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2026 Supreme(Online)(Ker) 26105
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. Balakrishnan, J
Swapna – Appellant
Versus
Kerala Financial Corporation – Respondent
WP(C) NO. 13437 OF 2026
For the Appellants/Petitioners: SRI.T.D.SUSMITH KUMAR, SMT.VANDANA A., SMT.ANJALI R. MENON, SMT.ANJANA ASHOK, SHRI.C.SIVADAS
For the Respondents: SMT. DHANYA P. ASHOKAN( SR.)
Court permits installment payment of SARFAESI overdues to regularize loan account upon consent.
Headnote:The petitioners challenged coercive actions under Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), following notices issued for loan recovery due to overdues. The court considered submissions allowing clearance of dues. The court granted opportunity to petitioners to settle overdue amount with interest. The key issue was whether to permit installment payment to regularize the loan account amid SARFAESI proceedings. The court noted respondents' consent to installments as beneficial, emphasizing compliance for regularization. The writ petition is allowed, directing petitioners to pay Rs.5,00,000/- by 30th April 2026, balance in 15 monthly installments from May 2026, alongside regular EMIs, with liberty to resume coercive steps on default.
| Table of Content |
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| 1. challenge to sarfaesi coercive recovery actions. (Para 1) |
| 2. respondents consent to installment overdue clearance. (Para 2 , 3) |
| 3. opportunity granted for payment and account regularization. (Para 4) |
Dated this the 08th day of April, 2026 J U D G M E N T 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 petitioners.
2. Heard the learned counsel for the petitioners 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 petitioners 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 08.04.2026, is Rs.59,95,000/- (Rupees Fifty Nine Lakhs Ninety Five Thousand 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 petitioners can be granted an opportunity to clear the overdue amount of Rs.59,95,000/- (Rupees Fifty Nine Lakhs Ninety Five Thousand Only) with interest, in installments and regularise the account subject to terms.
Accordingly, this writ petition is allowed as follows;
1. The petitioners shall remit a sum of Rs.5,00,000/- (Rupees five lakhs only), on or before 30th April, 2026 to the respondents.
2. Thereafter, the petitioners shall remit the balance overdue amount, with interest, in fifteen (15) equal monthly installments starting from May 2026 and such payments shall be made on or before the end of every month.
3. The petitioners shall also continue to pay the regular EMIs/Installments along with the installments as directed afore.
4. If the petitioners comply 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.
