Back
2026 Supreme(Online)(Ker) 25638
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
SYAMLAL J S – Appellant
Versus
SUNDARAM HOME FINANCE LTD – Respondent
WP(C) NO. 7259 OF 2026
For the Appellants/Petitioners: SMT.SOORYA S.SHENOY
For the Respondents: SMT.S.AMBILY
Court grants installment payment opportunity for SARFAESI loan arrears with lender consent, allowing account regularization on compliance.
Headnote:The petitioners challenged coercive recovery measures under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI Act'), particularly Section 13(4), seeking relief from enforcement due to loan arrears. Essential facts involved overdue payments leading to recovery notices, with petitioners requesting installment clearance. The court found mutual consent for a structured settlement beneficial to the lender. The primary issue was whether petitioners deserved an opportunity to settle arrears via installments before SARFAESI enforcement. The ratio decidendi emphasized equitable relief where lender consents, allowing regularization upon compliance, subject to continued payments and default consequences. The writ petition was allowed, directing petitioners to remit overdue amount of Rs.2,30,520/- with interest in five equal monthly installments from April 2026, alongside regular EMIs; lender to regularise account on compliance, else proceed with recovery.
| Table of Content |
|---|
| 1. petitioners challenge sarfaesi coercive action. (Para 1) |
| 2. counsel agree on installment clearance of arrears. (Para 2 , 3 , 4) |
| 3. court permits installments for loan regularization. (Para 5) |
JUDGMENT
Dated this the 6th day of April, 2026 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 petitioners.
2. Heard the learned counsel for the petitioners and the learned counsel for the respondent.
3. The learned counsel for the petitioners submits that an opportunity may be given to the petitioners to clear the overdue amount in installments.
4. The learned counsel for the respondent submitted that the respondent has no objections in permitting the petitioners 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 overdue amount as on date, is Rs.2,30,520/- (Rupees Two Lakhs Thirty Thousand Five Hundred and Twenty only)
5. 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 petitioners can be granted an opportunity to clear the overdue amount of Rs.2,30,520/- (Rupees Two Lakhs Thirty Thousand Five Hundred and Twenty only) with interest, in installments and regularise the account subject to terms.
Accordingly, this writ petition is allowed as follows:
(i) The petitioners shall remit the entire overdue amount, with interest in five equal monthly installments, commencing from April, 2026 and such installments shall be paid on or before the end of every month;
(iii) The petitioners shall also continue to pay the regular EMIs/Installments along with the installments as directed afore;
(iv) If the petitioners comply 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.
