Sivan vs The Sreekrishnapuram Service ...
2023 Latest Caselaw 13324 Ker

Kerala High Court

Sivan vs The Sreekrishnapuram Service ... on 18 December, 2023

Author: N.Nagaresh

Bench: N.Nagaresh

         IN THE HIGH COURT OF KERALA AT ERNAKULAM
                            PRESENT
              THE HONOURABLE MR.JUSTICE N.NAGARESH
MONDAY,THE 18TH DAY OF DECEMBER 2023 / 27TH AGRAHAYANA, 1945
                    WP(C) NO. 30698 OF 2023
PETITIONER:

         SIVAN
         AGED 51 YEARS
         S/O KUNJIEKKAN, NADUPARAMBIL HOUSE, POMBRA P.O,
         PALAKKAD DISTRICT, PIN - 678595

         BY ADV ARUN MATHEW VADAKKAN
RESPONDENTS:
    1     THE SREEKRISHNAPURAM SERVICE CO-OPERATIVE BANK
          LTD NO.F.1213
          KOOTTILAKKADAVU BRANCH,
          REPRESENTED BY ITS SECRETARY, KARAKURISSI ROAD,
          OTTAPPALAM, POMBRA PO,
          PALAKKAD DISTRICT, PIN - 678595
    2     THE SECRETARY,
          THE SREEKRISHNAPURAM SERVICE CO-OPERATIVE BANK
          LTD NO.F.1213, KOOTTILAKKADAVU BRANCH,
          KARAKURISSI ROAD, OTTAPPALAM, POMBRA PO,
          PALAKKAD DISTRICT, PIN - 678595
    3     THE SPECIAL SALE OFFICER,
          SHORNUR SCB GROUP,
          OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE
          SOCIETIES (G), OTTAPPALAM PO,
          PALAKKAD DISTRICT, PIN - 679102

         BY ADVS.
         T.K.SANDEEP
         VEENA HARIKUMAR(K/1379/2021)
         SWETHA R.(K/002236/2022)

     THIS WRIT PETITION       (CIVIL) HAVING COME UP     FOR
ADMISSION ON 18.12.2023,      THE COURT ON THE SAME      DAY
DELIVERED THE FOLLOWING:
 WP(C) No.30698 of 2023
                              2


                         JUDGMENT

Dated this the 18th day of December, 2023

The petitioner has approached this Court aggrieved by

the coercive proceedings for recovery of financial advance

made by the Sreekrishnapuram Service Co-operative Bank

Limited to the petitioner, invoking the provisions of the Kerala

Co-operative Societies Rules, 1969.

2. The Bank paid ₹77,000/- to the petitioner as

Mortgage Loan in the year 2014. The petitioner states that

though the petitioner made remittances promptly during the

initial repayment period of the financial advance, he could not

pay the repayment instalments promptly later due to Covid-19

pandemic. 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 monthly

instalments, the Bank authorities were not yielding. The

authorities, instead, started coercive proceedings, invoking

the provisions of the Kerala Co-operative Societies Rules,

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 2014. 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

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 Rules, 1969.

The impugned Ext.P1 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 total 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 is ₹1,56,715/-.

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 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 ₹1,56,715/- in six

consecutive and equal monthly installments

along with accruing interest and other Bank

charges, if any. First of such installments

shall be paid on or before 18.01.2024.

(ii) If the petitioner commits any 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) If the petitioner makes payments as

directed above, coercive proceedings, if any,

against the petitioner shall stand deferred.

Sd/-

N.NAGARESH JUDGE hmh

APPENDIX OF WP(C) 30698/2023

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF THE SALE NOTICE DATED 10.08.2023 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER