Court permits installment repayment under SARFAESI to regularize loans on bank consent, averting coercive enforcement.

JUDGMENT

It is aggrieved by the coercive action taken by the respondent 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 respondent.

3. The learned counsel for the respondent submitted that the bank has no objections in permitting the petitioner to clear the amount due to the bank, by way of installments, since, the same is only beneficial to it. He also submitted that the overdue amount in the housing loan, as on date, is Rs.24,55,237/- (Rupees Twenty Four Lakhs Fifty Five Thousand Two Hundred and Thirty Seven only) and the total outstanding amount in the ordinary loan, as on today, is Rs.8,51,085/- (Rupees Eight Lakhs Fifty One Thousand Eighty Five only)

4. Hence, considering the submissions made by the learned counsel for the respondent and the facts and circumstances of this case, I am of the view that the petitioner can be granted an opportunity to clear the afore dues in installments subject to terms.

Accordingly, this writ petition is allowed as follows;

(i) The petitioner shall remit a sum of Rs.5,00,000/- (Rupees Five Lakhs only), in the overdue account, on or before 30^th April, 2026 to the bank.

(ii) Thereafter, the petitioner shall remit the balance overdue with interest in 10 equal monthly installments, commencing from May 2026 and such payments shall be made on or before the end of every month.

(iii) The petitioner shall also remit the total outstanding amount in the ordinary loan account in 10 equal monthly installments, commencing from April 2026 and such payments shall be made on or before the end of every month.

(iv) The petitioner shall continue to pay the regular EMIs/installments along with the installments as directed afore in the housing loan.

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