Court permits installment repayment of loan dues under SARFAESI, restores possession on housing loan clearance, allows coercive action resumption on default.

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 petitioner submitted that the petitioner may be given an opportunity to clear the entire dues in installments. He also submitted that since possession has been taken by the bank, there may be a direction to the bank to restore possession to the petitioner on clearing the overdues in housing loan accounts.

4. The learned counsel for the respondents submitted that there are dues in three loan accounts availed by the petitioner. In the first loan account, which is an educational loan, the total outstanding amount is Rs.3,33,414/- (Rupees three lakhs thirty three thousand four hundred and fourteen only), in the second loan which is a housing loan, the overdue is Rs.48,132/- (Rupees forty eight thousand one hundred and thirty two only) and in the third housing loan account, the overdue amount is Rs.19,347/- (Rupees nineteen thousand three hundred and forty seven only). He also submitted that the bank has no objections in permitting the petitioner to clear the afore dues by way of installments and to hand over possession back to the petitioner on clearing the overdue in housing loans.

5. Hence, considering the submissions made by the learned counsel for the respondents and the facts and circumstances of this case, this writ petition is disposed of in the following terms;

(i) The petitioner shall remit the entire overdue amount of Rs.67,479/- (Rupees sixty seven thousand four hundred and seventy nine only), in the two housing loans with interest, on or before 30^th April, 2026 to the bank.

(ii) Thereafter, the petitioner shall also pay the entire outstanding amount of Rs.3,33,414/- (Rupees three lakhs thirty three thousand four hundred and fourteen only) in the educational loan account, along with any accrued interest, costs and charges in 15 equal monthly installments, starting from April, 2026 and such payments shall be made 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) In case the petitioner clears the entire overdue amount in the housing loans, the respondents shall hand over the possession of the secured asset back to the petitioner.

(v) If the petitioner complies with the above directions, the respondents shall regularise the housing loan accounts and in case of failure to pay any of the installments as ordered afore, the bank will be at liberty to continue with the coercive steps already taken.