditions.
1. The petitioner shall remit a sum of Rs.15,00,000/- (Rupees fifteen lakh only), on or before 15th April, 2026 to the bank
2. Thereafter, the petitioner shall pay the balance outstanding amount along with any accrued interest, costs and charges in eleven (11) equal monthly installments commencing from the month of May, 2026 and such payments shall be paid on or before
20th of every month;
3. If the petitioner complies with the afore order no coercive steps shall be taken by the respondents and in the event of default of any one installment, the respondents can continue with the coercive steps already taken as per law.
This writ petition is disposed of as above.
