#loan regularization

The Kerala High Court has ruled that banks may allow borrowers to clear SARFAESI-triggered arrears in structured installments, provided they continue regular EMIs, effectively suspending coercive recovery actions. This sets a precedent for judicial intervention in debt restructuring where borrowers demonstrate willingness to repay, balancing creditor rights with borrower dignity under Article 21.

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.