Rajan vs Special Sale Officer
2024 Latest Caselaw 32259 Ker

Kerala High Court

Rajan vs Special Sale Officer on 8 November, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

                                               2024:KER:83348




         IN THE HIGH COURT OF KERALA AT ERNAKULAM

                            PRESENT

              THE HONOURABLE MR.JUSTICE N.NAGARESH

FRIDAY, THE 8TH DAY OF NOVEMBER 2024 / 17TH KARTHIKA, 1946

                    WP(C) NO. 35748 OF 2024

PETITIONER:

         RAJAN
         AGED 70 YEARS
         S/O BALAN,
         KAREEPADATH HOUSE,
         ENGANDIYOOR VILLAGE DESOM,
         CHAVAKKAD TALUK,
         THRISSUR,
         PIN - 680615


         BY ADVS.
         V.V.JOY
         DHILSHA HABEEB
         HEMANTH H.




RESPONDENTS:

    1    SPECIAL SALE OFFICER
         ASSISTANT REGISTRAR GENERAL OF CO-OPERATIVE
         SOCIETIES, CO-OPERATIVE DEPARTMENT OFFICE,
         CHAVAKKAD, THRISSUR DISTRICT, PIN - 680506

    2    THE ENGANDIYOOR KARSHAKA SERVICE
         CO-OPERATIVE BANK LTD.NO.F.977
         POST ENGANDIYOOR, CHAVAKKAD TALUK, THRISSUR,
         REPRESENTED BY THE SECRETARY, PIN - 680615
                                                    2024:KER:83348
WP(C) No.35748 of 2024
                                2


            BY ADV
                 RASMI NAIR T


     THIS    WRIT   PETITION    (CIVIL)   HAVING   COME    UP    FOR
ADMISSION    ON   08.11.2024,   THE   COURT   ON   THE    SAME   DAY
DELIVERED THE FOLLOWING:
                                                   2024:KER:83348
WP(C) No.35748 of 2024
                                3


                           JUDGMENT

Dated this the 8th day of November, 2024

The petitioner has approached this Court aggrieved by

the coercive proceedings for recovery of financial advance

made by the Engandiyoor Karshaka Service Co-operative Bank

Limited to the petitioner, invoking the provisions of the Kerala

State Co-operative Agricultural and Rural Development Banks

Act, 1984.

2. The Bank paid ₹13 lakhs to the petitioner as

loan in the year 2016. 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:83348

monthly instalments, the Bank authorities were not yielding. The

authorities, instead, started coercive proceedings, invoking the

provisions of the Kerala State Co-operative Agricultural and

Rural Development Banks Act, 1984 and issued Ext.P1 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 2016. 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

omitted to do so. In the circumstances, the Bank had no other 2024:KER:83348

go than to proceed against the petitioner invoking the provisions

of the Kerala State Co-operative Agricultural and Rural

Development Banks Act, 1984. The impugned Ext.P1 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 08.11.2024 is ₹30,04,134/-.

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

loan account initially. The default in repayment of the loan 2024:KER:83348

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 ₹30,04,134/- 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

respondents will be at liberty to continue with

the coercive proceedings against the petitioner 2024:KER:83348

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:83348

APPENDIX OF WP(C) 35748/2024

PETITIONER EXHIBITS

Exhibit P1 A TRUE COPY OF THE SALE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 24.08.2024