Kerala High Court
Shabeer Ali vs The Special Sale Officer, Calicut North ... on 22 January, 2026
WP(C)NOs.39372 OF 2024 &
21605 OF 2025 1 2026:KER:5755
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
THURSDAY, THE 22ND DAY OF JANUARY 2026 / 2ND MAGHA, 1947
WP(C) NO. 39372 OF 2024
PETITIONER/S:
KARUVANTHIRUTHY SERVICE CO-OPERATIVE BANK
LIMITED.NO. D 2638
KARUVANTHIRUTHY, KOZHIKODE- , REPRESENTED BY THE
SECRETARY, RESIDING AT KODITHODI HOUSE, MORAYUR
PANCHAYATH, ARIMBRA.P.O., MALAPPURAM, PIN - 673638
BY ADVS.
SRI.P.P.JACOB
SHRI.JOHANS JACOB P.
RESPONDENT/S:
1 SHABEER ALI
S/O KUNJI MUHAMMED, PYARI MANZIL, NEAR POOVANOOR
MOSQUE, RAMANATTUKARA, CALICUT, PIN - 673633
2 THE ARBITRATOR/SPECIAL SALE OFFICER
MUKKAM SCB GROUP, OFFICE OF THE ASSISTANT REGISTRAR
OF COOPERATIVE SOCIETIES (G), KOZHIKODE, PIN -
697004
3 THE REGISTRAR OR CO-OPERATIVE SOCIETIES
THIRUVANANTHAPURAM JAWAHAR SAHAKARANA BHAVAN, DPI
JUNCTION, THYCAUD.P.O., THIRUVANANTHAPURAM, PIN -
695014
4 THE KERALA CO-OPERATIVE TRIBUNAL
SAHAKARANA BHAVAN, POOJAPPURA, THIRUVANANTHAPURAM
-REPRESENTED BY ITS SECRETARY, PIN - 695001
WP(C)NOs.39372 OF 2024 &
21605 OF 2025 2 2026:KER:5755
BY ADV SRI.K.ABOOBACKER SIDHEEQUE
OTHER PRESENT:
SMT. MABLE C KURIAN (GP)
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
22.01.2026, ALONG WITH WP(C).21605/2025, THE COURT ON THE
SAME DAY DELIVERED THE FOLLOWING:
WP(C)NOs.39372 OF 2024 &
21605 OF 2025 3 2026:KER:5755
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
THURSDAY, THE 22ND DAY OF JANUARY 2026 / 2ND MAGHA, 1947
WP(C) NO. 21605 OF 2025
PETITIONER/S:
SHABEER ALI
AGED 49 YEARS
S/O. KUNJI MUHAMMED,
PYARI MANZIL,
NEAR POOVANOOR MOSQUE,
RAMANATTUKARA,
RAMANATTUKARA P.O.,
KOZHIKODE DISTRICT,
PIN - 673633
BY ADV SRI.K.ABOOBACKER SIDHEEQUE
RESPONDENT/S:
1 THE SPECIAL SALE OFFICER,
CALICUT NORTH SCB GROUP
OFFICE OF THE ASSISTANT REGISTRAR OF
CO-OPERATIVE SOCIETIES (GENERAL),
PUTHIYARA,
KOZHIKODE DISTRICT,
PIN - 673004
2 THE KARUVAN THIRUTHI SERVICE CO-OPERATIVE
BANK LTD. NO. D-2638
KARUVANTHIRUTHI,
FEROKE,
KOZHIKODE DISTRICT,
REPRESENTED BY ITS SECRETARY,
PIN - 673631
WP(C)NOs.39372 OF 2024 &
21605 OF 2025 4 2026:KER:5755
OTHER PRESENT:
SRI. P.P JACOB (RES:)
SMT. MABLE C KURIAN (GP)
K.A.ABOOBACKER SIDHEEQUE
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
22.01.2026, ALONG WITH WP(C).39372/2024, THE COURT ON THE
SAME DAY DELIVERED THE FOLLOWING:
WP(C)NOs.39372 OF 2024 &
21605 OF 2025 5 2026:KER:5755
JUDGMENT
WP(C)No.39372 of 2024 has been filed by the Karuvanthiruthy Service Co-operative Bank Limited challenging Ext.P4 order of the Kerala Co-operative Tribunal, Thiruvananthapuram, in Revision Petition No.135 of 2023 to the extent, it reduces the post decree interest to 10% of the principal amount in the place of 15.5% directed to be paid in terms of the award dated 20.12.2022 in ARC No.8619 of 2022 on the file of the second respondent.
2. The brief facts of the case are that the first respondent availed credit facilities from the petitioner bank. On default being committed the bank initiated proceedings under Section 69 of the Kerala Co-operative Societies Act, 1969 (in short 'the 1969 Act') and obtained Ext.P3 award determining the liability of the petitioner in the following manner:
"എതിർകക്ഷികൾ ഇന്നേദിവസം വരെ അടക്കേണ്ട 3142742.00 (മുപ്പത്തി ഒന്ന് ലക്ഷത്തി നാൽപ്പത്തി രണ്ടായിരത്തി എഴുന്നൂറ്റി നാൽപ്പത്തി രണ്ട് രൂപ) അതിൽ മുതൽ ബാക്കി 2000000.00 (ഇരുപത് ലക്ഷം രൂപ മാത്രം) 21.12.2022 മുതൽ 15.50 % പലിശയും മേലാൽ വരുന്ന ചെലവുകളും അന്യായക്കാരന് കൊടുക്കുവാൻ വിധിയാവുന്നു. അല്ലാത്ത പക്ഷം 1969 ലെ കേരള സഹകരണ നിയമം വകുപ്പ് 76 പ്രകാരം എതിർകക്ഷികളിൽ നിന്നും അവരുടെ സ്ഥാവര ജംഗമ സ്വത്തുക്കൾ ജപ്തി ചെയ്ത് വിൽപ്പന നടത്തി തുക ഈടാക്കിയെടുക്കുന്നതിന് ഇതിനാൽ വിധിയാകുന്നു. 2022 ഡിസംബർ 20 തിയ്യതിയിൽ നമ്മുടെ കൈയൊപ്പും മുദ്രയും പതിച്ചിരിക്കുന്നു.
WP(C)NOs.39372 OF 2024 &
21605 OF 2025 6 2026:KER:5755
തെളിവിനായി ഹാജരാക്കിയ അക്കമിട്ട പ്രമാണങ്ങളുടെ പട്ടിക
1.കട0വായ്പ്പാധാര0
2.വായ്പ്പാ ലഡ്ജറിന്റെ ശരി പകർപ്പ്
3. അന്യായക്കാരന്റെ മൊഴി
3. It can be seen from Ext.P3 that the Arbitrator awarded post award interest only on the principal sum of Rs.20 lakh. However, the Arbitrator fixed the rate of interest on the said sum at 15.50% which is said to be the contractual rate of interest plus 2% penal interest. The petitioner bank did not challenge Ext.P3 before the Tribunal. However, the first respondent filed Revision Petition No.135 of 2023 which was disposed of by the Tribunal confirming the award but however reducing the post award interest fixed by the Arbitrator to 10%.
4. The learned counsel appearing for the petitioner bank submits that while the bank did not challenge the award of the Arbitrator fixing interest for the period after the date of the award only on the principal sum, the bank is aggrieved by the fact that the Tribunal reduced the rate of interest fixed by the Arbitrator from 15.50% to 10%. It is submitted that while the penal interest could have been waived by the Tribunal, it could not have reduced the post award interest below the contractual rate of interest. It is submitted that, if the interest is WP(C)NOs.39372 OF 2024 & 21605 OF 2025 7 2026:KER:5755 reduced below the contractual rate, the petitioner bank will be put to serious prejudice, injury and hardship.
5. The learned counsel appearing for the first respondent vehemently submits that it is within the discretion of the Tribunal to reduce interest for the period post the award and it is not open to the petitioner bank to contend that such interest must also be awarded at the contractual rate.
6. Having heard the learned counsel appearing for the petitioner and the learned counsel appearing for the first respondent, I am of the view that there is considerable merit in the contention taken by the learned counsel appearing for the petitioner that the Tribunal should have awarded post award interest atleast at the contractual rate. It is pertinent to note that the Arbitrator had awarded such interest only on the principal sum and not on the amount payable to the bank as on the date of filing of the application seeking arbitration. No principle of law has been pointed out to show that the award of interest post the award by limiting such interest to the principal amount was justified in law. However, since the bank did not challenge Ext.P3 award in any manner it is not necessary for this Court to examine the said question in detail. Therefore, Ext.P4 order of the Tribunal in Revision Petition WP(C)NOs.39372 OF 2024 & 21605 OF 2025 8 2026:KER:5755 No.135 of 2023 will stand modified by directing that the interest on the principal sum of Rs.20 lakh from 21.12.2022 shall be 13.50% (the contractual rate of interest) and not 10% as directed by the Tribunal. The amount to be paid by the first respondent in terms of this judgment shall be communicated by the petitioner bank within a period of ten days from the date of receipt of a certified copy of this judgment.
7. WP(C)No.21605 of 2025 is filed by the first respondent in WP(C)No.39372 of 2024 essentially seeking a direction to the bank to permit him to clear the liability in some instalments. Since WP(C)No.39372 of 2024 has been disposed of as above, it is directed that on receipt of the communication from the bank regarding the amount to be paid, the petitioner in WP(C)No.21605 of 2025/first petitioner in WP(C) No.39372 of 2024 shall clear the said liability in twenty(20) installments in the following manner:-
(i) The petitioner shall pay the amount to be paid in terms of the communication to be issued by the bank in twenty(20) equated monthly installments along with any accrued interest, costs and charges;
(ii) The first installment shall be paid on or before 19.02.2026.
The subsequent installments shall be paid on or before the last working WP(C)NOs.39372 OF 2024 & 21605 OF 2025 9 2026:KER:5755 day of the succeeding months;
(iii) Petitioner shall continue to pay the regular EMI's/installments on the due date without fail;
(iv) In the event of default of any one installment, the respondent bank shall be entitled to proceed in accordance with the law;
(v) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.
The writ petition is disposed of as above.
Sd/-
GOPINATH P., JUDGE
rkj
WP(C)NOs.39372 OF 2024 &
21605 OF 2025 10 2026:KER:5755
APPENDIX OF WP(C) NO. 39372 OF 2024
PETITIONER EXHIBITS
Exhibit P1 TRUE PHOTOCOPY OF THE AGREEMENT EXECUTED
BY THE FIRST RESPONDENT WITH THE
PETITIONER DATED 8.10.2018
Exhibit P2 TRUE PHOTOCOPY OF THE CIRCULAR NO. 51/17
DATED 16.12.17 ISSUED BY THE REGISTRAR OF CO-OPERATIVE SOCIETIES Exhibit P3 TRUE PHOTOCOPY OF THE AWARD IN A.R.C 8619/22 DATED 20.12.22 Exhibit P4 TRUE PHOTOCOPY OF THE ORDER DATED 28.2.24 IN R.P 135/23 TO THE FOURTH RESPONDENT WP(C)NOs.39372 OF 2024 & 21605 OF 2025 11 2026:KER:5755 APPENDIX OF WP(C) NO. 21605 OF 2025 PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE ORDER DATED 28.02.2024 IN REVISION PETITION NO. 135/2023 OF THE KERALA CO-OPERATIVE TRIBUNAL, THIRUVANANTHAPURAM.
Exhibit-P2 A TRUE COPY OF THE NOTICE DATED 23.09.2024 ISSUED BY THE FIRST RESPONDENT.
Exhibit-P3 A TRUE COPY OF THE REPRESENTATION DATED 08.10.2024 SUBMITTED BY THE PETITIONER BEFORE FIRST RESPONDENT.
Exhibit-P4 A TRUE COPY OF THE INTERIM ORDER DATED 23.10.2024 IN W.P.(C) NO. 37209 OF 2024 OF THIS HON'BLE COURT.
Exhibit-P5 A TRUE COPY OF THE JUDGMENT DATED 06.02.2025 IN W.P.(C) NO. 37209 OF 2024 OF THIS HON'BLE COURT.
Exhibit-P6 A TRUE COPY OF THE NOTICE DATED 21.05.2025 ISSUED BY THE FIRST RESPONDENT.
Exhibit-P7 A TRUE COPY OF THE NOTICE DATED 23.09.2025 ISSUED BY THE FIRST RESPONDENT.