Kerala High Court
Suresh vs Ayyanthol Service Co- Operative Bank on 1 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:81485
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. 2909 OF 2024
PETITIONER:
SURESH
AGED 53 YEARS
S/O. M. K PRABHAKARAN,
MUNDAMTHARA HOUSE,
KECHERY P. O,
ERANELLUR, THRISSUR,
PIN - 680501
BY ADVS.
SREEKANTH S.NAIR
SANDEEP P JOHNSON
RESPONDENTS:
1 AYYANTHOL SERVICE CO- OPERATIVE BANK
LTD. NO. 494 AYANTHOL,
THRISSUR, REPRESENTED BY ITS MANAGER,
PIN - 680003
2 SPECIAL SALES OFFICER
AYYANOTHOL SCB LTD, NO. 494,
ASSISTANT REGISTRAR OFFICE,
SAHAKARANA BHAVAN, AYYANOTHOL,
THRISSUR, PIN - 680003
2024:KER:81485
WP(C) No.2909 of 2024
2
BY ADVS.
A.S.DILEEP
P.BINOD(K/647/1987)
K.Y.SUDHEENDRAN(K/000625/1987)
SUSEELA DILEEP(S-1307)
SUDEEP ARAVIND PANICKER(K/000517/2018)
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.2909 of 2024
3
JUDGMENT
Dated this the 1st day of November, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Ayyanthol Service Co-operative Bank to the
petitioner, invoking the provisions of the Kerala Co-operative
Societies Act, 1969.
2. The Bank paid ₹15 lakhs to the petitioner as
Mortgage Loan in the year 2013. The petitioner states that
though the 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 petitioner.
3. Though the petitioner requested the Bank to
permit the petitioner to repay the overdue amounts in easy
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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.P6 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 2013. 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
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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 Act, 1969. The impugned
Ext.P6 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 balance 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 as on 01.11.2024 is ₹33,97,677/-.
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
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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 ₹33,97,677/- in 15
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 petitioner commits single default
in making payments as directed above, the
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Bank will be at liberty to continue with the
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
spk
2024:KER:81485
APPENDIX OF WP(C) 2909/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF DISCHARGE SUMMARY DATED
12.01.2022 ISSUED TO THE PETITIONER.
Exhibit P2 TRUE COPY OF DISCHARGE SUMMARY DATED
25.03.2022 ISSUED TO THE PETITIONER.
Exhibit P3 TRUE COPY OF DISCHARGE SUMMERY DATED
17.06.2022 ISSUED TO THE PETITIONER.
Exhibit P4 TRUE COPY OF DISCHARGE SUMMERY DATED
18.01.2023
Exhibit P5 TRUE COPY OF DISCHARGE SUMMERY DATED
08.12.2023 ISSUED TO THE PETITIONER
Exhibit P6 TRUE COPY OF NOTICE DATED 19.12.2023
ISSUED TO THE PETITIONER BY THE 2ND
RESPONDENT.
