Kerala High Court
Tahar vs Special Sale Officer on 8 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
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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. 35798 OF 2024
PETITIONER:
TAHAR
AGED 55 YEARS
S/O SAINUDHIN HAJI
PANIKKAVEETTIL,
ENGANDIYOOR,
KUNDALIYOOR
THRISSUR,
PIN - 680616
BY ADVS.
MANSOOR.B.H.
SAKEENA BEEGUM
RESPONDENTS:
1 SPECIAL SALE OFFICER
CHAVAKKAD FIRKA CO OPERATIVE RURAL BANK GROUP.
ASISSTANT REGISTRAR,GENERAL OFFICE,
CHAVAKKAD THRISSUR, PIN - 680506
2 ENGANDIYOOR FARMERS CO OPERATIVE RURAL BANK
HEAD OFFICE,CHETTUVA ENANDIYOOR,THRISSUR
REPRESENTED BY ITS SECRETARY,
PIN - 680616
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WP(C) No.35798 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:
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WP(C) No.35798 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 Farmers Co-operative Rural Bank to
the petitioner, invoking the provisions of the Kerala State Co-
operative Agricultural and Rural Development Banks Act, 1984.
2. The Bank paid ₹25 lakhs to the petitioner as
Mortgage Loan in the year 2018. 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 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
Bank is 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 Bank, it is submitted that the loan
was given to the petitioner in the year 2018. 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
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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 ₹35,72,559/-.
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
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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 ₹35,72,559/- in 18
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
Bank will be at liberty to continue with the
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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
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APPENDIX OF WP(C) 35798/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE SALE NOTICE IN E.P
NO:1318/2023 ISSUED BY THE 2ND
RESPONDENT IN RESPECT OF ARC
NO;4354/2022
