Razia vs The Aluva Co-Operative ...
2023 Latest Caselaw 8527 Ker

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
                 THE HONOURABLE MR. JUSTICE GOPINATH P.
        MONDAY, THE 7TH DAY OF AUGUST 2023 / 16TH SRAVANA, 1945
                        WP(C) NO. 23468 OF 2023
PETITIONER/S:

            RAZIA
            AGED 60 YEARS
            W/O HAMZA, CHETTUNGAL HOUSE, PUDUVASSERY,
            NEDUMBASSERY.P.O., ERNAKULAM DISTRICT,, PIN - 683585
            BY ADV K.G.CLEETUS


RESPONDENT/S:

    1       THE ALUVA CO-OPERATIVE AGRICULTURAL AND RURAL
            DEVELOPMENT BANK LTD. NO.E. 87
            ALUVA.P.O., ERNAKULAM DISTRICT, REPRESENTED BY
            SECRETARY, PIN - 683101
    2       THE SECRETARY
            THE ALUVA CO-OPERATIVE AGRICULTURAL AND RURAL
            DEVELOPMENT BANK LTD. NO.E. 87, ALUVA.P.O., ERNAKULAM
            DISTRICT,, PIN - 683101
    3       JUNIOR INSPECTOR/SPECIAL SALE OFFICER
            ALUVA CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT
            BANK LTD. NO.E. 87, ALUVA.P.O., ERNAKULAM DISTRICT,,
            PIN - 683101
    4       JOINT REGISTRAR (GENERAL),
            CO-OPERATIVE SOCIETIES, 5TH FLOOR, NEW BLOCK, CIVIL
            STATION, KAKKANAD.P.O.. ERNAKULAM DISTRICT, PIN -
            682030
            BY ADVS.
            SHAJI CHIRAYATH
            JIJI M. VARKEY(J-650)
            M.K.SAFEELA BEEVI(S-1575)
            M.M.SHAJAHAN(K/1204-E/2010)
            SIMSAR UL HAQ K.Y(K/001810/2023)

            SMT. RESHMI THOMAS (GP)


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
07.08.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WPC No.23468 of 2023

                                         2



                                   JUDGMENT

The petitioner availed credit facilities from the

respondent bank. On default being committed, proceedings

have been initiated against the petitioner under the

provisions of the Kerala State Co-operative Agricultural and

Rural Development Bank Act, 1984 (in short 'CARD Act'),

prompting the petitioner to approach this Court by filing the

above writ petition.

2. It is a case of the learned counsel appearing

for the petitioner that there has been an illegal and

impermissible charging of interest on the loan account. It is

submitted that nearly Rs.10.66 lakh has been levied

unauthorizedly and against the terms of the agreement

entered into between the petitioner and the respondent bank.

It is submitted that this is clear from Ext.P3 loan account

statement issued by the respondent bank.

3. The learned counsel appearing for the

respondent bank would submit that, if the petitioner has any

dispute regarding the amount of interest charged by the WPC No.23468 of 2023

respondent bank, it is for the petitioner to establish the same

by filing a suit and seeking appropriate reliefs. It is submitted

that the suit is not barred at the instance of the petitioner

under the provisions of the CARD Act. It is submitted that the

present liability is Rs.53,19,445/- (Rupees Fifty Three lakh

Nineteen Thousand Four Hundred and Forty Five only) after

giving credit to the amount of Rs.3 lakh remitted by the

petitioner towards the condition imposed in the interim order

dated 20.07.2023. It is submitted that the petitioner can be

permitted to clear the liability in some instalments and in the

meanwhile, if the petitioner is to initiate civil proceedings in

the matter, the parties can be governed by the terms of the

orders to be issued by the Civil Court.

4. Having regard to the submissions made by the

learned counsel for the petitioner and learned counsel

appearing for the first respondent bank, this writ petition will

stand disposed of permitting the petitioner to clear the

present liability of Rs.53,19,445/- (Rupees Fifty Three lakh

Nineteen Thousand Four Hundred and Forty Five only) in WPC No.23468 of 2023

twelve (12) instalments commencing from 05.09.2023 along

with any accrued interest and charges.

In the result, the writ petition is disposed of with

the following directions:

(i) The outstanding amount of Rs.53,19,445/-

(Rupees Fifty Three lakh Nineteen Thousand Four Hundred

and Forty Five only) along with any accrued interest/costs

shall be repaid in twelve (12) monthly instalments.

(ii) The first instalment shall be paid on or before

05.09.2023 and subsequent instalments shall be paid on or

before the 5th day of every succeeding months.

(iii) In the event of default of any one instalment,

the respondent bank shall be entitled to proceed in

accordance with law.

(iv) In order to enable the petitioner to repay the

entire amounts, all coercive proceedings shall be kept in

abeyance.

Since the petitioner is disputing liability for sum of

approximately Rs.10.66 lakh. It is made clear that

notwithstanding the directions contained in this judgment, it WPC No.23468 of 2023

will be open to the petitioner to agitate the same in

accordance with the law and if any such proceedings are

initiated by the petitioner, the same shall be adjudicated by

the competent Court/Tribunal without being in any manner

affected by the fact that this Court has permitted the

petitioner to clear off the entire liability in instalments.

The writ petition is disposed of as above.

Sd/-

GOPINATH P., JUDGE rkj WPC No.23468 of 2023

APPENDIX OF WP(C) 23468/2023

PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE SALE NOTICE IN E.P.

NO.1387 DATED 20.2.2023 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER Exhibit P2 TRUE COPY OF THE RECEIPT NO.00950 DATED 15.3.2023 ISSUED BY THE 1ST RESPONDENT FOR THE PAYMENT OF RS.50,000/- IN THE NAME OF PETITIONER Exhibit P3 TRUE COPY OF THE LOAN ACCOUNT STATEMENT AS ON 21.03.2023 ISSUED TO THE PETITIONER (MEMBER NO.A16289) FROM THE 1ST RESPONDENT BANK Exhibit P4 TRUE COPY OF THE REPRESENTATION DATED 21.4.2023 SENT BY PETITIONER TO THE 2ND RESPONDENT Exhibit P5 TRUE COPY OF THE REPLY NO.1423/2023-24 DATED 3.5.2023 SENT BY 2ND RESPONDENT TO THE PETITIONER Exhibit P6 COPY OF THE ACCOUNT STATEMENT AS ON 2.5.2023 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER (MEMBER NO.A16289)