#installment plan

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.

The Allahabad High Court has ruled that agricultural loan recovery cannot proceed through forced land auction when the borrower is a small farmer willing to repay in installments, affirming that livelihood protection overrides rigid asset recovery. This sets a critical precedent for banks and recovery officers to apply proportionality and humane discretion under SARFAESI proceedings, especially when the debtor’s primary asset is their means of subsistence.