Kerala High Court
Thrippanikkara Rajeevan vs The Special Sale Officer on 15 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:85759
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. 32484 OF 2024
PETITIONERS:
1 THRIPPANIKKARA RAJEEVAN
AGED 39 YEARS
S/O SHEKHARAN, CARPENTOR,
RESIDING AT THRIPPANIKKARA HOUSE, EZHILODE,
P.O.EZHILODE, KANNU, PIN - 670309
2 THRIPPANIKKARA SAJEEVAN
AGED 37 YEARS
S/O SHEKHARAN, CARPENTOR,
RESIDING AT THRIPPANIKKARA HOUSE,
EZHILODE, P.O.EZHILODE,
KANNUR, PIN - 670309
BY ADVS.
MAHESH V RAMAKRISHNAN
PRAVEEN K.S.
RESPONDENTS:
1 THE SPECIAL SALE OFFICER
MADAYI CO-OPERATIVE RURAL BANK GROUP,
OFFICE OF THE ASSISTANT REGISTRAR OF CO-
OPERATIVE SOCIETIES (GENERAL),
PAYYANUR, KANNUR,
PIN - 670307
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WP(C) NO.32484 OF 2024
2
2 THE MADAYI CO-OPERATIVE RURAL BANK LTD.
NO.F.1233
REPRESENTED BY ITS SECRETARY,
HEAD OFFICE PAZHAYANGADI,
P.O.PAZHAYANGADI,
KANNUR, PIN - 670309
BY ADV
SRI.M.SASINDRAN
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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3
JUDGMENT
Dated this the 15th day of November, 2024
The petitioners have approached this Court aggrieved
by the coercive proceedings for recovery of financial
advance made by the Madayi Co-operative Rural Bank
Limited to the petitioners, invoking the provisions of the
Kerala State Co-operative Agricultural and Rural
Development Banks Act, 1984.
2. The Bank paid ₹8 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.
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3. Though the petitioners requested the Bank to
permit the petitioners 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 State Co-operative
Agricultural and Rural Development Banks Act, 1984 and
issued Exts.P3 and P4 notices.
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 respondents are 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
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committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioners and
required them to clear the dues. The petitioners 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 State Co-operative Agricultural and
Rural Development Banks Act, 1984. The impugned Exts.P3
and P4 were 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 15.11.2024 is ₹11,75,965/-.
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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
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 ₹11,75,965/- in 18
consecutive and equal monthly instalments
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along with accruing interest and other Bank
charges, if any. First of such instalments
shall be paid on or before 16.12.2024.
(ii) If the petitioners commit single default
in making payments as directed above, the
Bank will be at liberty to continue with the
coercive proceedings against the petitioners
in accordance with law.
(iv) If the petitioners make payments as
directed above, coercive proceedings, if any,
against the petitioners shall stand deferred.
Sd/-
N.NAGARESH
JUDGE
hmh
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WP(C) NO.32484 OF 2024
APPENDIX OF WP(C) 32484/2024
PETITIONERS' EXHIBITS
Exhibit P1 TRUE COPY OF THE NOTICE NO.EP 193/2023
DATED 24-02-2024 ISSUED BY THE 1ST
RESPONDENT TO THE PETITIONERS
Exhibit P2 TRUE COPY OF THE NOTICE DATED 15-06-
2024 ISSUED BY THE 1ST RESPONDENT TO
THE PETITIONERS
Exhibit P3 TRUE COPY OF THE NOTICE OF
PROCLAMATION DATED 24-08-2024 ISSUED
BY THE 1ST RESPONDENT TO THE
PETITIONERS.
Exhibit P4 TRUE COPY OF THE NOTICE DATED 08-09-
2024 PUBLISHED IN MALAYALA MANORAMA
MALAYALAM DAILY DATED 08-09-2024
Exhibit P5 TRUE COPY OF THE RECEIPT DATED 14-10-
2024 ISSUED BY THE 2ND RESPONDENT TO
THE PETITIONER.
