Akbar Khan vs The Asst. Registrar Of Co-Operative ...
2024 Latest Caselaw 32286 Ker

Citation : 2024 Latest Caselaw 32286 Ker
Judgement Date : 8 November, 2024

Kerala High Court

Akbar Khan vs The Asst. Registrar Of Co-Operative ... on 8 November, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

                                                  2024:KER:84036
W.P.(C) No.39453/2024
                                  :1:

           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. 39453 OF 2024

PETITIONER:
          AKBAR KHAN,
          AGED 56 YEARS,
          S/O SHAHUL HAMEED RAWTHER,
          PATTAPPALLIYIL VEEDU,
          OZHUKUPARACKAL P.O.,
          AYOOR, EDAMULACKAL VILLAGE,
          KOLLAM DISTRICT, PIN - 691533

           BY ADVS.
           K.V.ANIL KUMAR
           RADHIKA S.ANIL
           NIJAZ JALEEL


RESPONDENTS:

    1      THE ASST. REGISTRAR OF CO-OPERATIVE SOCIETIES/
           ARBITRATOR-CUM-SALE OFFICER,
           PARAVUR S.N.V.R.C. BANK LTD.NO.1685,
           PARAVUR, KOLLAM DISTRICT, PIN - 691301

    2      THE MANAGER,
           PARAVUR S.N.V.R.C. BANK LTD. NO. 1685,
           PARAVUR, KOLLAM DISTRICT, PIN - 691301

           BY ADV.SRI.B.SURESH KUMAR

     THIS WRIT PETITION          (CIVIL) HAVING COME UP     FOR
ADMISSION ON 08.11.2024,         THE COURT ON THE SAME      DAY
DELIVERED THE FOLLOWING:
                                                        2024:KER:84036
W.P.(C) No.39453/2024
                                  :2:



                             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 Paravur S.N.V.R.C Bank Ltd. to the petitioner,

invoking the provisions of the Kerala Co-operative Societies

Act, 1969.

2. The Bank paid ₹30 lakhs to the petitioner as

Loan in the year 2020. 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 outstanding amounts in easy 2024:KER:84036

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.P1 notice.

4. The petitioner states that he is still in a position

to clear the outstanding 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 2020. 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:84036

go, than to proceed against the petitioner invoking the

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

impugned Ext.P1 notice 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 ₹41,33,142/- and the interest

amount as on 08.11.2024 is ₹11,33,142/-.

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 account 2024:KER:84036

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 interest

amount of ₹11,33,142/- in 12 consecutive and

equal monthly installments along with accruing

interest and other Bank charges, if any. First of

such installments shall be paid on or before

09.12.2024.

(ii) If the petitioner commits default in

making payments as directed above, the

respondents will be at liberty to continue with

coercive proceedings against the petitioner in 2024:KER:84036

accordance with law.

(iii) If the petitioner pays the amount as

directed above, any coercive proceedings

against the petitioner will stand deferred.

(iv) The petitioner may approach the

respondents for fresh loan after clearing the

interest amount.

Sd/-