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2026 Supreme(Online)(Ker) 26117
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
PRAKASH PT – Appellant
Versus
P N B HOUSING FINANCE LTD – Respondent
WP(C) NO. 14445 OF 2026
For the Appellants/Petitioners: SHRI.APPU AJITH
For the Respondents: SHRI.SABU S.KALLARAMOOLA
Court permitted installment payment of loan overdues under SARFAESI to regularize account, subject to compliance.
Headnote:Under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’), the borrower challenged coercive recovery actions due to loan defaults. The court considered the facts of overdue payments and submissions for installment clearance. The court found merit in granting a one-time opportunity for regularization. Key issue framed was whether to permit installment payment of overdues to avert enforcement. The ratio decidendi emphasized mutual consent of parties for beneficial loan regularization, subject to compliance with payment terms. The writ petition is allowed, directing initial payment of Rs.50,000/- by 30th April, 2026, balance in nine monthly installments from May 2026, alongside regular EMIs, with liberty to resume coercive steps on default.
| Table of Content |
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| 1. petition challenges sarfaesi coercive actions for loan recovery. (Para 1) |
| 2. parties agree to installment clearance of overdues. (Para 2 , 3 , 4) |
| 3. court directs installment payments with regularization on compliance. (Para 5) |
JUDGMENT
Dated this the 8th day of April, 2026 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 petitioner submitted that an opportunity may be given to the petitioner to clear the overdue amount in installments.
4. 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 date, is Rs.5,79,877/- (Rupees Five Lakhs Seventy Nine Thousand Eight Hundred and Seventy Seven only)
5. 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.5,79,877/- (Rupees Five Lakhs Seventy Nine Thousand Eight Hundred and Seventy Seven 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 ofRs.50,000/- (Rupees Fifty Thousand only)on or before 30thApril, 2026 to the respondents;
(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest in nine equal monthly installments, commencing from May, 2026, and such installments shall be paid on or before the end 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.
