Kerala High Court
Ibrahim M K vs The Co-Operative Inspector on 7 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:83149
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 7TH DAY OF NOVEMBER 2024 / 16TH KARTHIKA, 1946
WP(C) NO. 32910 OF 2024
PETITIONER:
IBRAHIM M K
AGED 50 YEARS
S/O KHADER HAJI,
RATHEEK HOUSE,
KORATA MOGARU,
MANJESHWAR,
KASARGOD,
PIN - 671323
BY ADVS.
LAVARAJ M.G.
KALAHARI CHANDRA BABU S.
RESPONDENTS:
1 THE CO-OPERATIVE INSPECTOR
SPECIAL SALE OFFICER,
MANJESWARAM SC GROUP,
OFFICE OF THE ASSISTANT REGISTRAR [GENERAL]
MANJESHWARAM P.O., KASARAGOD, PIN - 671323
2 THE BRANCH MANAGER
MANESHWAR CO-OPERATIVE BANK LIMITED,
NO.C 323, MANJESHWARAM,
KASARGOD, PIN - 671323
2024:KER:83149
WP(C) No.32910 of 2024
2
BY ADV.
SRI.KODOTH SREEDHARAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 07.11.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
2024:KER:83149
WP(C) No.32910 of 2024
3
JUDGMENT
Dated this the 7th day of November, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Manjeshwar Service Co-operative Bank Limited to
the petitioner, invoking the provisions of the Kerala Co-
operative Societies Act, 1969.
2. The Bank paid ₹20 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, 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
2024:KER:83149
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.P7 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 2017. 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
2024:KER:83149
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.P7 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 07.11.2024 is ₹28,19,919/-.
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
2024:KER:83149
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 ₹28,19,919/- 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 09.12.2024.
(ii) If the petitioner commits single default
in making payments as directed above, the
2024:KER:83149
Bank will be at liberty to continue with the
coercive proceedings against the petitioner in
accordance with law.
(iiii) 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:83149
APPENDIX OF WP(C) 32910/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE RECEIPT DATED 8.8.2018
Exhibit P2 TRUE COPY OF THE RECEIPT DATED
10.5.2019
Exhibit P3 TRUE COPY OF THE RECEIPT DATED
31.5.2022
Exhibit P4 TRUE COPY OF THE RECEIPT DATED
9.10.2023
Exhibit P5 TRUE COPY OF THE RECEIPT DATED
9.10.2023
Exhibit P6 TRUE COPY OF THE RECEIPT DATED
30.8.2024
Exhibit P7 TRUE COPY OF THE AUCTION NOTICE DATED
25.7.2024
