Topic

EMI Rescheduling

1 articleLatest April 2026
SARFAESI Act Section 13(4) | Borrowers May Deposit 20% Dues & Reschedule EMIs During DRT Vacancy to Halt Possession: MP HC Jabalpur
Case Law Analysis
|Madhya Pradesh High Court

SARFAESI Act Section 13(4) | Borrowers May Deposit 20% Dues & Reschedule EMIs During DRT Vacancy to Halt Possession: MP HC Jabalpur

The Madhya Pradesh High Court has ruled that borrowers in default may avoid coercive possession under SARFAESI by depositing 20% of outstanding dues and agreeing to a revised EMI schedule when the Debt Recovery Tribunal is vacant. This interim relief balances lender rights with borrower protection, setting a precedent for other jurisdictions facing DRT vacancies and preventing abuse of procedural delays.