Kerala High Court
Gireesh Kumar vs The Joint Registrar Of Co-Operative ... on 15 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 15TH DAY OF NOVEMBER 2024 / 24TH KARTHIKA, 1946
WP(C) NO. 40490 OF 2024
PETITIONER:
GIREESH KUMAR
AGED 54 YEARS
S/O.PADMANABHAN NAIR,
UNUPPALIL HOUSE,
CHEROOPA P.O., MAVOOR,
KOZHIKODE, PIN - 673661
BY ADVS.
R.SUDHISH
M.G.ASHOKAN
M.MANJU
RESPONDENTS:
1 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
CIVIL STATION, PUTHIYARA, KOZHIKODE, PIN - 673002
2 THE ARBITRATOR / SPECIAL SALES OFFICER
MAVOOR SERVICE CO-OPERATIVE BANK GROUP,
OFFICE OF THE ASSISTANT REGISTRAR OF
CO-OPERATIVE SOCIETIES (GENERAL),
KOZHIKODE, PIN - 673004
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WP(C) No.40490 of 2024
2
3 THE MAVOOR SERVICE CO-OPERATIVE BANK LIMITED
NO. F-1247, MAVOOR, KOZHIKODE,
REPRESENTED BY ITS SECRETARY,
PIN - 673661
BY ADV.
SMT.SHEEJA C.S, SENIOR GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 15.11.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) No.40490 of 2024
3
JUDGMENT
Dated this the 15th day of November, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Mavoor Service Co-operative Bank Limited to the
petitioner, invoking the provisions of the Kerala Co-operative
Societies Act, 1969.
2. The Bank paid ₹20 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
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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 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 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
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omitted to do so. In the circumstances, the Bank had no other
go than to proceed against the petitioner invoking the provisions
of the Kerala Co-operative Societies Act, 1969. 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 15.11.2024 is ₹34,69,079/-.
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
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loan account initially. The default in repayment of the loan
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 ₹5 lakhs
within a period of one month from today and
the balance outstanding amount in 15
consecutive and equal monthly instalments
thereafter along with accruing interest and
other Bank charges, if any.
(ii) If the petitioner commits single default
in making payments as directed above, the
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Bank will be at liberty to continue with the
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.
(iv) The petitioner will be at liberty to
approach the Bank for One Time Settlement in
the meanwhile without violating the repayment
schedule as directed above.
Sd/-
N.NAGARESH
JUDGE
spk
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APPENDIX OF WP(C) 40490/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE SALE NOTICE ISSUED BY
THE 2ND RESPONDENT TO THE PETITIONER
DATED 17.10.2024
Exhibit P2 TRUE COPY OF THE STATEMENT ISSUED BY
THE 3RD RESPONDENT SOCIETY TO THE
PETITIONER DATED 5.11.2024
