Kerala High Court
Mathil Service Co-Operative Bank Ltd vs Registrar Of Co-Operative Services on 12 June, 2024
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
WEDNESDAY, THE 12TH DAY OF JUNE 2024 / 22ND JYAISHTA, 1946
WP(C) NO. 20564 OF 2013
PETITIONER/S:
THE MATHIL SERVICE CO-OPERATIVE BANK LTD.
NO.F 1518, P.O.MATHIL, VIA PAYYANNUR, KANNUR - 670 307,
REPRESENTED BY ITS PRESIDENT, MR.K.M.BALAKESAVAN.
BY ADVS.
SRI.V.B.HARI NARAYANAN
SMT.RUBY P.PAULOSE
RESPONDENT/S:
1 THE REGISTRAR OF CO-OPERATIVE SOCIETIES
TRIVANDRUM - 695 001.
2 THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (AUDIT)
TALIPARAMBU, KANNUR DISTRICT - 670 144.
3 GENERAL MANAGER
KANNUR DISTRICT CO-OPERATIVE BANK, KANNUR - 670 001.
ADDL.R4 THE NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT, KERALA
REGIONAL OFFICE, PUNNEN ROAD, STATUTE,
THIRUVANANTHAPURAM 695 001
[IS IMPLEADED AS PER ORDER DATED 12.06.2024 IN I.A.NO.1 OF
2018]
BY ADVS.
GOVERNMENT PLEADER
SMT.M.MEENA JOHN
K.P.SUJESH KUMAR
SRI.M.SASINDRAN, SC, KANNUR DISTRICT CO.OP. BANK
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 12.06.2024,
ALONG WITH WP(C).20963/2013, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
W.P.(C)NOS.20564 & 20963 of 2013
2
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
WEDNESDAY, THE 12TH DAY OF JUNE 2024 / 22ND JYAISHTA, 1946
WP(C) NO. 20963 OF 2013
PETITIONER/S:
PERINGOME SERVICE CO-OPERATIVE BANK LTD.
NO.F.1235, HEAD OFFICE, PERINGOME, P.O.PERINGOME,
KANNUR - 670 354, REPRESENTED BY ITS SECRETARY T.V.RAMESAN.
BY ADV DR.K.P.PRADEEP
RESPONDENT/S:
1 STATE OF KERALA, REPRESENTED BY THE SECRETARY CO-OPERATION,
GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM - 695 001.
2 REGISTRAR OF CO-OPERATIVE SOCIETIES
DEPARTMENT OF CO-OPERATION, GOVERNMENT OF KERALA,
THIRUVANANTHAPURAM - 695 001.
3 JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
(GENERAL), DEPARTMENT OF CO-OPERATION, KANNUR - 670 302.
4 KANNUR DISTRICT CO-OPERATIVE BANK LTD.
HEAD OFFICE, KANNUR - 670 001, REPRESENTED BY ITS GENERAL
MANAGER.
5 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT-
REGIONAL OFFICE, KERALA POST BOX NO.5613, PUNNEN ROAD, STATUE,
THIRUVANANTHAPURAM - 695 039, REPRESENTED BY ITS CHIEF GENERAL
MANAGER.
BY ADVS.
GOVERNMENT PLEADER
SMT.M.MEENA JOHN
SRI.K.P.SUJESH KUMAR
SRI.LEO GEORGE
SRI.P.B.SURESH KUMAR SR.
SRI.M.SASINDRAN, SC, KANNUR DISTRICT CO.OP. BANK
SMT.K.B.SONY-GP ,SRI.BIMAL K NATH-SR.GP
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 12.06.2024,
ALONG WITH WP(C).20564/2013, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
W.P.(C)NOS.20564 & 20963 of 2013
3
JUDGMENT
The petitioners in both these writ petitions are Service
Co-operative Banks who gave short term loans to its members
under the Kissan Credit Card Cash Credit Scheme. They closed
the loan accounts of some of their members as per the
Agricultural Debt Waiver and Debt Relief Scheme, 2008, (for
short, Scheme), which was implemented vide Circular dated
28.05.2008 by the Ministry of Finance, a copy of the said circular
is produced as Ext.R3(f) in W.P.(C)No. 20564/2013.
2. Their grievance is that the Kannur District Co-operative
Bank (presently Kerala Bank) who is arrayed as respondent No.3
in W.P.(c)No.20564/2013 and respondent No.4 in
W.P.(C)No.20963/2013 has issued notices to the petitioners
demanding huge amounts alleging irregularities in sanctioning
the benefit under the Scheme.
3. As per Ext.P2 in W.P.(C)No.20564/2013 dated
W.P.(C)NOS.20564 & 20963 of 2013
29.07.2013 an amount of Rs.25,18,376/- is demanded from the
petitioner therein alleging irregularities in sanctioning the
benefit under the Scheme. The petitioner submitted Ext.P3
objection dated 08.08.2013 and according to the petitioner,
without considering the objection, Ext.P4 demand is issued to pay
the amount immediately.
4. As per Ext.P10 dated 29.7.2013 produced in
W.P.(C)No.20963/2013, an amount of Rs.27,09,547/- is demanded
from the petitioner therein alleging irregularities in sanctioning
the benefit under the Scheme. The petitioner submitted Ext.P11
objection. According to the petitioner, without considering the
objection, Ext.P12 Demand is issued to pay the amount
immediately.
5. The petitioners are challenging the aforesaid demands
on the grounds that the benefits under the Scheme was granted
to their members only after getting approval from the third
respondent and that the present proceedings are initiated long
after granting of the benefit and hence it is unsustainable. The
learned counsels for the petitioners pointed out that the
allegation is with respect to the eligibility of persons in
accordance with clause 2(i) of the Scheme. They submitted that
W.P.(C)NOS.20564 & 20963 of 2013
they released the benefits only after ensuring that the members
are eligible in accordance with clause 2(i) of the Scheme.
6. The learned counsel for the Bank submitted that the
Bank conducted enquiry with respect to the irregularities in
sanctioning the benefits on account of the direction issued by the
NABARD, who was the nodal agency for implementing the
Scheme. According to the learned counsel, in the case of the
petitioner in W.P.(C)No.20564/2013, they found that the benefits
under the Scheme were given to 126 members who are ineligible
and in the case of the petitioner in W.P.(C)No.20963/2013, it is
199 members who are ineligible.
7. I find from the impugned demands that the demands
were made on the basis of a unilateral enquiry conducted by the
officers of Kannur District Co-operative Bank, without the
participation of the petitioners. The submission of the petitioners
is that they will be able to convince that the benefits are given to
eligible persons, if an opportunity is given to them. I find that,
though both the petitioners submitted their explanations, the
same is not seen considered in the subsequent demands.
Accordingly, I set aside the orders impugned in these writ
petitions on condition that the petitioners shall submit necessary
W.P.(C)NOS.20564 & 20963 of 2013
details before the competent officer of the Kannur District Co-
operative Bank Ltd (presently Kerala Bank) to convince that all
the benefits were given in accordance with the Scheme within a
period of one month from the date of receipt of a copy of this
judgment and the competent officer of the Kannur District Co-
operative Bank Ltd (presently Kerala Bank) is directed to
consider the matter afresh after verifying the submissions and
documents furnished by the petitioners within a further period of
three months therefrom.
Accordingly, these writ petitions are disposed of.
Sd/-
M.A.ABDUL HAKHIM
JUDGE
Shg
W.P.(C)NOS.20564 & 20963 of 2013
APPENDIX OF WP(C) 20564/2013
PETITIONER EXHIBITS
EXHIBIT P1. A COPY OF THE CLAIM STATEMENT DATED
28.06.2008 SUBMITTED BY PETITIONER.
EXHIBIT P2. A TRUE COPY OF THE COMMUNICATION DATED
29.07.2013 ISSUED BY 3RD RESPONDENT.
EXHIBIT P3. A TRUE COPY OF THE OBJECTION DATED
08.08.2013 SUBMITTED BY THE PETITIONER.
EXHIBIT P4. A TRUE COPY OF THE COMMUNICATION DATED
12.08.13 ISSUED BY 3RD RESPONDENT.
RESPONDENTS' EXTS:
EXT.R3(A) TRUE COPY OF THE CIRCULAR NO.D/K.C.C.(C.C.)/2005-06
DATED 23/2/2006 ISSUED BY THE 3RD RESPONDENT BANK
EXT.R3(B) TRUE COPY OF THE LIST APPROVED BY THE TECHNICAL
COMMITTEE, KANNUR DISTRICT
EXT.R3(C) TRUE COPY OF THE APPLICATION DATED 19/5/2006
SUBMITTED BY THE PETITIONER
EXT.R3(D) TRUE COPY OF THE RESOLUTION NO.VII DATED 13/5/2006
TAKEN BY THE PETITIONER
EXT.R3(E) TRUE COPY OF THE LOAN SANCTION ORDER NO.D/KCC.(CC/
50)/ 2006 - 07 DATED 16/6/2006 OF THE 3RD RESPONDENT
BANK
EXT.R3(F) TRUE COPY OF THE CIRCULAR NO.1/2008 DATED 28/5/2008
EXT.R3(G) THE LIST SHOWING 126 BORROWERS WHO WERE NOT ELIGIBLE
FOR THE BENEFIT UNDER THE SCHEME ON RE-VERIFICATION
W.P.(C)NOS.20564 & 20963 of 2013
APPENDIX OF WP(C) 20963/2013
PETITIONER ANNEXURES
EXT.P1: TRUE COPY OF THE SANCTION ORDER UNDER KISSAN
CREDIT CARD CASH CREDIT SCHEME NO.D/KCC.CC/12/ 2007-
08 DATED 26/6/2007 ISSUED BY THE 4TH RESPONDENT.
EXT.P2: TRUE COPY OF THE RELEVANT PAGES OF GUIDLINES
IN NABARD CIRCULAR NO.NB (KERALA) NO.CPD/1566/PL-
14/2008-09 DATED 23/5/2008.
EXT.P3: TRUE COPY OF THE COMMUNICATION
NO.NB.CPD.GCD/DEBT WAIVER/2008-09 DATED 30/5/2008
ISSUED UNDER AGRICULTURAL DEBT WAIVER AND DEBT RELIEF
SCHEME-2008.
EXT.P4: TRUE COPY OF THE CONSOLIDATED CLAIM OF THE
PETITIONER DATED 22/8/2008 SUBMITTED UNDER
AGRICULTURAL DEBT WAIVER & DEBT RELIEF SCHEME- 2008.
EXT.P5: TRUE COPY OF THE LETTER NO. L & A (SOC)/
ADWDRS/09-10 DATED 15/2/2010 ISSUED BY THE 4TH
RESPONDENT TO THE PETITIONER.
EXT.P6:TRUE COPY OF THE LETTER NO. L&A (SOC)/2013-14
DATED 18/5/2013 ISSUED BY THE 4TH RESPONDENT TO THE
PETITIONER.
EXT.P7: TRUE COPY OF THE REPLY DATED 18/5/2013
SUBMITTED BY THE PETITIONER TO THE 4TH RESPONDENT.
EXT.P8: TRUE COPY OF THE LETTER DTED 12/6/2013 ISSUED
BY THE JUNIOR CONCURRENT AUDITOR, PERINGOME SCB
GROUP, OFFICE OF THE ASST. DIRECTOR OF CO-OPERATIVE
AUDIT TO THE PETITIONER.
EXT.P9: TRUE COPY OF THE REPLY DATED 15/6/2013 WITH
ANNEXURE SUBMITTED BY THE PETITIONER.
` EXT.P10: TRUE COPY OF THE NOTICE NO.L & A (SOC)/
ADWDR/2013-14 DATED 29/7/2013 ISSUED BY THE 4TH
RESPONDENT TO THE PETITIONER
EXT.P11:TRUE COPY OF THE REPLY DATED 12/8/2013 WITH
RESOLUTION NO.9 OF THE MANAGING COMMITTEE OF THE
PETITIONER BANK.
W.P.(C)NOS.20564 & 20963 of 2013
EXT.P12: TRUE CLPY OF THE LETTER NO.L & A (SOC)/
ADWDR/2013-14 DATED 12/8/2013 ISSUED BY THE 4TH
RESPONDENT TO THE PETITIONER.
EXT.P13: TRUE CIRCULAR NO.20/2013 DATED 25/3/2013
ISSUED BY THE REGISTRAR OF CO-OPERATIVE SOCIETIES,
KERALA.
EXT.P14: TRUE COPY OF THE RELEVANT PAGES OF
CLARIFICATIONS ISSUED BY THE NABARD ON 2ND JUNE, 2008
REGARDING AGRICULTURE DEBT WAIVER AND DEBT RELIEF
SCHEME - 2008.
RESPONDENTS' EXTS:
EXT.R3(1) TRUE COPY OF THE LETTER DATED 21.3.2013 WITH ENGLISH
TRANSLATION
EXT.R3(2) TRUE COPY OF THE REPORT OF CONCURRENT AUDITOR WITH
ENGLISH TRANSLATION
EXT.R3(3) TRUE COPY OF THE REPAYMENT SCHEDULE
EXT.R4(A) TRUE COPY OF THE CIRCULAR NO.D/K.C.C.(C.C.)/2005-06
DATED 23/2/2006 ISSUED BY THE 3RD RESPONDENT BANK
EXT.R4(B) TRUE COPY OF THE LIST APPROVED BY THE TECHNICAL
COMMITTEE, KANNUR DISTRICT
EXT.R4(C) TRUE COPY OF THE APPLICATION DATED 13/4/2006
SUBMITTED BY THE PETITIONER
EXT.R4(D) TRUE COPY OF THE RESOLUTION NO.4 DATED 4/4/2006 TAKEN
BY THE PETITIONER
EXT.R4(E) TRUE COPY OF THE LOAN SANCTION ORDER
NO.D/KCC.CC/11/2006-7 DATED 15/5/2006 OF THE 4TH
RESPONDENT BANK
EXT.R4(F) TRUE COPY OF THE CIRCULAR NO.1/2008 DATED 28/5/2008
