1. Borrower seeks installment repayment facility for outstanding debt after property was bid by the bank in auction, though sale remains unconfirmed. (Para 1 , 2 )
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2026 Supreme(Online)(Ker) 74892
IN THE HIGH COURT OF KERALA AT ERNAKULAM
Viju Abraham, J
Musthafa – Appellant
Versus
Perinthalmanna Co-operative Agricutural And Rural Development Bank Ltd No. P 505 – Respondent
WP(C) NO. 38299 OF 2025
Important Points
The Court permitted the petitioner to pay 10% of the outstanding amount upfront and the balance in 12 equated monthly installments, specifying that the confirmation of sale be kept in abeyance subject to strict compliance with the payment schedule.
Subject
Banking - Debt Recovery
Headnote
(A) Banking Recovery - Payment of Outstanding Dues - Grant of installments - Court may permit the petitioner to repay outstanding loan amounts in equated monthly installments to prevent the confirmation of a sale in an auction, subject to the condition that any default allows the bank to resume recovery proceedings. (Para 3)
Issues: Whether the petitioner can be permitted to repay the outstanding bank amount in monthly installments to stall the confirmation of sale of his property.
Issues: Whether the petitioner can be permitted to repay the outstanding bank amount in monthly installments to stall the confirmation of sale of his property.
Legal Category Hierarchy
Advocates:
For the Appellants/Petitioners: Ajith M. Jiji
For the Respondents: V. Krishna Menon, Ameena R.
For the Appellants/Petitioners: Ajith M. Jiji
For the Respondents: V. Krishna Menon, Ameena R.
Table of Contents
2. Bank opposes relief citing default in payment, while borrower requests permission to discharge the total outstanding debt through a structured installment plan. (Para 2 )
3. Court recognizes the limited scope of the petitioner's request for repayment in installments and accepts the proposed schedule as a viable resolution to prevent confirmation of sale. (Para 3 )
4. A writ court may grant relief by permitting settlement of outstanding loan dues in installments, provided the sale of the secured asset has not yet been confirmed. (Para 3 )
5. Court allows repayment in installments with a mandatory initial deposit, ordering status quo on sale confirmation until the repayment schedule is completed. (Para 3 )
6. Can a court permit an installment-based repayment plan for an outstanding loan during the recovery process?
Yes, if the sale of the asset in question has not yet been confirmed, the court has the discretion to allow the borrower to pay off outstanding debt through an agreed-upon monthly installment schedule. (Para 3 )
7. What is the consequence of failing to adhere to a court-ordered installment schedule in a debt recovery case?
If a borrower commits a single default in complying with the court-mandated payment schedule, the respondent bank is fully authorized and free to continue with the underlying recovery proceedings. (Para 3 )
8. Does a court-approved repayment arrangement affect the status of a pending sale confirmation?
Yes, once the court directs a repayment schedule, the confirmation of the sale is kept in abeyance, provided the borrower strictly adheres to the payment directions as ordered. (Para 3 )
VIJU ABRAHAM, J.
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W.P.(C) No.38299 of 2025 - - - - - - - - - - - - - - - - - - - - - - - - - -
Dated this the 13th day of November, 2026
JUDGMENT
The petitioner has approached this Court seeking a direction to the respondents to permit him to repay the entire outstanding amount in monthly instalments.
2. The learned counsel for the respondent bank based on the counter affidavit filed submits that, since amounts were due from the petitioner, the property was put in auction and the bank itself has bid the property, but the sale has not yet been confirmed. It is also submitted that the amount due as on 01.11.2026 is Rs.57,30,188/-. Thereupon the learned counsel for the petitioner submits that 10% of the said amount will be paid within a period of one month and he may be permitted to pay the balance amount in instalments.
3. Taking into consideration the above facts and circumstances and the only relief sought for by the petitioner is for payment of the amount in instalments, I am inclined to dispose of the writ petition with the following directions:
i) The petitioner shall pay 10% of the amount due, i.e., Rs.5.75 Lakhs to the respondents within a period of one month from today.
ii) The balance amount of Rs.51,55,188/- (Rupees fifty one lakhs fifty five thousand one hundred and eighty eight only) with appropriate interest and other charges shall be paid in 12 equated monthly instalments, commencing from 01.01.2027 and continue to pay the subsequent instalments on the 1st day of succeeding months.
iii) In the event of any single default in payment as directed above, the respondent bank shall be free to continue with the recovery proceedings.
iv) It is made clear that if the petitioner complies with the aforesaid directions, the confirmation of sale shall be kept in abeyance.
