The court may permit a borrower to clear outstanding dues in installments to avoid coercive action under the SARFAESI Act, provided the financial institution consents to such an arrangement.

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07.08.2026, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

P.V. BALAKRISHNAN, J.

W.P.(C) No.26508 of 2026

Dated this the 7th day of August, 2026

J U D G M E N T

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.

Heard the learned counsel for the petitioner and the learned counsel for the respondent.

The learned counsel for the petitioner submits that an opportunity may be given to the petitioner to clear the entire outstanding amount in the overdraft account in installments.

The learned counsel for the respondent submitted that the bank has no objections in permitting the petitioner to clear the entire outstanding amount in the overdraft account, by way of installments since, the same is only beneficial to it. He also submitted that the total outstanding amount in the overdraft account, as on 07.08.2026, is Rs.90,93,633/- (Rupees ninety lakhs ninety three thousand six hundred and thirty three only).

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 in the overdraft account of Rs.90,93,633/- (Rupees ninety lakhs ninety three thousand six hundred and thirty three only), along with any accrued interest, costs and charges on the following conditions:-

(i) The petitioner shall remit a sum of Rs.10,00,000/-(Rupees ten lakhs only) on or before 24th August, 2026 to the bank;

(ii) Thereafter, the petitioner shall remit the balance outstanding amount in overdraft account along with any accrued interest, costs and charges in 12 equal monthly installments commencing from September, 2026 and such payments shall be made on or before the end of every month;

(iii) 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 bank can continue with the coercive steps already taken as per law.

This writ petition is disposed of as above.