Kerala High Court
Geetha vs The Velloor Service Co-Operative Bank ... on 12 November, 2024
Author: N. Nagaresh
Bench: N.Nagaresh
2024:KER:83668
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 12TH DAY OF NOVEMBER 2024/21ST KARTHIKA, 1946
WP(C) NO. 31126 OF 2023
PETITIONER:
GEETHA,
AGED 60 YEARS,
W/O MADHUSUDANAN NAIR,
THATCHAKUZHIYIL, MEVELLOOR,
VELLOOR, KOTTAYAM,
PIN - 686609
BY ADV.SRI.P.P.JACOB
RESPONDENTS:
1 THE VELLOOR SERVICE CO-OPERATIVE BANK
LTD.NO.785,
MEVELLOOR, VELLOOR, KOTTAYAM,
REPRESENTED BY ITS SECRETARY, PIN - 686609
2 THE JOINT REGISTRAR OF CO-OPERATIVE
SOCIETIES (G),
KOTTAYAM, OFFICE OF THE JOINT REGISTRAR OF
CO-OPERATIVE SOCIETIES (G),
COLLECTORATE, KOTTAYAM, PIN - 686002
3 THE REGISTRAR OF CO-OPERATIVE SOCIETIES
THIRUVANANTHAPURAM, PIN - 695001
4 THE SECRETARY TO GOVERNMENT
CO-OPERATION © DEPARTMENT,
SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695001
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W.P.(C) No.31126/2023
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*ADDL.5 THE KERALA CO-OPERATIVE DEVELOPMENT AND
WELFARE FUND BOARD,
TC 23/357(4), GANDHARI AMMAN KOVIL ROAD,
STATUTE, THIRUVANANTHAPURAM,
REPRESENTED BY ITS SECRETARY.
*(ADDITIONAL 5TH RESPONDENT IS IMPLEADED AS PER
ORDER DATED 18.07.2024 IN I.A.2/2024 IN WP(C)
31126/2023).
BY ADVS.
SRI.JITHIN BOSE
SMT.VIDHYA KISHAN(K/389/2012)
SRI.P.C.SASIDHARAN
SMT.MABLE C JURIAN, SR. GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY
HEARD ON 21.08.2024, THE COURT ON 12.11.2024 DELIVERED
THE FOLLOWING:
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W.P.(C) No.31126/2023
:3:
N. NAGARESH, J.
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W.P.(C) No.31126 of 2023
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Dated this the 12th day of November, 2024
JUDGMENT
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The petitioner, who is wife of a deceased loanee,
seeks to direct respondents 1 and 2 to ensure that Ext.P1
Scheme is implemented and the benefit of the Scheme is
extended to the petitioner in order to settle the default in loan
account of the deceased loanee. Ext.P1 is the amended
Kerala Co-operative Risk Fund Scheme.
2. The petitioner states that her deceased
husband availed a loan of ₹2.5 lakhs. The petitioner's
husband died due to neurological disease. The deceased
had repaid more than ₹60,000/- towards the loan account.
The Government of Kerala had issued a notification framing
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Co-operative Risk Fund Scheme. The Co-operative Risk
Fund Scheme has been framed and the petitioner's husband
is eligible to get the benefits under the Scheme. As per the
Scheme, deceased loanee is eligible to get benefit of waiver
of principal amount upto ₹1.5 lakhs with interest outstanding
in the loan account.
3. The petitioner submitted Ext.P3
representation to the Government. The representation was
forwarded by the Registrar of Co-operative Societies to the
Joint Registrar (General), Kottayam seeking to submit a
report. However, no further steps were taken on her
representation. The petitioner therefore approached the Co-
operative Ombudsman. Before the Ombudsman, the 1 st
respondent- Co-operative Bank undertook that they will
consider the matter and will extend due benefit, as can be
seen from Ext.P5 order of the Ombudsman. The 1 st
respondent, however, did not do anything in this regard.
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4. The petitioner therefore submitted Ext.P6
representation to the Chief Minister. The said Ext.P6
representation was forwarded to the Joint Registrar. The
Joint Registrar issued Ext.P7 letter to the Bank directing to
extend due benefit payable to the petitioner. However, the
benefit of Risk Fund Scheme has not been extended to the
petitioner so far.
5. The 1st respondent filed a counter affidavit in
the writ petition. The 1st respondent stated that the 1st
respondent-Co-operative Bank was not a member of the Risk
Fund Scheme at the relevant time. Furthermore, the
borrower did not pay necessary premium to join the Scheme.
The petitioner had approached the Co-operative Ombudsman
seeking the same relief. The Co-operative Ombudsman
passed Ext.P5 order without giving any substantial relief to
the petitioner. The petitioner did not challenge Ext.P5 order.
6. I have heard the learned counsel for the
petitioner, the learned counsel appearing for the 1st
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respondent, learned Government Pleader representing
respondents 2 to 4 and the learned Standing Counsel
appearing for the 5th respondent.
7. The deceased borrower availed loan of ₹2.5
lakhs in the month of March, 2008. At that time, the 1 st
respondent Co-operative Bank was not a member of the Risk
Fund Scheme. It is not disputed that the deceased borrower
did not remit any premium for availing the benefit of the
Scheme. The borrower died on 01.06.2011.
8. The petitioner would rely on Ext.P1
amendment to the Risk Fund Scheme which provides that if
the Co-operative Society/Bank fails to levy and pay the Risk
Fund premium, the Chief Executive of the Bank/Society
would be personally liable. Ext.P1 also states that if due to
the failure of the Society, if anyone is losing the benefit of
Risk Fund, then the Managing Committee and the Chief
Executive Officer would be liable.
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9. Ext.P1 amendment is one imposing liability
on the Managing Committee and the Chief Executive Officer
of Co-operative Societies/Banks. Ext.P1 therefore cannot
have retrospective operation so as to cover the loan taken by
the deceased in the year 2008. Admittedly, the 1 st
respondent was not covered by the Kerala Co-operative Risk
Fund Scheme in the year 2008 when the borrower availed the
loan and in the year 2011 when the borrower passed away.
No premium was remitted to the additional 5th respondent-
Kerala Co-operative Development and Welfare Fund Board.
Therefore, the additional 5th respondent cannot be burdened
with payment of Risk Fund benefits to the petitioner.
In the facts and circumstances of the case,
the petitioner is not entitled to the benefit of the Risk Fund
Scheme. However, in the facts of the case, the writ petition is
disposed of directing the 1st respondent-Bank that if the
petitioner makes an offer for settlement of the loan account
by way of One Time Settlement, the petitioner shall be
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extended with all permissible reduction including waiver of the
entire penal interest on the loan.
Sd/-
N. NAGARESH, JUDGE
aks/09.11.2024
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APPENDIX OF WP(C) 31126/2023
PETITIONER'S EXHIBITS:
Exhibit P1 TRUE PHOTOCOPY OF THE GOVERNMENT ORDER
VIDE G.O.(RKY) NO. 96/2014/CO-OP.
DATED 24.7.2014
Exhibit P2 TRUE PHOTOCOPY OF THE CIRCULAR 82/12
DATED 3.1.2014
Exhibit P3 TRUE PHOTOCOPY OF THE APPLICATION
SUBMITTED BY THE PETITIONER BEFORE THE
MINISTER, GOVERNMENT OF KERALA DATED
13.6.2014
Exhibit P4 TRUE PHOTOCOPY OF THE LETTER DATED
24.12 2014 FORWARDED BY THE REGISTRAR
OF CO-OPERATIVE SOCIETIES TO THE JOINT
REGISTRAR
Exhibit P5 TRUE PHOTOCOPY OF THE ORDER DATED
5.7.2019 ISSUED BY THE OMBUDSMAN
Exhibit P6 TRUE PHOTOCOPY OF THE REPRESENTATION
SUBMITTED BY THE PETITIONER BEFORE THE
CHIEF MINISTER OF KERALA DATED 27.2.21
Exhibit P7 TRUE PHOTOCOPY OF THE ORDER DATED
12.3.21 ISSUED BY THE SECOND
RESPONDENT.
Exhibit P8 TRUE PHOTOCOPY OF THE G.O.(KL)
32/22/CO-OP. DATED 11.10.22.
