Kerala High Court
Radhamma vs Poothakkulam Service Co-Operative ... on 15 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:85583
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. 36427 OF 2024
PETITIONER:
RADHAMMA, AGED 62 YEARS
W/O.LATE BAHULEYA KURUP,
NANDILAZHIKATHU VEEDU, OONNINMMOODU,
POOTHAKKULAM, KOLLAM.,
PIN - 691302
BY ADV R.SATISH KUMAR
RESPONDENTS:
1 POOTHAKKULAM SERVICE CO-OPERATIVE BANK LIMITED
NO.2944,
POOTHAKKULAM P.O., KOLLAM,
REPRESENTED BY ITS SECRETARY, PIN - 691302
2 THE ARBITRATOR CUM SPECIAL SALE OFFICER,
POOTHAKKULAM SERVICE CO-OPERATIVE BANK LIMITED
NO.2944,
POOTHAKKULAM P.O.,
KOLLAM, PIN - 691302
BY ADVS.
SRI.T.R.HARIKUMAR,SC
ARJUN RAGHAVAN(K/1277/2012)
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.36427 of 2024
2
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 Poothakkulam Service Co-operative Bank Limited
to the petitioner, invoking the provisions of the Kerala
Co-operative Societies Act, 1969.
2. The Bank paid ₹3.5 lakhs to the petitioner as
loan in the year 2012. 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
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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 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 2012. 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
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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 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 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 ₹10,10,597/-.
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
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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 ₹10,10,597/- 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
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Bank 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
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APPENDIX OF WP(C) 36427/2024
PETITIONER'S EXHIBITS
Exhibit P1 TRUE COPY OF THE NOTICE E.A.NO.363/2017
DATED NIL ISSUED BY THE 2ND RESPONDENT
