Kerala High Court
Sunil Kumar S vs The Registrar Of Co-Operative ... 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. 36824 OF 2024
PETITIONER:
SUNIL KUMAR S
AGED 61 YEARS
S/O SREEDHARAN, EDATHUM PADIKKAL HOUSE, KUNNAMANGALAM,
KUNNAMANGALAM P.O., KOZHIKODE, PIN - 673571
BY ADVS.
ARUN CHAND
BEENA N.KARTHA
VINAYAK G MENON
BHARAT VIJAY P.
THAREEQ ANVER K.
K.SALMA JENNATH
MINU VITTORRIA PAULSON
ARCHANA P.P.
RESPONDENTS:
1 THE REGISTRAR OF CO-OPERATIVE SOCIETIES
OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES,
STATUE, THIRUVANANTHAPURAM, PIN - 695001
2 THE ASSISTANT REGISTRAR (GENERAL)
OFFICE OF THE ASSISTANT REGISTRAR (GENERAL) OF
CO-OPERATIVES SOCIETIES, PUTHIYARA, KOZHIKODE,
PIN - 673004
3 ARBITRATOR/ SPECIAL SALE OFFICER
KUNNAMANGALAM CRB, OFFICE OF THE ASSISTANT REGISTRAR
(GENERAL) OF CO-OPERATIVES SOCIETIES, PUTHIYARA,
KOZHIKODE, PIN - 673004
4 KUNNAMANGALAM CO-OPERATIVE RURAL BANK LTD NO.F.1246
KUNNAMANGALAM P.O., KOZHIKODE, REPRESENTED BY ITS
SECRETARY, PIN - 673571
W.P. (C) No.36824 of 2024 2
2024:KER:79512
5 THE SECRETARY
KUNNAMANGALAM CO-OPERATIVE RURAL BANK LTD
NO.F.1246, KUNNAMANGALAM P.O., KOZHIKODE, PIN -
673571
BY ADV P.V.ANOOP
OTHER PRESENT:
SMT. ANIMA M.-GP
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
24.10.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
W.P. (C) No.36824 of 2024 3
2024:KER:79512
N. NAGARESH, J.
----------------------------
W.P. (C) No.36824 of 2024
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Dated this the 24th day of October, 2024
JUDGMENT
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance made
by the Kunnamangalam Co-operative Rural Bank to the petitioner,
invoking the provisions of the Kerala State Co-operative
Agricultural and Rural Development Banks Act, 1984.
2. The Bank paid ₹5,93,909/- to the petitioner as
Loan. The petitioner states that though the petitioner made
remittances promptly during the initial repayment period of the
financial advance, he 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
monthly instalments, the Bank authorities were not yielding. The
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authorities, instead, started coercive proceedings, invoking the
provisions of the Kerala State Co-operative Agricultural and Rural
Development Banks Act, 1984 and issued Ext.P3 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.
The petitioner committed default in repaying the loan.
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 State Co-operative Agricultural and Rural Development
Banks Act, 1984. The impugned Ext.P3 was issued in these
circumstances. The petitioner has not advanced any legal
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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 22.10.2024 is ₹9,82,029/-.
8. I have heard the counsel for the petitioner and
the Standing Counsel representing the Bank 3 to 5. I have also
heard the Government Pleader representing respondents 1 and 2.
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.
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11. The writ petition is therefore disposed of with the
following directions:
(i) The petitioner shall remit the
outstanding amount of ₹9,82,029/- 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 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
vnk/-
2024:KER:79512
APPENDIX OF WP(C) 36824/2024
PETITIONER EXHIBITS
EXHIBIT P1 THE TRUE COPY OF THE PETITION IN ARC
NO.8371/2022 FILED BY THE PETITIONER
BEFORE THE REGISTRAR (GENERAL)
CO-OPERATIVE SOCIETY, KOZHIKODE
EXHIBIT P2 THE TRUE COPY OF THE FORM NO.6 NOTICE
DATED 09/05/2024 ISSUED BY THE 3RD
RESPONDENT TO THE PETITIONER
EXHIBIT P3 THE TRUE COPY OF THE UNDATED NOTICE
ISSUED BY THE 3RD RESPONDENT INTIMATING
THE STEPS FOR AUCTIONING THE MORTGAGED
PROPERTY OF THE PETITIONER
