Kerala High Court
Maria Catherine Jacob vs Kerala State Co-Operative Bank Limited on 24 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 24TH DAY OF OCTOBER 2024 / 2ND KARTHIKA, 1946
WP(C) NO. 32684 OF 2024
PETITIONERS:
1 MARIA CATHERINE JACOB
AGED 28 YEARS
D/O. JACOB J. MAPPILASSERY 3A LINK HERITAGE,
KACHERIPADY, ERNAKULAM, PIN - 682018
2 JACOB J. MAPPILASSERY
AGED 70 YEARS
S/O. LATE JOSEPH J. MAPPILASSERY 3A LINK HERITAGE,
KACHERIPADY, ERNAKULAM, PIN - 682018
3 TRESA PRESCILLA JACOB
AGED 64 YEARS
W/O. JACOB J. MAPPILASSERY 3A LINK HERITAGE,
KACHERIPADY, ERNAKULAM, PIN - 682018
4 BABY SEBASTIAN
AGED 57 YEARS
S/O. JOSEPH SEBASTIAN MUKKATH, MUTTINAKAM, VARAPUZHA,
ERNAKULAM, PIN - 683517
BY ADVS.
C.M.ANDREWS
LAYA MARY JOSEPH
HARISH ABRAHAM
SWATHY SUDHIR
RESPONDENTS:
1 KERALA STATE CO-OPERATIVE BANK LIMITED
(FORMERLY KNOWN AS ERNAKULAM DISTRICT CO-OPERATIVE
BANK) KOONAMMAVU BRANCH, NATIONAL HIGHWAY 17, CHITHIRA
JUNCTION, KOONAMMAVU, ERNAKULAM REP. BY ITS AUTHORISED
OFFICER, PIN - 683518
2 TAHSILDAR
W.P. (C) No.32684 of 2024 2
2024:KER:79504
2. TAHSILDAR KANAYANNUR TALUK OFFICE, ERNAKULAM,
PIN - 682011
3 TAHSILDAR
PARAVUR TALUK OFFICE, NORTH PARAVUR, ERNAKULAM,
PIN - 683513
BY ADVS
SRI. IMAM GREGORIOUS KARAT- GP
SMT.K.AMMINIKUTTY
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 24.10.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
W.P. (C) No.32684 of 2024 3
2024:KER:79504
N. NAGARESH, J.
----------------------------
W.P. (C) No.32684 of 2024
--------------------------------------------------
Dated this the 24th day of October, 2024
JUDGMENT
The petitioners have approached this Court aggrieved by
the coercive proceedings for recovery of financial advance made
by the 1st respondent - Bank to the 1st petitioner, invoking the
provisions of the Kerala Co-operative Societies Act, 1969 .
2. The Bank paid ₹10,00,000/- to the 1st petitioner
as Loan in the year 2019. Petitioners 2 to 4 are guarantors. The
petitioners state that though the petitioners made remittances
promptly during the initial repayment period of the financial
advance, the 1st petitioner 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 petitioners.
3. Though the petitioners requested the Bank to
permit the petitioners to repay the overdue amounts in easy
2024:KER:79504
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 Exts.P1 to P3 notices.
4. The petitioners state that they are 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 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
loan was given to the 1st petitioner in the year 2019. The 1st
petitioner committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioners
and required them to clear the dues. The petitioners deliberately
omitted to do so. In the circumstances, the Bank had no other go
2024:KER:79504
than to proceed against the petitioners invoking the provisions of
the Kerala Co-operative Societies Act, 1969. The impugned
Exts.P1 to P3 were 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 remit the balance
overdue amount in instalments, 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 is ₹15,12,353/- and the overdue amount as on
22.10.2024 is ₹7,70,238/-.
8. I have heard the counsel for the petitioners and
the Standing Counsel representing the Bank.
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 loan
occurred lately due to reasons beyond the control of the
2024:KER:79504
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 overdue
amount of ₹7,70,238/- in 15 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
25.11.2024.
(ii) If the petitioners commit single default
in making payments as directed above, the
respondents will be at liberty to continue with
the coercive proceedings against the
petitioners in accordance with law.
2024:KER:79504
(iii) The petitioners shall also pay current
EMIs along with the aforesaid payments.
(iv) If the petitioners make payments as
directed above, coercive proceedings, if any,
against the petitioners shall stand deferred.
Sd/-
N. NAGARESH
JUDGE
vnk/-
2024:KER:79504
APPENDIX OF WP(C) 32684/2024
PETITIONER EXHIBITS
EXHIBIT P1 TRUE COPY OF THE NOTICE DATED 17.12.2020
ISSUED BY THE 1ST RESPONDENT BANK TO THE
PETITIONER.
EXHIBIT P2 TRUE COPY OF NOTICE DATED 09.10.2023
ISSUED BY THE 2ND RESPONDENT AGAINST
PETITIONER NOS. 1-3.
EXHIBIT P3 TRUE COPY OF NOTICE DATED 14.10.2023
ISSUED BY THE 3RD RESPONDENT AGAINST 4TH
PETITIONER
EXHIBIT P4 TRUE COPY OF THE ONE-TIME SETTLE SCHEME
OFFERED TO THE 1ST PETITIONER DATED
15.12.2023.
EXHIBIT P5 TRUE COPY OF THE ONE-TIME SETTLE SCHEME
OFFERED TO THE 1ST PETITIONER DATED
23.02.2024.
EXHIBIT P6 TRUE COPY OF THE REPRESENTATION DATED
14.02.2024 PREFERRED BY THE 1ST
PETITIONER BEFORE THE STATE REVENUE
MINISTER
EXHIBIT P7 TRUE COPY OF THE REPRESENTATION DATED
28.02.2024 PREFERRED BY THE 2ND
PETITIONER BEFORE THE STATE REVENUE
MINISTER
EXHIBIT P8 TRUE COPY OF THE COMMUNICATION FROM THE
STATE REVENUE MINISTER WITH FILE NO.
2023/21000/07/1/S2/(REV) DATED 15.03.2024
