Kerala High Court
Danimon George vs Paravur Snvrc Bank Ltd-1865 on 1 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:81098
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. 33261 OF 2024
PETITIONERS:
1 DANIMON GEORGE,
AGED 55 YEARS
S/O GEORGE JESUS DALE,KALARI,
PANMANA P.O, CHAVARA, KOLLAM,
PIN - 691583
2 AJITHA V.J
AGED 47 YEARS
W/O. DANIMON GEORGE, JESUS DALE,
KALARI, PANMANA P.O, CHAVARA,
KOLLAM-, PIN - 691583
3 MARGARET V J
AGED 75 YEARS
W/O. GEORGE, JESUS DALE,
KALARI, PANMANA P.O, CHAVARA,
KOLLAM-, PIN - 691583
BY ADVS.
P.ANOOP (MULAVANA)
RAJITHA V.K
RESPONDENTS:
1 PARAVUR SNVRC BANK LTD-1865
PARAVUR, KOLLAM
REPRESENTED BY ITS SECRETARY, PIN - 691301
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WP(C) No.33261 of 2024
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2 THE SALE OFFICER
PARAVUR SNVRC BANK LTD-1685,
PARAVUR, KOLLAM-, PIN - 691301
3 THE JOINT REGISTRAR
KERALA COOPERATIVE SOCIETIES,
PARAVUR SNVRC BANK LTD-1685,
PARAVUR, KOLLAM-, PIN - 691301
BY ADVS
SRI.B.SURESH KUMAR
SMT. RESMI THOMAS, GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 01.11.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) No.33261 of 2024
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JUDGMENT
Dated this the 1st day of November, 2024
The petitioners have approached this Court aggrieved
by the coercive proceedings for recovery of financial advance
made by the Paravur SNVRC Bank Limited to the
1st petitioner, invoking the provisions of the Kerala Co-operative
Societies Act, 1969.
2. The Bank paid ₹10 lakhs to the 1st petitioner
as loan in the year 2021. Petitioners 2 and 3 stood as
guarantors to the said loan. The petitioners state that though
the 1st 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 petitioners.
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3. Though the petitioners requested the Bank to
permit the petitioners 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 Act, 1969 and
issued Ext.P2 summons.
4. The petitioners state that they are 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 petitioners, they 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
petitioners. On behalf of the Bank, it is submitted that the loan
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was given to the 1st petitioner in the year 2021. The petitioners
committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioners
and required them to clear the dues. The petitioners
deliberately omitted to do so. In the circumstances, the Bank
had no other go than to proceed against the petitioners invoking
the provisions of Kerala Co-operative Societies Act, 1969. The
impugned Ext.P2 was issued in these circumstances. The
petitioners have not advanced any legal reasons to thwart the
coercive proceedings initiated by the Bank.
7. The Standing Counsel, however, submitted
that if the petitioners are 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 petitioners to clear the dues. The Standing Counsel
submitted that the outstanding amount due to the Bank from the
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petitioners as on 24.10.2024 is ₹14,06,214/-.
8. I have heard the counsel for the petitioners
and the Standing Counsel representing the Bank.
9. The specific case of the petitioners is that the
petitioners have 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
petitioners. The petitioners have 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 petitioners to clear off the liability.
11. The writ petition is therefore disposed of with
the following directions:
(i) The petitioners shall remit the
outstanding amount of ₹14,06,214/- in 15
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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 petitioners commit single default
in making payments as directed above, the
Bank will be at liberty to continue with the
coercive proceedings against the petitioners in
accordance with law.
(iii) If the petitioners make payments as
directed above, coercive proceedings, if any,
against the petitioners shall stand deferred.
Sd/-
N.NAGARESH
JUDGE
spk
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APPENDIX OF WP(C) 33261/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE COMPLAINT FILED
BEFORE 3RD RESPONDENT HEREIN DATED
21/05/224 AS ARC 942/2024 UNDER RULE 67
& SEC 69 OF THE KERALA CO-OPERATIVE
SOCIETIES ACT 1969
Exhibit P2 A TRUE COPY OF THE SUMMONS ISSUED BY
THE 2ND RESPONDENT HEREIN DATED
02/08/2024
