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2026 Supreme(Online)(Ker) 24315
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
NISHA.K – Appellant
Versus
AUTHORIZED OFFICER, THE KOTTACKKAL CO-OPERATIVE URBAN BANK LTD – Respondent
WP(C) NO. 12745 OF 2026
For the Appellants/Petitioners: SHRI.B.RAJESH (KOTTAYAM), SHRI.K.P.VISWAMBHARAN
For the Respondents: SRI. DEVAPRASANTH P. J., SC
The court allows restructuring of overdue loan payments under the SARFAESI Act to prevent coercive actions by the bank.
Headnote:Statute Analysis: The 'Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002' is pivotal in this writ petition concerning coercive bank actions. Facts of the Case: The petitioner Nisha K seeks relief against the bank's coercive steps for an overdue amount of ₹4,24,331.
Findings of Court:
The court queries the bank's submission on restructuring the overdue payments, allowing them under specified terms.
Issues: The key question framed pertains to the opportunity for the petitioner to regularise loan payments.
Ratio Decidendi: The court holds that granting installment facility is both fair and just considering the circumstances.
Result: This writ petition is allowed with specific payment directions for the overdue amount.
| Table of Content |
|---|
| 1. coercive action taken under sarfaesi act. (Para 1) |
| 2. leeway granted for clearing overdue payments. (Para 2 , 3) |
| 3. opportunity to regularise loan confirmed. (Para 4) |
P.V. BALAKRISHNAN, J.
…..................................... W.P.(C)No.12745 of 2026 …........................................................... Dated this the 31st 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 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 total overdue amount as on today, is Rs.4,24,331/- (Rupees Four Lakhs Twenty Four Thousand Three Hundred Thirty 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 petitioner can be granted an opportunity to clear the entire overdue amount of Rs.4,24,331/- (Rupees Four Lakhs Twenty Four Thousand Three Hundred Thirty One 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 bank;
(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest in 10 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.
