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2026 Supreme(Online)(Ker) 26090
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
VISWANATHAN.V – Appellant
Versus
THE AUTHORIZED OFFICER, SUNDARAM HOME FINANCE LIMITED – Respondent
WP(C) NO. 7748 OF 2026
For the Appellants/Petitioners: SHRI.K.M.MUHAMMED HUSSAIN, SHRI.MANUMON A.
For the Respondents: SMT.S.AMBILY
Court permits installment payment of loan overdues under SARFAESI to regularize account, benefiting lender.
Headnote:The petitioner challenged coercive measures under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI Act'). Essential facts involved loan default leading to enforcement actions by the financier. The court found scope for one-time settlement. Issues centered on permissibility of installment payments to avert SARFAESI proceedings. The court reasoned that allowing regularization benefits the lender, permitting clearance of specified overdue amount. The writ petition is allowed, directing payment of Rs.75,000/- by 30th April 2026, balance in ten monthly installments from May 2026, alongside regular EMIs, with liberty to resume coercive steps on default.
| Table of Content |
|---|
| 1. petition challenges sarfaesi coercive actions. (Para 1) |
| 2. respondents agree to installment regularization. (Para 2 , 3) |
| 3. court directs structured overdue payments. (Para 4) |
Dated this the 08th day of April, 2026 JUDGMENT It is aggrieved by the coercive steps 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 respondents have 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 them. He also submitted that the overdue amount as on 31.03.2026, is Rs.4,16,413/- (Rupees Four Lakhs Sixteen Thousand Four Hundred 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 overdue amount of Rs.4,16,413/- (Rupees Four Lakhs Sixteen Thousand Four Hundred and Thirteen Only) with interest, in installments and regularise the account subject to terms.
Accordingly, this writ petition is allowed as follows;
1. The petitioner shall remit a sum of Rs.75,000/- (Rupees seventy five thousand only), on or before 30th April, 2026 to the respondents.
2. Thereafter, the petitioner shall remit the balance overdue amount, with interest, in ten (10) equal monthly installments starting from May 2026 and such payments shall be made on or before the end of every month.
3. The petitioner shall also continue to pay the regular EMIs/Installments along with the installments as directed afore.
4. 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.
