Narayanan Embranthiri vs Assistant Rgistrar
2024 Latest Caselaw 13912 Ker

Kerala High Court

Narayanan Embranthiri vs Assistant Rgistrar on 28 May, 2024

             IN THE HIGH COURT OF KERALA AT ERNAKULAM
                              PRESENT
        THE HONOURABLE MR. JUSTICE M.A.ABDUL HAKHIM
   TUESDAY, THE 28TH DAY OF MAY 2024 / 7TH JYAISHTA, 1946
                     WP(C) NO. 22148 OF 2015
PETITIONER:

         NARAYANAN EMBRANTHIRI
         AGED 55 YEARS
         S/O.SUBRAMANIAN EMBRANTHIRI,SANKESSU
         MANA,MULAYAM,THRISSUR.
         BY ADV SRI.DILIP J. AKKARA


RESPONDENTS:

    1    ASSISTANT RGISTRAR OF COOPERATIVE SOCIETIES
         AYYANTHOLE,THRISSUR-680003.
    2    MANAGING DIRECTOR
         NADATHARA FARMERS SERVICE CO-OPERATIVE BANK
         LTD.NO.3499, NADATHARA,THRISSUR-680751.
    3    SPECIAL SALE OFFICER
         NADATHARA MOOSPET GROUP,OFFICE OF THE
         ASST.REGISTRAR OF CO-OPERATIVE
         SOCIETIES(GENERAL),AYYANTHOLE,THRISSUR-680003.
         BY ADV SRI.M.SASINDRAN


OTHER PRESENT:

         SMT.K.B.SONY-GP



     THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
28.05.2024,    THE   COURT   ON   THE   SAME   DAY   DELIVERED   THE
FOLLOWING:
 WP(C) No.22148 of 2015

                             2

                 M.A ABDUL HAKHIM, J
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               WP(C) No.22148 of 2015
           - - - - - - - - - - - - - - - -
           Dated this the 28th of May, 2024

                         JUDGMENT

1. The petitioner's father availed a loan of Rs.85,000/-

from the 2nd respondent Bank on the strength of the

petitioner's property. When the loan amount was

defaulted, the 2nd respondent proceeded against the

father of the petitioner and the petitioner and the 2 nd

respondent obtained an award in ARCNo.1911/11 and

pursuant to which Ext.P2 Demand Notice was issued

against the petitioner for realisation of an amount of

Rs.2,51,310/- with interest and costs. The father of the

petitioner died in the meantime. Though the Award is

not produced, the contention of the petitioner is that

the award is a time barred in view of the limitation

provided in Schedule III read with S.69(4) of the Kerala

Co-operative Societies Act. He also contended that the

demand is in violation of Ext.P5 Circular dated

03.01.2014 by which it is provided that with respect to

defaulted loans up Rs.5 lakhs, the same shall be settled

realising the outstanding principal amount with equal

amount towards interest if the interest is more than the

principal amount and with 10% of the interest on the

principal amount.

2. Respondent No.2 has filed a Counter Affidavit dated

26.10.2015 stating that the Limitation Act is not

applicable to cooperative societies as per the decision

of this Court in Rajan v. Co-operative Tribunal

[1989(2) KLT 895] ; that the Award dated 08.12.2011

in ARC 1911/11 has become final as the petitioner has

not preferred any statutory appeal and that the loanee

had agreed to repay the loan with interest @ 14% and

another 2% in case of defaulted and hence Ext.P5

circular intended for one time settlement, is not

applicable to the petitioner.

3. I heard the learned counsel for the petitioner and

counsel for the respondents.

4. The limitation period in Schedule III and S.69(4) was

inserted in the Kerala Co-operative Societies Act, only

with effect from 14.02.2013. Hence with respect to

arbitration proceedings initiated and concluded in the

year 2011 the limitation period under Section 69(4) of

the Kerala Co-operative Societies Act is not applicable.

That apart, the benefit in Ext.P5 circular is given only

for the purpose of settlement of the outstanding loan in

a time bound manner. Petitioner has not availed benefit

of the same. Hence none of the contentions raised by

the petitioner in this writ petition is sustainable.

5. At the time of admitting this writ petition, this Court

had passed an order dated 23.07.2015 granting an

interim order in favour of the petitioner staying all

coercive proceedings on condition to remit Rs.1 lakh to

the 2nd respondent within a time of one month. The

learned Counsel for the petitioner submits and the

learned counsel for the 2nd respondent confirms that

the petitioner has complied with the said interim order.

Learned Counsel for the 2nd respondent submits that

the outstanding amount as on today is Rs.2,82,788/-.

6. In such circumstances, I dismiss this writ petition

permitting the petitioner to liquidate the balance

outstanding amount of Rs.2,82,788/- with future

interest in 12 equal monthly instalments starting from

15.06.2024 and keeping in abeyance the recovery

proceedings till such time. In case, the petitioner

defaults one instalment, the respondents are free to

proceed with the recovery proceedings as per the

Arbitration Award.

Ordered accordingly.

Sd/-

M.A ABDUL HAKHIM, Judge jma

APPENDIX OF WP(C) 22148/2015

PETITIONER EXHIBITS

EXT.P1 PHOTOCOPY OF THE PAGES 1 TO 3 OF PASS BOOK NO.1116 ISSUED BY 2ND RESPONDENT BANK WITH ENGLISH TRANSLATION EXT.P2 PHOTOCOPY OF DEMAND NOTICE DATED 18-9-14 ISSUED BY 3RD RESPONDENT WITH ENLISH TRANSLATION EXT.P3 PHOTOCOPY OF PLAINT DATED 31-1-2000 FILED BY 2ND RESPONDENT WITH ENLISH TRANSLATION EXT.P4 PHOTOCOPY OF NOTICE BEFORE ATTACHMENT DATED NIL ISSUED BY 3RD RESPONDENT WITH ENGLISH TRANSLATION.

EXT.P5 PHOTOCOPY OF CIRCULAR NO.82/13 DT 03.01.2014 ISSUED BY REGISTRAR OF COOPERATIVE SOCIETIES WITH ENGLISH TRANSLATIONS