Kerala High Court
Praveen vs Arbitration & Execution Inspector on 15 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:85768
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. 35628 OF 2024
PETITIONER:
PRAVEEN
AGED 51 YEARS
S/O BHASKARAN, PARAGANAT HOUSE,
ELAVALLY VILLAGE DESOM,
CHAVAKKAD TALUK, THRISSUR,
PIN - 680511
BY ADVS.
V.V.JOY
HEMANTH H.
DHILSHA HABEEB
RESPONDENTS:
1 ARBITRATION & EXECUTION INSPECTOR
OFFICE OF THE ASSISTANT REGISTRAR,
ASSISTANT REGISTRAR GENERAL OF CO-OPERATIVE
SOCIETIES,
CO-OPERATIVE DEPARTMENT OFFICE,
CHAVAKKAD, THRISSUR DISTRICT,
PIN - 680506
2 THE MULLASSERY BLOCK PANCHAYATH MULTI PURPOSE
SERVICE CO-OPERATIVE SOCIETY
R-1202 POST MULLASERY,
CHAVAKKAD TALUK, THRISSUR,
REPRESENTED BY THE SECRETARY,
PIN - 680509
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WP(C) No.35628 of 2024
2
BY ADVS.
N.U.HARIKRISHNA
MITHUN BABY JOHN(K/1270/2012)
SMT.SHEEJA C.S.,SR.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.35628 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 Mullassery Block Panchayat Multi Purpose
Service Co-operative Society to the petitioner and his wife,
invoking the provisions of the Kerala Co-operative Societies
Act, 1969.
2. The 2nd respondent paid ₹5 lakhs to the
petitioner and his wife 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
2nd respondent to permit the petitioner to repay the overdue
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amounts in easy monthly instalments, the respondent
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 2nd respondent 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 2nd respondent and denied all the statements
made by the petitioner. On behalf of the 2nd respondent, it is
submitted that the loan was given to the petitioner and his wife
in the year 2016. The petitioner and his wife committed default
in repaying the loan.
6. The 2nd respondent repeatedly reminded the
petitioner and his wife and required them to clear the dues.
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They deliberately omitted to do so. In the circumstances, the
2nd respondent had no other go than to proceed against the
petitioner and his wife invoking the provisions of the Kerala
Co-operative Societies Act, 1969. The impugned Ext.P1 was
issued in these circumstances. The petitioner and his wife
have not advanced any legal reasons to thwart the coercive
proceedings initiated by the 2nd respondent.
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
2nd respondent from the petitioner as on 19.09.2024 is
₹8,47,635/-.
8. I have heard the counsel for the petitioner
and the learned Standing Counsel representing the
2nd respondent.
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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 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 2nd respondent.
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
outstanding amount of ₹8,47,635/- in 15
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.
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(ii) If the petitioner commits single
default in making payments as directed
above, the 2nd respondent 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.
Sd/-
N.NAGARESH
JUDGE
hmh
2024:KER:85768
APPENDIX OF WP(C) 35628/2024
PETITIONER'S EXHIBITS
Exhibit P1 A TRUE COPY OF THE DEMAND NOTICE
ISSUED BY THE 1ST RESPONDENT DATED
23.09.2024 TO THE PETITIONER
