The court may allow a borrower to regularize a loan account by paying overdue amounts in installments if the bank consents, thereby staying coercive actions under the SARFAESI Act.

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.

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W.P.(C) No.27221 of 2026

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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 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.

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

The learned counsel for the petitioner submits that an opportunity may be given to the petitioner to clear the overdue amount in installments.

The learned counsel for the respondents submitted that the bank has no objection 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 it. He also submitted that the total overdue amount as on 07.08.2026, is Rs.1,40,880/- (Rupees one lakh forty thousand eight hundred and eighty only only).

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 entire overdue amount of Rs.1,40,880/- (Rupees one lakh forty thousand eight hundred and eighty only 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.70,000/- (Rupees seventy thousand only) on or before 05.00 p.m. on 10th August, 2026 to the Bank;

(ii) Thereafter, the petitioner shall remit the balance overdue amount with interest on or before the end of August, 2026;

(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 bank will be at liberty to continue with the coercive steps already taken.