Kerala High Court
Ramachandran Pillai vs Varkala Cooperative Agricultural And ... on 24 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
W.P.(C)No.2700 of 2024
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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. 2700 OF 2024
PETITIONER:
RAMACHANDRAN PILLAI
AGED 64 YEARS, S/O SUKUMARA PILLAI
ASWATHI, MADAVOOR P.O., MADAVOOR
THIRUVANANTHAPURAM, PIN - 695602.
BY ADVS.
R.RAJESH (VARKALA)
MANU RAMACHANDRAN
M.KIRANLAL
T.S.SARATH
SAMEER M NAIR
SAILAKSHMI MENON
JOTHISHA K.A.
SMT.AKHILA B.
AASHI K. SHAJAN
RESPONDENTS:
1 VARKALA COOPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK LTD
GOPAL BUILDING MAITHANAM, VARKALA P.O.,
THIRUVANANTHAPURAM; REPRESENTED BY: ITS
SECRETARY, PIN - 695641.
2 SECRETARY
VARKALA COOPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK; GOPAL BUILDING MAITHANAM,
VARKALA P.O., THIRUVANANTHAPURAM, PIN - 695641.
3 SPECIAL SALE OFFICER
VARKALA COOPERATIVE AGRICULTURAL AND RURAL
W.P.(C)No.2700 of 2024
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DEVELOPMENT BANK; GOPAL BUILDING MAITHANAM,
VARKALA P.O., THIRUVANANTHAPURAM, PIN - 695641.
4 SADALEKSHMI
AGED 55 YEARS
W/O RAMACHANDRAN PILLAI; ASWATHI, MADAVOOR P.O.,
MADAVOOR THIRUVANANTHAPURAM, PIN - 695602.
BY ADVS.
T.R.HARIKUMAR
ARJUN RAGHAVAN
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.2700 of 2024
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JUDGMENT
Dated this the 24th day of October, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Varkala Co-operative Agricultural and Rural
Development Bank to the petitioner, invoking the provisions of
the Kerala State Co-operative Agricultural and Rural
Development Banks Act, 1984.
2. The Bank paid ₹4 lakhs to the petitioner's wife
as loan in the year 2015. The petitioner stood as guarantor. The
petitioner states that though the petitioner's wife 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. It happened due
to reasons beyond the control of the petitioner's wife.
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 State Co-operative Agricultural and
Rural Development Banks Act, 1984 and issued Ext.P6 notice.
4. The petitioner states that he 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, he 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's wife in the year 2015. The
petitioner's wife committed default in repaying the loan.
6. The Bank repeatedly reminded the petitioner
and required him to clear the dues. The petitioner deliberately
omitted to do so. In the circumstances, the Bank had no other
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go than to proceed against the petitioner invoking the provisions
of the Kerala State Co-operative Agricultural and Rural
Development Banks Act, 1984. The impugned Ext.P6 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 remit the balance
outstanding amount in instalments, 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 24.10.2024 is ₹5,32,698/-.
8. I have heard the learned Counsel for the
petitioner and the learned 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 occurred lately
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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 ₹5,32,698/- in 12
equal and consecutive monthly instalments,
along with accruing interest and other Bank
charges, if any. The first of such instalments
shall be paid on or before 25.11.2024.
(ii) If the petitioner commits default in
making payments as directed above, the
respondents will be at liberty to continue with
coercive proceedings against the petitioner in
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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
ams
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APPENDIX OF WP(C) 2700/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE PASSBOOK OF
PETITIONER'S LOAN IN ACCOUNT NO. NHS
90/15 WITH 1ST RESPONDENT BANK
Exhibit P2 A TRUE COPY OF PAYMENT RECEIPT ISSUED
BY 1ST RESPONDENT TO 4TH RESPONDENT AS
ON 02.06.2018
Exhibit P3 A TRUE COPY OF PAYMENT RECEIPT ISSUED
BY 1ST RESPONDENT TO 4TH RESPONDENT AS
ON 19.07.2018
Exhibit P4 A TRUE COPY OF THE DEMAND NOTICE ISSUED
BY 3RD RESPONDENT TO PETITIONER AND 4TH
RESPONDENT AS ON 27.07.2023
Exhibit P5 A TRUE COPY OF INFORMATION RECEIVED
FROM JOINT REGISTRAR, COOPERATIVE
DEPARTMENT OFFICE AS ON 30.09.2023
Exhibit P6 A TRUE COPY OF THE SALE NOTICE ISSUED
BY 3RD RESPONDENT TO PETITIONER DATE
NIL
