Kerala High Court
Mathew vs Kallur Service Co-Operative Bank ... on 17 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
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W.P.(C) No.29499/2024
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 17TH DAY OF OCTOBER 2024/25TH ASWINA, 1946
WP(C) NO. 29499 OF 2024
PETITIONERS:
1 MATHEW,
AGED 73 YEARS,
S/O JOHN, ARIYODIYIL HOUSE,
KALLUR VILLAGE, MUKUNDAPURAM TALUK,
THRISSUR DISTRICT, PIN - 680317
2 SINU MATHEW,
AGED 38 YEARS,
S/O MATHEW, ARIYODIYIL HOUSE,
KALLUR VILLAGE, MUKUNDAPURAM TALUK,
THRISSUR DISTRICT, PIN - 680317
BY ADVS.
SRI.JITHIN BABU A
SRI.ARUN SAMUEL
SRI.ANOOD JALAL K.J.
RESPONDENTS:
1 KALLUR SERVICE CO-OPERATIVE BANK LTD.NO.R227,
REPRESENTED BY ITS SECRETARY,
KALLUR P.O., THRISSUR, PIN - 680317
2 THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
(GENERAL)
AYYANTHOLE,
THRISSUR DISTRICT, PIN - 680001
3 ASSISTANT REGISTRAR OF COOPERATIVE SOCIETIES,
ADMINISTRATION OFFICE OF THE ASSISTANT
REGISTRAR OF COOPERATIVE SOCIETIES,
CHALAKUDY,
THRISSUR DISTRICT, PIN - 680307
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W.P.(C) No.29499/2024
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4 SPECIAL SALE OFFICER,
KALLUR SCB GROUP,
OFFICE OF THE ASSISTANT REGISTRAR OF
COOPERATIVE SOCIETIES (GENERAL),
MUKUNDAPURAM,
THRISSUR DISTRICT, PIN - 680317
BY ADVS.
SRI.P.N.MOHANAN
SRI.C.P.SABARI(K/973/2010)
SMT.MABLE C.KURIEN, SR. GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 17.10.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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W.P.(C) No.29499/2024
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JUDGMENT
Dated this the 17th day of October, 2024
The petitioners have approached this Court
aggrieved by the coercive proceedings for recovery of
financial advance made by the Kallur Service Co-operative
Bank Ltd. to the petitioners, invoking the provisions of the
Kerala Co-operative Societies Act, 1969.
2. The Bank paid ₹40,000/- to the petitioners
as Ordinary Loan and ₹1,00,000/- as Agricultural Loan in the
years 2010 and 2011 respectively. The petitioners state that
though the petitioners made remittances promptly during the
initial repayment period of the financial advance, they could
not pay the instalments promptly later. The repayment of
loans fell into arrears later. It happened due to reasons
beyond the control of the petitioners.
3. Though the petitioners requested the Bank
to permit the petitioners to repay the outstanding amounts in
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easy 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 petitioners state that they are still in a
position to clear the outstanding amounts towards the loans,
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 petitioners, they 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
petitioners. On behalf of the respondents, it is submitted that
the loans were given to the petitioners in the years 2010 and
2011 respectively. The petitioners committed default in
repaying the loans.
6. The Bank repeatedly reminded the
petitioners and required them to clear the dues. The
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petitioners deliberately omitted to do so. In the
circumstances, the Bank had no other go, than to proceed
against the petitioners invoking the provisions of the Kerala
Co-operative Societies Act, 1969. The impugned Ext.P1
notice was issued in these circumstances. The petitioners
have not advanced any legal reasons to thwart the coercive
proceedings initiated by the Bank.
7. The Standing Counsel, however, submitted
that if the petitioners are 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 petitioners to clear the dues. The Standing
Counsel submitted that the outstanding amount due to the
Bank from the petitioners as on 17.10.2024 is ₹3,88,358/-.
8. I have heard the counsel for the petitioners
and the Standing Counsel representing the Bank. I have also
heard the Government Pleader representing respondents
2 and 3.
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9. The specific case of the petitioners is that
the petitioners have been making the repayment and
maintaining the loan account initially. The default in
repayment of the account occurred lately due to reasons
beyond the control of the petitioners. The petitioners have
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 petitioners to clear off the liability.
11. The writ petition is therefore disposed of with
the following directions:
(i) The petitioners shall remit the
outstanding amount of ₹3,88,358/- in six
consecutive and equal monthly installments
along with accruing interest and other Bank
charges, if any. First of such installments
shall be paid on or before 18.11.2024.
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(ii) If the petitioners commit default in
making payments as directed above, the
respondents will be at liberty to continue with
coercive proceedings against the petitioners
in accordance with law.
iii) If the petitioners pay the amount as
directed above, any coercive proceedings
against the petitioners will stand deferred.
Sd/-
N. NAGARESH
JUDGE
SR
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APPENDIX OF WP(C) 29499/2024
PETITIONERS EXHIBITS:
Exhibit P1 A TRUE COPY OF THE AUCTION NOTICE
DATED 18.07.2024 ISSUED BY THE 4TH
RESPONDENT.
