#coercive recovery

The Allahabad High Court has mandated a structured, court-supervised repayment plan for defaulted bank loans, staying all coercive recovery actions and conditioning waiver of statutory charges on complete repayment. This sets a precedent for debtor-friendly relief in civil debt recovery, balancing bank interests with constitutional principles of proportionality and fair procedure.

Kerala High Court allows borrowers to regularize loan accounts by repaying Rs. 1,90,414 in installments while continuing EMIs, staying SARFAESI enforcement. The ruling mandates strict compliance timelines, balancing borrower relief with creditor interests under proportionality principles.

The Kerala High Court has ruled that banks must accept structured installment plans to avoid coercive asset recovery under the SARFAESI Act, provided the borrower demonstrates genuine repayment capacity. This sets a precedent for judicial intervention to balance financial enforcement with constitutional rights to livelihood and dignity, affecting thousands of individual borrowers facing bank seizures.

Bombay High Court stays coercive possession steps by Canara Bank without 15-day notice to borrower, citing impact on children's examinations and pending FIR.