Kerala High Court
T.K Jayasagar vs Kuttanad Co-Operative Agricultural ... on 19 July, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 19TH DAY OF JULY 2024 / 28TH ASHADHA, 1946
WP(C) NO. 23353 OF 2024
PETITIONERS:
1 T.K JAYASAGAR
AGED 58 YEARS
S/O JAGADAMMA, THAIVEEDU, KAVALAM, CHERUKARA PO,
KUTTANAD, KAVALAM, ALAPPUZHA., PIN - 688506
2 C.M JAGADAMMA
AGED 84 YEARS
W/O KUMARAN, THAIVEEDU, KAVALAM, CHERUKARA PO, KUTTANAD,
KAVALAM, ALAPPUZHA., PIN - 688506
BY ADVS.
S.MUMTAZ
ALISHA ASLAM
RESPONDENTS:
1 KUTTANAD CO-OPERATIVE AGRICULTURAL RURAL DEVELOPMENT BANK
LTD. NO. A.1153,
REPRESENTED BY ITS SECRETARY, OPPOSITE NEDUMUDI BRIDGE,
THEKKEKARA, MANCOMPU, ALAPPUZHA., PIN - 688503
2 ASST REGISTRAR OF CO-OPERATIVE SOCIETIES
OFFICE OF THE ASST REGISTRAR OF CO-OPERATIVE SOCIETIES
(GENERAL), ALAPPUZHA VELIYANAD ROAD, KALARCODE,
MULATHUVALAPPU, ALAPPUZHA., PIN - 688002
3 THE SPECIAL SALE OFFICER
KUTTANAD CO-OPERATIVE AGRICULTURAL RURAL DEVELOPMENT BANK
LTD. NO. A.1153, MANCOMPU, THEKKEKARA, ALAPPUZHA.,
PIN - 688503
4 REGISTRAR OF CO-OPERATIVE SOCIETIES
OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES,
THIRUVANANTHAPURAM., PIN - 695001
5 STATE OF KERALA
REP BY THE SECRETARY, CO-OPERATION DEPARTMENT, SECRETARIAT,
THIRUVANANTHAPURAM., PIN - 695001
BY ADV VENUGOPALA PANICKER K.N.
SMT.RESMI THOMAS - GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.07.2024,
THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 23353 OF 2024
2
JUDGMENT
(Dated this the 19th day of July, 2024) The petitioners have approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the 1st respondent - Bank to the petitioners invoking the provisions of the Kerala Co-operative Societies Act, 1969.
2. The Bank paid ₹7,00,000/- to the petitioners as Mortgage Loan in the year 2017. The petitioners state that though the petitioners made remittances promptly during the initial repayment period of the financial advance, they could not pay the instalments promptly later due to some financial problems. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioners.
3. Though the petitioners requested the Bank to permit the petitioners to repay the overdue amounts in easy WP(C) NO. 23353 OF 2024 3 monthly instalments, the Bank authorities were not yielding. The authorities, instead, started coercive proceedings, invoking the provisions of the Kerala Co-operative Societies Act, 1969 and issued Ext.P1 notice.
4. The petitioners state that they are still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the respondent is permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioners, they will be put to untold hardship and loss.
5. Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioners. On behalf of the respondent, it is submitted that the loan was given to the petitioners in the year 2017. The petitioners committed default in repaying the loan .
6. The Bank repeatedly reminded the petitioners and required them to clear the dues. The petitioners deliberately omitted to do so. In the circumstances, the Bank had no other WP(C) NO. 23353 OF 2024 4 go than to proceed against the petitioners invoking the provisions of the Kerala Co-operative Societies Act, 1969. The impugned Ext.P1 sale notice was issued in these circumstances. The petitioners have not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.
7. The Standing Counsel, however, submitted that if the petitioners are ready and willing to remit the outstanding amount in instalments, a short breathing time can be granted to the petitioners to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioners as on 19.07.2024 is ₹ 11,40,569/-.
8. I have heard the counsel for the petitioners and the Standing Counsel representing the Bank. I have also heard the Government Pleader representing the official respondents.
9. The specific case of the petitioners is that the petitioners have been making the repayment and maintaining WP(C) NO. 23353 OF 2024 5 the loan account initially. The default in repayment occurred lately due to reasons beyond the control of the petitioners. The petitioners have provided substantial security which will safeguard the interest of the Bank.
10. In the facts and circumstances of the case, I am inclined to dispose of the writ petition giving a short and reasonable time to the petitioners to clear off the liability.
11. The writ petition is therefore disposed of with the following directions:
(i) The petitioners shall remit the outstanding amount ₹11,40,569/- in 12 equal and consecutive monthly instalments along with accruing interest and other Bank charges, if any.
(ii) The first of such instalments shall be paid on or before 19.08.2024.
(iii) If the petitioners commit default in making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the petitioners in accordance with law.
WP(C) NO. 23353 OF 2024 6
(iv) If the petitioners make payments as directed above, coercive proceedings, if any, against the petitioners shall stand deferred.
Sd/-
N.NAGARESH JUDGE rp WP(C) NO. 23353 OF 2024 7 APPENDIX OF WP(C) 23353/2024 PETITIONER EXHIBITS Exhibit P 1 TRUE COPY OF THE SALE NOTICE DATED 10/05/2024 ISSUED BY THE 3RD RESPONDENT Exhibit P 2 TRUE COPY OF THE NEWSPAPER PUBLICATION MADE BY THE 3RD RESPONDENT IN MALAYALA MANORAMA NEWSPAPER DATED 21/06/2024