Kerala High Court
Koya.P vs Assistant Registrar Of Co-Operative ... on 15 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:85782
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 15TH DAY OF NOVEMBER 2024 / 24TH KARTHIKA, 1946
WP(C) NO. 29589 OF 2022
PETITIONER:
KOYA.P
AGED 55 YEARS
PUTHANPURAYIL HOUSE, CHERUKODE P.O,
VALLAPUZHA PALAKKAD, PIN - 679336.
BY ADV LATHEEF P.K.
RESPONDENTS:
1 ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES(G),
OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE
SOCIETIES (G), OTTAPPALAM, PALAKKAD PIN - 679101.
2 SALE OFFICER
ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES(G),
OFFICE OF THE ASSISTANT REGISTRAR OF
CO-OPERATIVE SOCIETIES (G), OTTAPPALAM,
PALAKKAD, PIN - 679101.
3 VALLAPUZHA SERVICE CO-OPERATIVE BANK LTD
NO - F.1207. NELLAYA P.O, NELLAYA ,PALAKKAD
REPRESENTED BY SECRETARY., PIN - 679335.
BY ADVS.
SRI.P.N.MOHANAN
SMT.MABLE C KURIAN, SR.GOVERNMENT PLEADER
W.P.(C) No.29589 of 2022
:2:
2024:KER:85782
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 15.11.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
W.P.(C) No.29589 of 2022
:3:
2024:KER:85782
JUDGMENT
Dated this the 15th day of November, 2024 The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Vallapuzha Service Co-operative Bank to the petitioner, invoking the provisions of the Kerala Co-operative Societies Act, 1969.
2. The Bank paid ₹22 lakhs to the petitioner as loan in the year 2018. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, he could not pay the instalments promptly later. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioner.
W.P.(C) No.29589 of 2022:4:
2024:KER:85782
3. Though the petitioner requested the Bank to permit the petitioner to repay the overdue amounts in easy 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 petitioner states that he is 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 respondents are permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, he 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 petitioner. On behalf of the respondents, it is submitted that the loan was given to the petitioner in the year 2018. The petitioner committed default in repaying the loan. W.P.(C) No.29589 of 2022 :5:
2024:KER:85782
6. The Bank repeatedly reminded the petitioner and required him to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the Bank had no other go than to proceed against the petitioner invoking the provisions of the Kerala Co-operative Societies Act, 1969. The impugned Ext.P1 notice was issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.
7. The Standing Counsel, however, submitted that if the petitioner is ready and willing to remit the balance overdue amount in instalments, a short breathing time can be granted to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioner as on 11.11.2024 is ₹32,85,862/- and the overdue amount is ₹25,52,602/-.
8. I have heard the learned Counsel for the petitioner and the learned Standing Counsel representing the W.P.(C) No.29589 of 2022 :6: 2024:KER:85782 Bank.
9. The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the loan account initially. The default in repayment occurred lately due to reasons beyond the control of the petitioner. The petitioner has 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 petitioner to clear off the liability.
11. The writ petition is therefore disposed of with the following directions:
(i) The petitioner shall remit the overdue amount of ₹25,52,602/- in 12 equal and consecutive monthly instalments along with accruing interest and other Bank charges, if any. The first of such instalments shall be paid W.P.(C) No.29589 of 2022 :7: 2024:KER:85782 on or before 16.12.2024.
(ii) If the petitioner commits default in making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the petitioner in accordance with law.
(iii) The petitioner shall also pay current EMIs along with the aforesaid payments.
(iv) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred.
Sd/-
N. NAGARESH JUDGE ams W.P.(C) No.29589 of 2022 :8: 2024:KER:85782 APPENDIX OF WP(C) 29589/2022 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE NOTICE OF SALE DATED 23.08.2022 ISSUED BY THE 2ND RESPONDENT Exhibit P2 A TRUE COPY OF TAX RECEIPT DATED 14.09.2022 ISSUED VILLAGE OFFICE VALLAPPUZHA Exhibit P3 A TRUE COPY OF THE INTERIM ORDER DATED 1.8.2022 IN W. P (C) NO: 24618/2022