Ambika T vs The Branch Manager
2024 Latest Caselaw 33201 Ker

Citation : 2024 Latest Caselaw 33201 Ker
Judgement Date : 15 November, 2024

Kerala High Court

Ambika T vs The Branch Manager on 15 November, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

                                               2024:KER:85764




         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. 35503 OF 2024

PETITIONER:

         AMBIKA T,
         AGED 54 YEARS
         W/O BHASKARAN, MEENATHETHIL HOUSE,
         CHUNAKKARA P.O, MAVELIKKARA,
         ALAPPUZHA DISTRICT-, PIN - 690534


         BY ADVS.
         KRISHNADAS P. NAIR
         K.L.SREEKALA
         HARIDAS P.NAIR
         M.A.VINOD
         K.G.MANOJ KUMAR
         M.RAJESH KUMAR
         PRASOON.K.P
         ANU PRABHAKAR
         SWATHYKRISHNA K.
         MERLIN THOMAS
         VISHNU PRASAD
         ABHIRAMI P.S.




RESPONDENTS:

    1    THE BRANCH MANAGER,
         DISTRICTCO-OPERATIVE BANK LTD,
         ALAPPUZHADISTRICT-, PIN - 69055
                                             2024:KER:85764
WP(C) No.35503 of 2024
                           2


    2    THE AUTHORIZED OFFICER,
         THE KERALA STATE CO-OPERATIVE BANK LTD.
         REGIONAL OFFICE, ALAPPUZHA DISTRICT,
         PIN - 688001

    3    THE ASSISTANT REGISTRAR,
         KERALA STATE CO-OPERATIVE BANK,
         REGIONAL OFFICE, ALAPPUZHA DISTRICT,
         PIN - 688001


         SRI.THOMAS ABRAHAM,SC
         SMT. RESMI THOMAS, GOVERNMENT PLEADER

     THIS WRIT PETITION    (CIVIL) HAVING COME UP     FOR
ADMISSION ON 15.11.2024,   THE COURT ON THE SAME      DAY
DELIVERED THE FOLLOWING:
                                                    2024:KER:85764
WP(C) No.35503 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 District Co-operative Bank Limited to the petitioner,

invoking the provisions of the Kerala Co-operative Societies

Act, 1969.

2. The Bank paid ₹7.5 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, she 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

monthly instalments, the Bank authorities were not yielding. The 2024:KER:85764

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 she 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, she 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 her to clear the dues. The petitioner deliberately

omitted to do so. In the circumstances, the Bank had no other 2024:KER:85764

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 overdue 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 07.11.2024 is ₹16,18,858/- and the overdue

amount as on 07.11.2024 is ₹13,75,188/-.

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 2024:KER:85764

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 the overdue

amount of ₹13,75,188/- in 12 consecutive and

equal monthly instalments 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 petitioner commits single default

in making payments as directed above, the 2024:KER:85764

Bank will be at liberty to continue with the

coercive proceedings against the petitioner in

accordance with law.

(iii) The petitioner shall also pay current

EMIs along with the aforesaid payments.

(iv) If the petitioner makes payments as

directed above, coercive proceedings, if any,

against the petitioner shall stand deferred.

Sd/-

N.NAGARESH JUDGE hmh 2024:KER:85764