Kerala High Court
Geetha vs The Service Co-Operative Bank Ltd on 15 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:85586
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. 36605 OF 2024
PETITIONER:
GEETHA
AGED 55 YEARS
D/O BALAN , MELADATHU VEED,
KIZHAKAPUNNAM NILAM, PERUMANNA P.O.,
KOZHIKODE, PIN - 673026
BY ADVS.
M.B.SHYNI
RAJESH KUMAR R.
SARAFUDHEEN T.
V.R.ANILKUMAR
ELDHOSE JOY
AJITH P.C.
RESPONDENTS:
1 THE SERVICE CO-OPERATIVE BANK LTD
PERUVAYAL, PERUVAYAL P.O.,
KOZHIKODE DISTRICT,
REPRESENTED BY ITS SECRETARY,
PIN - 673008
2 THE SECRETARY
SERVICE CO-OPERATIVE BANK LTD.
PERUVAYAL, PERUVAYAL P.O.,
KOZHIKODE DISTRICT,
PIN - 673008
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2
3 THE SPECIAL SALES OFFICER
PERUVAYAL SERVICE CO-OPERATIVE BANK LTD,
PERUVAYAL, PERUVAYAL P.O.,
KOZHIKODE DISTRICT, PIN - 673008
BY ADVS.
RAKESH ROSHAN K
THUSHARA.V(K/300/2003)
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 petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Peruvayal Service Co-operative Bank to the
petitioner, invoking the provisions of the Kerala Co-operative
Societies Act, 1969.
2. The Bank paid ₹15 lakhs to the petitioner as loan in
the year 2015. 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
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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
respondents are 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 2018. 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
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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 ₹23,97,814/-.
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
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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 ₹23,97,814/- 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) 36605/2024
PETITIONER'S EXHIBITS
Exhibit P1 THE TRUE COPY OF THE ARC AWARD IN ARC
1192/2024 DATED 17/05/2024
