Kerala High Court
A.K. Pankajakshi vs Pavaratty Service Co-Operative Bank ... on 22 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:78831
W.P.(C) No.33001/2024
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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. 33001 OF 2024
PETITIONER:
A.K. PANKAJAKSHI,
AGED 69 YEARS,
C/O M.S.BALAN,
MATHRAMKOTE HOUSE,
MARUTHAYOOR P.O.,
PAVARATTY THRISSUR, PIN - 680507
BY ADV. VIVEK.P.K
RESPONDENTS:
1 PAVARATTY SERVICE CO-OPERATIVE BANK LTD.,
REPRESENTED BY ITS AUTHORISED OFFICER,
PAVARATTY CENTER PAVARATTY
THRISSUR DISTRICT, PIN - 680507
2 THE MANAGER,
PAVARATTY SERVICE CO-OPERATIVE BANK LTD.,
PAVARATTY CENTER PAVARATTY
THRISSUR DISTRICT, PIN - 680507
3 THE SPECIAL SALE OFFICER,
PAVARATTY SCB GROUP CHAVAKKAD,
THRISSUR DISTRICT, PIN - 680506
BY ADVS.
JOJO C.A.
JOSEPH ANU A.A(K/000492/2021)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 22.10.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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W.P.(C) No.33001/2024
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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 Pavaratty Service Co-operative Bank Ltd. to the
petitioner, invoking the provisions of the Kerala Co-operative
Societies Act, 1969.
2. The Bank paid ₹20 lakhs to the petitioner as
Loan in the year 2017. 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 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 petitioner states that she is still in a
position to clear the outstanding 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 2017. The
petitioner committed default in repaying the loan.
6. The Bank repeatedly reminded the
petitioner and required her to clear the dues. The petitioner
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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 notice 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 ₹39,45,021/-.
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
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the loan account initially. The default in repayment of the
account 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 ₹39,45,021/- in 18
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 22.11.2024.
(ii) If the petitioner commits default in
making payments as directed above, the
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respondents will be at liberty to continue
with coercive proceedings against the
petitioner in accordance with law.
(iii) If the petitioner pays the amount as
directed above, any coercive proceedings
against the petitioner will stand deferred.
Sd/-
N. NAGARESH
JUDGE
SR
2024:KER:78831
APPENDIX OF WP(C) 33001/2024
PETITIONER'S EXHIBITS:
Exhibit P1 THE TRUE COPY OF THE AUCTION NOTICE
DATED 09.08.2024 ISSUED BY THE 3RD
RESPONDENT UNDER RULE 81 (E) OF THE
KERALA CO-OPERATIVE SOCIETIES RULES
1969.
