Koya.P vs Assistant Registrar Of Co-Operative ...
2024 Latest Caselaw 33189 Ker

Citation : 2024 Latest Caselaw 33189 Ker
Judgement Date : 15 November, 2024

Kerala High Court

Koya.P vs Assistant Registrar Of Co-Operative ... on 15 November, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

                                               2024:KER:85782


         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. 29589 OF 2022

PETITIONER:

         KOYA.P
         AGED 55 YEARS
         PUTHANPURAYIL HOUSE, CHERUKODE P.O,
         VALLAPUZHA PALAKKAD, PIN - 679336.


         BY ADV LATHEEF P.K.


RESPONDENTS:

    1    ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES(G),
         OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE
         SOCIETIES (G), OTTAPPALAM, PALAKKAD PIN - 679101.

    2    SALE OFFICER
         ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES(G),
         OFFICE OF THE ASSISTANT REGISTRAR OF
         CO-OPERATIVE SOCIETIES (G), OTTAPPALAM,
         PALAKKAD, PIN - 679101.

    3    VALLAPUZHA SERVICE CO-OPERATIVE BANK LTD
         NO - F.1207. NELLAYA P.O, NELLAYA ,PALAKKAD
         REPRESENTED BY SECRETARY., PIN - 679335.

         BY ADVS.
         SRI.P.N.MOHANAN
         SMT.MABLE C KURIAN, SR.GOVERNMENT PLEADER
 W.P.(C) No.29589 of 2022
                             :2:
                                           2024:KER:85782


     THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 15.11.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
 W.P.(C) No.29589 of 2022
                                    :3:
                                                  2024:KER:85782




                          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 Vallapuzha Service Co-operative Bank to the

petitioner, invoking the provisions of the Kerala Co-operative

Societies Act, 1969.

2. The Bank paid ₹22 lakhs to the petitioner as

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. It happened due to reasons beyond the control of the

petitioner.

2024:KER:85782

3. Though the petitioner requested the Bank to

permit the petitioner to repay the overdue amounts in easy

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

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 2018. The petitioner

committed default in repaying the loan.

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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

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 remit the balance

overdue amount in instalments, 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 11.11.2024 is ₹32,85,862/- and the

overdue amount is ₹25,52,602/-.

8. I have heard the learned Counsel for the

petitioner and the learned Standing Counsel representing the

2024:KER:85782

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 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 overdue

amount of ₹25,52,602/- in 12 equal and

consecutive monthly instalments along with

accruing interest and other Bank charges, if

any. The first of such instalments shall be paid

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on or before 16.12.2024.

(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

accordance with law.