Facts
The petitioner, Ranjith T., filed a writ petition seeking relief against coercive recovery proceedings initiated by the respondent bank under the SARFAESI Act, 2002
Source reference: p. 2, para. 1The bank had previously issued a possession notice on January 20, 2026, through an Advocate Commissioner
Source reference: p. 5, Exhibit P1During the proceedings, the respondent bank stated that the total overdue amount as of March 27, 2026, was Rs. 4,64,181/-
Source reference: p. 2, para. 3The bank expressed willingness to allow the petitioner to clear these overdues through installments and regularize the loan account
Source reference: p. 2, para. 3Issues
Whether the Court should exercise its jurisdiction to permit the petitioner to clear the loan overdues in installments and stay coercive recovery actions under the SARFAESI Act
Source reference: p. 2, para. 4Law Applied
The court considered the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), which provides the framework for banks to recover dues without the intervention of a court
Source reference: p. 2, para. 1The court applied the principle of equitable relief in debt recovery matters, whereby a debtor may be granted a reasonable opportunity to regularize a loan account through a court-monitored installment plan, provided the secured creditor does not object
Source reference: p. 2, para. 3-4Reasoning
The court's reasoning was based on the consensus between the parties.
Source reference: no citationThe respondent bank explicitly stated it had no objection to the petitioner regularizing the account via installments, noting that such an arrangement was "beneficial to the bank"
Source reference: p. 2, para. 3Given the facts and circumstances, the court found it appropriate to grant the petitioner an opportunity to clear the specific overdue amount of Rs. 4,64,181/- plus interest
Source reference: p. 3, para. 4The court structured the relief by imposing strict timelines for an initial payment and subsequent monthly installments, ensuring that the bank's right to continue coercive action would be restored immediately upon any default by the petitioner
Source reference: p. 3-4, para. 4(i)-(iv)Holding
The High Court allowed the writ petition, granting the petitioner the opportunity to regularize the loan account subject to specific conditions
The court directed the petitioner to: (i) remit Rs. 1,00,000/- on or before April 30, 2026; (ii) remit the balance overdue amount in 10 equal monthly installments starting May 2026; and (iii) continue paying regular EMIs
Source reference: p. 3, para. 4(i)-(iii)The court held that if the petitioner complies with these directions, the account shall be regularized; however, in the event of a default on any single installment, the bank is at liberty to resume coercive steps
Source reference: p. 3-4, para. 4(iv)Original Court PDF
RANJITH T.,S/O RAVEENDRAN T.,vsAXIS BANK LTD,
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