Kerala High Court
Suresh vs Ayyanthol Service Co- Operative Bank on 1 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:81485
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 1ST DAY OF NOVEMBER 2024 / 10TH KARTHIKA, 1946
WP(C) NO. 2909 OF 2024
PETITIONER:
SURESH
AGED 53 YEARS
S/O. M. K PRABHAKARAN,
MUNDAMTHARA HOUSE,
KECHERY P. O,
ERANELLUR, THRISSUR,
PIN - 680501
BY ADVS.
SREEKANTH S.NAIR
SANDEEP P JOHNSON
RESPONDENTS:
1 AYYANTHOL SERVICE CO- OPERATIVE BANK
LTD. NO. 494 AYANTHOL,
THRISSUR, REPRESENTED BY ITS MANAGER,
PIN - 680003
2 SPECIAL SALES OFFICER
AYYANOTHOL SCB LTD, NO. 494,
ASSISTANT REGISTRAR OFFICE,
SAHAKARANA BHAVAN, AYYANOTHOL,
THRISSUR, PIN - 680003
2024:KER:81485
WP(C) No.2909 of 2024
2
BY ADVS.
A.S.DILEEP
P.BINOD(K/647/1987)
K.Y.SUDHEENDRAN(K/000625/1987)
SUSEELA DILEEP(S-1307)
SUDEEP ARAVIND PANICKER(K/000517/2018)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 01.11.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
2024:KER:81485
WP(C) No.2909 of 2024
3
JUDGMENT
Dated this the 1st day of November, 2024 The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Ayyanthol Service Co-operative Bank to the petitioner, invoking the provisions of the Kerala Co-operative Societies Act, 1969.
2. The Bank paid ₹15 lakhs to the petitioner as Mortgage Loan in the year 2013. 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 later. It happened due to reasons beyond the control of the petitioner.
3. Though the petitioner requested the Bank to permit the petitioner to repay the overdue amounts in easy 2024:KER:81485 WP(C) No.2909 of 2024 4 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.P6 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 2013. The petitioner committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioner and required him to clear the dues. The petitioner deliberately 2024:KER:81485 WP(C) No.2909 of 2024 5 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.P6 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 make a substantial payment soon and remit the balance outstanding amount immediately thereafter, 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 01.11.2024 is ₹33,97,677/-.
8. I have heard the counsel for the petitioner and the Standing Counsel representing the Bank.
9. The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the 2024:KER:81485 WP(C) No.2909 of 2024 6 loan account initially. The default in repayment of the loan 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 outstanding amount of ₹33,97,677/- in 15 consecutive and equal monthly instalments along with accruing interest and other Bank charges, if any. First of such instalments shall be paid on or before 02.12.2024.
(ii) If the petitioner commits single default in making payments as directed above, the 2024:KER:81485 WP(C) No.2909 of 2024 7 Bank will be at liberty to continue with the coercive proceedings against the petitioner in accordance with law.
(iii) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred.
Sd/-
N.NAGARESH JUDGE spk 2024:KER:81485 WP(C) No.2909 of 2024 8 APPENDIX OF WP(C) 2909/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF DISCHARGE SUMMARY DATED 12.01.2022 ISSUED TO THE PETITIONER. Exhibit P2 TRUE COPY OF DISCHARGE SUMMARY DATED 25.03.2022 ISSUED TO THE PETITIONER. Exhibit P3 TRUE COPY OF DISCHARGE SUMMERY DATED 17.06.2022 ISSUED TO THE PETITIONER. Exhibit P4 TRUE COPY OF DISCHARGE SUMMERY DATED 18.01.2023 Exhibit P5 TRUE COPY OF DISCHARGE SUMMERY DATED 08.12.2023 ISSUED TO THE PETITIONER Exhibit P6 TRUE COPY OF NOTICE DATED 19.12.2023 ISSUED TO THE PETITIONER BY THE 2ND RESPONDENT.