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2026 Supreme(Online)(Ker) 23858
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
SALAS – Appellant
Versus
AUTHORIZED OFFICER M/S MAHINDRA RURAL HOUSING FINANCE LTD – Respondent
WP(C) NO. 12387 OF 2026
For the Appellants/Petitioners: SRI.M.R.SARIN
For the Respondents: SRI. NAGARAJ NARAYANAN, SC
The court's ruling emphasizes the balance between creditor rights and debtor relief, allowing installment payments to regularize a loan account.
Headnote:{'statute_analysis': 'The court examined the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, relevant for the coercive actions taken against the petitioner.', 'facts_of_the_case': 'The petitioner, aggrieved by coercive action by the respondent, filed a writ petition seeking relief to clear overdue loan amounts. The overdue amount was stated as Rs.3,39,816/-.', 'findings_of_court': 'The court allowed the petition granting the petitioner an opportunity to clear dues in installments, subject to compliance with specified payment conditions.', 'issues': 'The court framed the question of whether the petitioner should be allowed to clear outstanding dues through installments.', 'ratio_decidendi': 'The court reasoned that allowing the petitioner to clear the dues in installments would not prejudice the respondent and would be beneficial.', 'result': 'Accordingly, this writ petition is allowed as follows; the petitioner shall remit a sum of Rs.50,000/- on or before 10th April, 2026.'}
| Table of Content |
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| 1. request for relief against coercive actions. (Para 1 , 2) |
| 2. court's decision to allow installment payments. (Para 3 , 4) |
JUDGMENT
It is aggrieved by the coercive action 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 respondent 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 total overdue amount as on today, is Rs.3,39,816/- (Rupees Three Lakhs Thirty Nine Thousand Eight Hundred Sixteen 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 entire overdue amount of Rs.3,39,816/- (Rupees Three Lakhs Thirty Nine Thousand Eight Hundred Sixteen 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 10th April, 2026 to the respondent;
(ii) Thereafter, the petitioner shall remit the balance overdue amount, with interest, in 8 equal monthly installments starting from May, 2026 and such payments shall be made on or before 15th 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 respondent will be at liberty to continue with the coercive steps already taken.
