WP(C) NO. 11042 OF 2025 1 2025:KER:28797 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 2ND DAY OF APRIL 2025 / 12TH CHAITHRA, 1947 WP(C) NO. 11042 OF 2025 AGAINST THE ORDER/JUDGMENT DATED IN MC NO.79 OF 2025 OF CHIEF JUDICIAL MAGISTRATE, ALAPPUZHA PETITIONERS: 1 HARIKRISHNAN K.R., AGED 40 YEARS RADHALAYA, MAVELIKKARA, TAZHAKARA, ALAPPUZHA, PIN - 690108 2 RADHAKRISHNAN, AGED 68 YEARS SWAROOPANANDAN, RADHALAYA, MAVELIKKARA, TAZHAKARA, ALAPPUZHA, PIN - 690108 BY ADV C.R.SURESH KUMAR RESPONDENTS: 1 THE MANAGER, AXIS BANK LTD., 2ND FLOOR, NIHAL COMPLEX, KARAMANA, THIRUVANANTHAPURAM, PIN - 695002 2 THE AUTHORIZED OFFICER, AXIS BANK LTD., RAC, NIHAL COMPLEX, KARAMANA, THIRUVANANTHAPURAM, PIN - 695002 3 THE MANAGER, RESERVE BANK OF INDIA, BAKERY JUNCTION ROAD, NANDAVANAM, PALAYAM, THIRUVANANTHAPURAM, KERALA, PIN - 695033 SRI. MADHU RADHAKRISHNAN, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.04.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 11042 OF 2025 2 2025:KER:28797 JUDGMENT The petitioners have approached this Court challenging proceedings under the SARFAESI Act which have been initiated by the respondent bank for recovery of the amounts due from the petitioners. 2. During the course of hearing, petitioners have confined the relief to an opportunity for repaying the overdue amount in instalments and to obtain regularisation of the loan account. 3. Learned counsel appearing for the respondent bank submits that though the overdue amount is only Rs.1,47,331/- as on 19.03.2025, the loan account of the petitioners cannot be regularized. It is submitted that as per the guidelines issued by the Reserve Bank of India, once a loan account is re-structured, and thereafter if the account again falls into NPA status the loan account cannot be upgraded unless 10% of the principal amount is also remitted by the borrower. It is submitted that if the petitioners remit the overdue amount immediately, the loan account of the petitioners can be regularized. 4. Having regard to the circumstances of the case and the submissions made as recorded above, I am of the view that the petitioners can be granted an opportunity to repay the total WP(C) NO. 11042 OF 2025 3 2025:KER:28797 overdue on condition that Rs.50,000/- shall be paid on or before 30.04.2025 and the balance amount is paid in 4 equal monthly instalments, the first of which shall be paid on or before 30.05.2025. The subsequent instalments shall be paid on the last working day of every succeeding months and thereafter, if the amount so directed is repaid within the time as directed above, the loan account shall be regularised. 5. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire overdue amount of Rs.1,47,331/- along with any accrued interest, costs and charges from the petitioners and regularise the loan account of the petitioners in the following manner: i. The petitioners shall pay a sum of Rs.50,000/- (Rupees ten thousand only) on or before 30.04.2025; the balance overdue amount along with any accrued interest, costs and charges shall be repaid in four equal monthly instalments; ii. The first instalment shall be paid on or before 30.05.2025 and the subsequent instalments shall be paid on or before the last working day of every succeeding months; iii. Petitioners shall continue to pay the regular EMI’s/instalments along with the instalments directed above; iv. In the event of default of any one instalment, the WP(C) NO. 11042 OF 2025 4 2025:KER:28797 respondent bank shall be entitled to proceed in accordance with the law; v. In order to enable the petitioners to repay the entire amounts, all coercive proceedings shall be kept in abeyance. The writ petition is disposed of as above. sd/- GOPINATH P. JUDGE Nsd WP(C) NO. 11042 OF 2025 5 2025:KER:28797 APPENDIX OF WP(C) 11042/2025 PETITIONER EXHIBITS Exhibit P-1 A TRUE COPY OF THE NOTICE U/S 13(2) OF THE SARFAESI ACT,2002 DATED 27/08/2024 Exhibit P-2 A TRUE COPY OF THE DEMAND NOTICE DATED 18/02/2025 Exhibit P- 3 A TRUE COPY OF THE ‘A’ DIARY PROCEEDING DATED 12/03/2025 DOWNLOADED FROM THE OFFICIAL WEBSITE(E-COURTS) Exhibit P-4 A TRUE COPY OF THE ‘A’ DIARY PROCEEDING DATED 30/04/2025