Kerala High Court
Anju.P vs The Eroor Service Co-Operative Bank ... on 22 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:78625
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 22ND DAY OF OCTOBER 2024 / 30TH ASWINA, 1946
WP(C) NO. 29704 OF 2024
PETITIONER:
ANJU.P
AGED 30 YEARS, D/O.PADMAKUMAR,
NARAYANAVILASAM, AYILARA.P.O, EROOR,
KOLLAM, PIN - 691 312.
BY ADV
ANESH PAUL
RESPONDENTS:
1 THE EROOR SERVICE CO-OPERATIVE BANK LIMITED
NO.R.1816, EROOR.P.O, KOLLAM,
REPRESENTED BY ITS SECRETARY, PIN - 691 312.
2 THE SPECIAL SALE OFFICER
(PUNALUR SCB GROUP), OFFICE OF THE ASSISTANT
REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL),
PUNALUR, KOLLAM DISTRICT, PIN - 691 305.
BY ADV
P.N.MOHANAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 22.10.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
2024:KER:78633
WP(C) No.29704 of 2024
:2:
JUDGMENT
Dated this the 22nd day of October, 2024
The petitioner has approached this Court aggrieved
by the coercive proceedings for recovery of financial advance
made by the Eroor Service Co-operative Bank Limited to the
petitioner, invoking the provisions of the Kerala
Co-operative Societies Act, 1969.
2. The Bank paid ₹4 lakhs to the petitioner as
Loan in the year 2014. The petitioner states that though the
petitioner made remittances promptly during the initial
repayment period of the financial advance, she 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
2024:KER:78633
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 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 respondents, it is submitted that
the loan was given to the petitioner in the year 2014. The
petitioner committed default in repaying the loan.
2024:KER:78633
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
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 22.10.2024 is ₹9,49,461/-.
8. I have heard the counsel for the petitioner
and the Standing Counsel representing the Bank.
2024:KER:78633
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 ₹9,49,461/- in 14
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 22.11.2024.
2024:KER:78633
(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
AMR
2024:KER:78633
APPENDIX OF WP(C) 29704/2024
PETITIONER'S EXHIBITS
Exhibit P1 A TRUE COPY OF THE OFFICIAL NOTICE OF
AUCTION SALE DATED 7.8.2024 ISSUED BY
THE 2ND RESPONDENT.
