Kerala High Court
Khadeeja Hassan vs Secretary To Government on 8 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:83345
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. 35641 OF 2024
PETITIONERS:
1 KHADEEJA HASSAN
AGED 70 YEARS
W/O HASSAN, ODAMKULATH (KAALATHOTTI) HOUSE,
KOTHAMANGALAM VILLAGE, KOTHAMANGALAM TALUK,
ERNAKULAM DISTRICT., PIN - 686691
2 RAFEEQ
AGED 45 YEARS
S/O HASSINAR, AGED 70 YEARS,
ODAMKULATH (KAALATHOTTI) HOUSE,
KOTHAMANGALAM VILLAGE, KOTHAMANGALAM TALUK,
ERNAKULAM DISTRICT, PIN - 686691
BY ADVS.
C.DILIP
P.N.VIJAYAN NAIR
JIJO JOSEPH
RESPONDENTS:
1 SECRETARY TO GOVERNMENT
DEPARTMENT OF COOPERATION,
GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM,
KERALA, PIN - 695001
2024:KER:83345
WP(C) No.35641 of 2024
2
2 SENIOR INSPECTOR OF CO-OPERATIVE SOCIETIES FOR
ARBITRATION AND EXECUTION
OFFICE OF ASSISTANT REGISTRAR OF
CO-OPERATIVE SOCIETIES (GENERAL),
KOTHAMANGALAM, ERNAKULAM DISTRICT,
PIN - 686691
3 SPECIAL SALE OFFICER
KOZHIPPILLY SCB GROUP,
OFFICE OF ASSISTANT REGISTRAR OF CO-OPERATIVE
SOCIETIES (GENERAL), KOTHAMANGALAM,
ERNAKULAM DISTRICT., PIN - 686691
4 MATHIRAPPILLY SERVICE CO-OPERATIVE BANK LTD.583
MATHIRAPPILLY, KOTHAMANGALAM, ERNAKULAM DISTRICT,
REPRESENTED BY ITS SECRETARY, PIN - 686691
BY ADVS.
NISHA GEORGE
GEORGE POONTHOTTAM (SR.)(K/000570/1979)
ANSHIN K.K(K/1249/2021)
RESMI THOMAS, GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 08.11.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
2024:KER:83345
WP(C) No.35641 of 2024
3
JUDGMENT
Dated this the 8th day of November, 2024
The petitioners have approached this Court aggrieved
by the coercive proceedings for recovery of financial advance
made by the Mathirappilly Service Co-operative Bank Limited to
the petitioners, invoking the provisions of the Kerala
Co-operative Societies Act, 1969.
2. The Bank paid ₹20 lakhs to the petitioners as
loan in the year 2016. The petitioners state that though the
petitioners made remittances promptly during the initial
repayment period of the financial advance, they 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 petitioners.
3. Though the petitioners requested the Bank to
permit the petitioners to repay the overdue amounts in easy
2024:KER:83345
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.P2 notice.
4. The petitioners state that they are 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 petitioners, they 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
petitioners. On behalf of the Bank, it is submitted that the loan
was given to the petitioners in the year 2016. The petitioners
committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioners
and required them to clear the dues. The petitioners
2024:KER:83345
deliberately omitted to do so. In the circumstances, the Bank
had no other go than to proceed against the petitioners invoking
the provisions of the Kerala Co-operative Societies Act, 1969.
The impugned Ext.P2 was issued in these circumstances. The
petitioners have not advanced any legal reasons to thwart the
coercive proceedings initiated by the Bank.
7. The Standing Counsel, however, submitted
that if the petitioners are 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 petitioners to clear the dues. The Standing Counsel
submitted that the outstanding amount due to the Bank from the
petitioners as on 08.11.2024 is ₹41,13,488/-.
8. I have heard the counsel for the petitioners
and the Standing Counsel representing the Bank.
9. The specific case of the petitioners is that the
petitioners have been making the repayment and maintaining
2024:KER:83345
the loan account initially. The default in repayment of the loan
occurred lately due to reasons beyond the control of the
petitioners. The petitioners have 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 petitioners to clear off the liability.
11. The writ petition is therefore disposed of with
the following directions:
(i) The petitioners shall remit the
outstanding amount of ₹41,13,488/- 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 petitioners commit single default
in making payments as directed above, the
2024:KER:83345
Bank will be at liberty to continue with the
coercive proceedings against the petitioners in
accordance with law.
(iii) If the petitioners make payments as
directed above, coercive proceedings, if any,
against the petitioners shall stand deferred.
Sd/-
N.NAGARESH
JUDGE
spk
2024:KER:83345
APPENDIX OF WP(C) 35641/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE PHOTO COPY OF AWARD DATED
20.09.2019 PASSED BY THE SECOND
RESPONDENT IN ARC NO 1657/2018.
Exhibit P2 TRUE PHOTO COPY OF NOTICE DATED
10.09.2024 ISSUED BY THE 3RD RESPONDENT
TO THE PETITIONERS.
Exhibit P3 TRUE PHOTO COPY OF SALE PROCLAMATION
DATED 10.09.2024 ISSUED BY THE 3RD
RESPONDENT
