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2026 Supreme(Online)(Ker) 26562
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. V. BALAKRISHNAN, J
SANGEETH K. SUNNY – Appellant
Versus
AUTHORISED OFFICER, SUNDARAM HOME FINANCE LIMITED – Respondent
WP(C) NO. 38771 OF 2025
For the Appellants/Petitioners: SHRI.SALIM V.S., SHRI.SHANAVAS.S, SHRI.K.MUHAMMED THOYYIB, SHRI.M.M.ANSAR, SMT.A.M.FOUSI, SHRI.GENTLE C.D., SHRI.HUSSAM K.S.
For the Respondents: SHRI.JITHIN SAJI ISAAC, SHRI.K.J.SAJI ISAAC, DR.ELIZABETH VARKEY
Court permitted installment payment of loan overdues under SARFAESI to regularize account upon compliance.
Headnote:The petitioner challenged coercive recovery actions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI Act'). Essential facts involved loan defaults leading to enforcement proceedings by the finance company. The court found mutual consent for installment repayment feasible. Primary issue was whether to permit the petitioner to settle overdue amounts in installments. The ratio decidendi emphasized balancing recovery rights with debtor opportunities for regularization, as both parties agreed to structured payments. The writ petition was allowed, directing initial payment of Rs.50,000/- by 30th April, 2026, balance in eight 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) |
JUDGMENT
Dated this the 7th 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, isRs.2,45,577/- (RupeesTwo Lakhs Forty Five Thousand Five Hundred andSeventy 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 ofRs.2,45,577/- (Rupees Two Lakhs Forty FiveThousand Five 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 of Rs.50,000/- (Rupees Fifty Thousand only) on or before 30th April, 2026 to the respondents;
(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest in eight 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.
