Court permits installment settlement of loan arrears under SARFAESI to avoid coercive action, conditional on compliance.

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 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 01.02.2026 is Rs.4,81,545/- (Rupees Four Lakhs Eighty One Thousand Five Hundred Forty 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 outstanding amount of Rs.4,81,545/- (Rupees Four Lakhs Eighty One Thousand Five Hundred Forty Five only), along with any accrued interest, costs and charges on the following conditions. (i) The petitioner shall pay the entire outstanding amount of Rs.4,81,545/- (Rupees Four Lakhs Eighty One Thousand Five Hundred Forty Five only) along with any accrued interest, costs and charges in 2 equal monthly installments commencing from the month of April, 2026 and such payments shall be paid on or before 25^th of every month;

(ii) 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.

(iii) On payment of the entire outstanding amount, the respondents shall hand over possession of the vehicle back to the petitioner.

This writ petition is disposed of as above.