Beena K.G vs The Joint Registrar Of Co-Operative ...
2024 Latest Caselaw 31671 Ker

Citation : 2024 Latest Caselaw 31671 Ker
Judgement Date : 6 November, 2024

Kerala High Court

Beena K.G vs The Joint Registrar Of Co-Operative ... on 6 November, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

                                                  2024:KER:82406


         IN THE HIGH COURT OF KERALA AT ERNAKULAM

                            PRESENT

              THE HONOURABLE MR.JUSTICE N.NAGARESH

  WEDNESDAY, THE 6TH DAY OF NOVEMBER 2024/15TH KARTHIKA, 1946

                    WP(C) NO. 38546 OF 2024

PETITIONER:
         BEENA K.G.
         AGED 55 YEARS, W/O. MANOHARAN, MELEMANNINKAL
         HOUSE, KOMMERI P.O., CALICUT, PIN - 673007

         BY ADVS.
         HARISHMA P. THAMPI
         M.G.ASHOKAN


RESPONDENTS:
    1    THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
         CIVIL STATION, PUTHIYARA, KOZHIKODE,
         PIN - 673 002.

    2    THE ARBITRATOR/SPECIAL SALES OFFICER
         CHEVAYUR SERVICE CO-OPERATIVE BANK GROUP ,
         OFFICE OF THE ASSISTANT REGISTRAR OF
         CO-OPERATIVE SOCIETIES (GENERAL),
         KOZHIKODE, PIN - 673 004.

    3    THE CHEVAYUR SERVICE CO-OPERATIVE BANK LTD
         NO.F.1245, NELLIKODE, CHEVARAMBALAM, KOZHIKODE,
         REPRESENTED BY ITS SECRETARY, PIN - 673 017.

         BY ADVS.
         R.SUDHISH
         M.MANJU(K/003562/1999)
         SHEEJA C.S., SENIOR GOVERNMENT PLEADER

     THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 06.11.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
                                                            2024:KER:82406

WP(C) No.38546 of 2024
                                   :2:


                              JUDGMENT

Dated this the 6th day of November, 2024

The petitioner has approached this Court aggrieved by

the coercive proceedings for recovery of financial advance

made by the Chevayur Service Co-operative Bank Limited to

the petitioner, invoking the provisions of the Kerala

Co-operative Societies Act, 1969.

2. The Bank paid ₹6 lakhs to the petitioner as

Loan in the year 2017. The petitioner states that though the

petitioner made remittances promptly during the initial

repayment period of the financial advance, she could not pay

the repayment 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

monthly instalments, the Bank authorities were not yielding.

2024:KER:82406

The authorities, instead, started coercive proceedings, invoking

the provisions of the Kerala Co-operative Societies Act, 1969

and issued Exts.P2 and P3 notices.

4. The petitioner states that she 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, she 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 respondents 2 and 3, it is submitted

that the loan was given to the petitioner in the year 2017. The

petitioner committed default in repaying the loan.

6. The Bank repeatedly reminded the petitioner

and required her to clear the dues. The petitioner deliberately

omitted to do so. In the circumstances, the Bank had no other 2024:KER:82406

go than to proceed against the petitioner invoking the

provisions of the Kerala Co-operative Societies Act, 1969. The

impugned Exts.P2 and P3 were 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 overdue amount

immediately thereafter, a short breathing time can be granted

to the petitioner to clear the dues. The Standing Counsel

submitted that the overdue amount due to the Bank from the

petitioner is ₹10 lakhs.

8. I have heard the counsel for the petitioner and

the Standing Counsel representing the Bank. I have also heard

the Senior Government Pleader representing the 1 st

respondent.

9. The specific case of the petitioner is that the

petitioner has been making the repayment and maintaining the 2024:KER:82406

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 overdue

amount of ₹10 lakhs 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

06.12.2024.

(ii) If the petitioner commits single default

in making payments as directed above, the 2024:KER:82406

respondents will be at liberty to continue with

the coercive proceedings against the

petitioner in accordance with law.

(iii) The petitioner shall also pay current

EMIs along with the aforesaid payments.

(iv) If the petitioner makes payments as

directed above, coercive proceedings, if any,

against the petitioner shall stand deferred.

Sd/-

N.NAGARESH JUDGE AMR 2024:KER:82406