Kerala High Court
Joycy T.J vs Special Sale Officer on 22 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:78721
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. 5960 OF 2024
PETITIONER:
JOYCY T.J.
AGED 53 YEARS
W/O. STEPHAN, KOYOM HOUSE, KODUVALLY VAYAL,
WEST HILL, KOZHIKODE, PIN - 673004
BY ADVS.
JOSE KURIAKOSE (VILANGATTIL)
BIJO FRANCIS
LUIZ GODWIN D COUTH
RESPONDENTS:
1 SPECIAL SALE OFFICER
MAVOOR SCB GROUP, OFFICE OF THE ASSISTANT
REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL),
KOZHIKODE, PIN - 673004
2 THE SECRETARY
CALICUT NORTH SERVICE CO-OPERATIVE BANK LTD,
KURUVISSERY, KOZHIKODE, PIN - 673010
BY ADVS.
SRI.P.P.JACOB
SMT.MARIYAM JACOB(K/001406/2018)
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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WP(C) No.5960 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 Calicut North Service Co-operative Bank Limited
to the petitioner, invoking the provisions of the Kerala
Co-operative Societies Act, 1969.
2. The Bank paid ₹10 lakhs to the petitioner as
Term Loan in the year 2016. 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 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 2016. The petitioner
committed default in repaying the loan.
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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 overdue 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 ₹22,72,588/- and the
overdue amount as on 22.10.2024 is ₹20,97,588/-.
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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
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
overdue amount of ₹20,97,588/- in 20
consecutive and equal monthly instalments
along with accruing interest and other Bank
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charges, if any. First of such instalments
shall be paid on or before 22.11.2024.
(ii) If the petitioner commits single
default in making payments as directed
above, the Bank will be at liberty to continue
with the coercive proceedings against the
petitioner in accordance with law.
(iii) The petitioner shall also pay current
EMIs along with the aforesaid payments.
(iv) If the petitioner makes payments as
directed above, coercive proceedings, if any,
against the petitioner shall stand deferred.
Sd/-
N.NAGARESH
JUDGE
spk
2024:KER:78721
APPENDIX OF WP(C) 5960/2024
PETITIONER EXHIBITS
Exhibit P1 THE TRUE COPY OF THE NOTICE DATED 04-
12-2023 ISSUED BY THE 1ST RESPONDENT
Exhibit P2 THE TRUE COPY OF THE LETTER ISSUED BY
THE ASSISTANT REGISTRAR (GENERAL)
KOZHIKODE DATED 05-01-2023
