The High Court may facilitate a consensual installment repayment plan for debts under the SARFAESI Act when the financial institution agrees, while preserving the creditor's right to resume coercive recovery actions in the event of default.

J U D G M E N T Dated this the 1st day of June, 2026 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 entire outstanding amount, by way of installments since, the same is only beneficial to it. He also submitted that the total outstanding amount as on today, is Rs.3,57,060/- (Rupees Three Lakhs Fifty Seven Thousand and Sixty 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 entire outstanding amount of Rs.3,57,060/- (Rupees Three Lakhs Fifty Seven Thousand and Sixty only), along with any accrued interest, costs and charges on the following conditions:-

(i) The petitioner shall pay the entire outstanding amount of Rs.3,57,060/- (Rupees Three Lakhs Fifty Seven Thousand and Sixty only) along with any accrued interest, costs and charges in 4 equal monthly installments commencing from the month of June, 2026 and such payments shall be paid on or before 30^th of every month;

(ii) If the petitioner complies with the afore order, no coercive steps shall be taken by the respondent and in the event of default of any one installment, the respondent bank can continue with the coercive steps already taken as per law.

(iii) In case the petitioner complies with the afore order, the respondent shall handover the possession of the vehicle back to the petitioner forthwith.

This writ petition is disposed of as above.