Kerala High Court
Asokan Edakkoth vs The Arbitrator/Special Sale Officer on 15 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:85772
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. 36443 OF 2024
PETITIONER:
ASOKAN EDAKKOTH
AGED 62 YEARS,
RESIDING AT EDAKKOTH HOUSE, MILAMADOM,
PANTHEERANKAAVU.P.O.,
KOZHIKODE, PIN - 673 019.
BY ADVS.
K.M.JAMALUDHEEN
LATHA PRABHAKARAN
SAINA MARIYAM BABY
RESPONDENTS:
1 THE ARBITRATOR/SPECIAL SALE OFFICER
MUKKAM SERVICE CO-OPERATIVE BANK,
OFFICE OF THE ASSISTANT REGISTRAR GENERAL
OF CO-OPERATIVE SOCIETIES,
KOZHIKODE, PIN - 673 001.
2 THE SECRETARY
PANTHEERANKAVU SERVICE SAHAKARANA BANK LTD,
NO.2110, OFFICE OF THE PANTHEERANKAVU SERVICE
SAHAKARANA BANK LTD,
PANTHEERANKAVU P.O., KOZHIKODE,
PIN - 673 019.
3 THE BRANCH MANAGER
PANTHEERANKAVU SERVICE SAHAKARANA BANK LTD
PANTHEERANKAVU BRANCH,
2024:KER:85772
W.P.(C) No.36443 of 2024
:2:
PANTHEERANKAVU P.O.,
KOZHIKODE, PIN - 673 019.
BY ADVS.
R.SUDHISH,SC
TENISON THOMAS(K/319/1994)
M.MANJU(K/003562/1999)
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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W.P.(C) No.36443 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 Pantheerankavu Service Sahakarana Bank
Limited to the petitioner, invoking the provisions of the Kerala
Co-operative Societies Act, 1969.
2. The Bank paid ₹30 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 repayment 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 Exts.P1 and P2 notices.
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 Bank, 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 Exts.P1 and P2 were 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 ₹50,15,017/-.
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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 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
outstanding amount of ₹50,15,017/- in 16
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 petitioner commits single
default in making payments as directed
above, the respondents 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:85772
APPENDIX OF WP(C) 36443/2024
PETITIONER'S EXHIBITS
Exhibit P1 TRUE COPY OF THE AUCTION NOTICE DATED
13-5-2024 ISSUED BY THE 1ST
RESPONDENT.
Exhibit P2 TRUE COPY OF THE NOTICE DATED 8-10-
2024 ISSUED BY THE 1ST RESPONDENT.
