Celeena vs Special Sale Officer
2024 Latest Caselaw 30355 Ker

Citation : 2024 Latest Caselaw 30355 Ker
Judgement Date : 25 October, 2024

Kerala High Court

Celeena vs Special Sale Officer on 25 October, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

W.P.(C)No.33392 of 2024
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         IN THE HIGH COURT OF KERALA AT ERNAKULAM

                            PRESENT

              THE HONOURABLE MR.JUSTICE N.NAGARESH

 FRIDAY, THE 25TH DAY OF OCTOBER 2024 / 3RD KARTHIKA, 1946

                    WP(C) NO. 33392 OF 2024

PETITIONER:

         CELEENA
         AGED 70 YEARS, W/O. LATE DEVASSY,
         THALIYATH HOUSE, KADUKUTTY P.O,
         THRISSUR DISTRICT, PIN - 680309.

         BY ADVS.
         BOBY THOMAS
         WINSTON K.V



RESPONDENTS:

    1    SPECIAL SALE OFFICER
         KUTTIKAD FSCB GROUP, ASSISTANT REGISTRAR
         (GENERAL) OFFICE, CHALAKKUDY,
         THRISSUR, PIN - 680307.

    2    KADUKUTTY SERVICE CO-OPERATIVE BANK LTD
         NO.628, KADUKUTTY P.O, THRISSUR DISTRICT,
         REPRESENTED BY ITS SECRETARY, PIN - 680307.

         BY ADV R.GOPALAKRISHNAN

     THIS WRIT PETITION       (CIVIL) HAVING COME UP     FOR
ADMISSION ON 25.10.2024,      THE COURT ON THE SAME      DAY
DELIVERED THE FOLLOWING:
 W.P.(C)No.33392 of 2024
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                        JUDGMENT

Dated this the 25th day of October, 2024

The petitioner has approached this Court aggrieved by

the coercive proceedings for recovery of financial advance

made by the Kadukutty Service Co-operative Bank to the

petitioner, invoking the provisions of the Kerala Co-operative

Societies Act, 1969.

2. The Bank paid ₹15 lakhs to the petitioner's late

husband as loan in the year 2019. The petitioner states that

though the petitioner's late husband 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. It happened due to reasons beyond the

control of the petitioner's husband.

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 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 respondents, it is submitted that the

loan was given to the petitioner's late husband in the year 2019.

The petitioner's husband committed default in repaying the

loan.

6. The Bank repeatedly reminded the petitioner

and required her to clear the dues. The petitioner deliberately

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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 remit the balance

overdue 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 25.10.2024 is ₹23,74,870/- and the

overdue amount as on 25.10.2024 is ₹16,62,370/-.

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's husband has been making the repayment and

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maintaining the loan account initially. The default in repayment

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 ₹16,62,370/- in 18 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

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respondents will be at liberty to continue with

coercive proceedings against the petitioner in

accordance with law.