Kerala High Court
Vijayakumari vs The Secretary on 25 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:79623
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. 33966 OF 2024
PETITIONERS:
1 VIJAYAKUMARI
AGED 50 YEARS, W/O. SIVAN P.A,
PARAYIL HOUSE, VELLAKAYAM, MULLARINGADU P.O.,
IDUKKI DISTRICT, PIN - 685607.
2 SIVAN P.A.,
AGED 54 YEARS, S/O. ADICHAN,
PARAYIL HOUSE, VELLAKAYAM, MULLARINGADU P.O.,
IDUKKI DISTRICT, PIN - 685607.
BY ADV P.ABANI
RESPONDENTS:
1 THE SECRETARY
THODUPUZHA RURAL CO-OPERATIVE SOCIETY LTD.,
NO.I 577, THODUPUZHA,
IDUKKI DISTRICT, PIN - 685584.
2 THE SPECIAL SALE OFFICER,
THODUPUZHA S.C.B. GROUP, CO-OPERATIVE SOCIETY,
ASSISTANT REGISTRAR (GENERAL) OFFICE,
THODUPUZHA, PIN - 685584.
BY ADVS.
T.R.HARIKUMAR
ARJUN RAGHAVAN
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.33966 of 2024
2
2024:KER:79623
JUDGMENT
Dated this the 25th day of October, 2024
The petitioners have approached this Court aggrieved
by the coercive proceedings for recovery of financial advance
made by the Thodupuzha Rural Co-operative Society to the
petitioners, invoking the provisions of the Kerala State
Co-operative Agricultural and Rural Development Banks Act,
1984.
2. The Bank paid two loans of ₹24,50,000/- to the
petitioners as loan in the year 2020. The petitioners state that
though the petitioners made remittances promptly during the
initial repayment period of the financial advance, they could not
pay the instalments promptly later. The repayment of loan fell
into arrears. It happened due to reasons beyond the control of
the petitioners.
2024:KER:79623
3. Though the petitioners requested the Bank to
permit the petitioners to repay the overdue amounts in easy
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.P3 notice.
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 petitioners in the year 2020. The
petitioners committed default in repaying the loan.
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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 than to proceed against the petitioners invoking
the provisions of the Kerala State Co-operative Agricultural and
Rural Development Banks Act, 1984. The impugned Ext.P3
notice was 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 ₹39,42,722/- and the overdue amount as
on 25.10.2024 is ₹26,15,602/-.
8. I have heard the learned Counsel for the
petitioners and the learned Standing Counsel representing the
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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 occurred
lately due to reasons beyond the control of the 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 ₹26,15,602/- in 20 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.
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(ii) If the petitioners commit default in
making payments as directed above, the
respondents will be at liberty to continue with
coercive proceedings against the petitioners in
accordance with law.
(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
ams
2024:KER:79623
APPENDIX OF WP(C) 33966/2024
PETITIONER EXHIBITS
Exhibit P1 THE TRUE COPY OF AWARD IN N ARC
128/2023 BY THE RESPONDENT ON
07/03/2023
Exhibit P1 (a) THE TRUE COPY OF AWARD IN ARC 127/2023
BY THE RESPONDENT ON 07/03/2023
Exhibit P2 THE TRUE COPY OF DEMAND NOTICE IS IN
E.P. NO.504/2024 FOR AN AMOUNT OF
RS.20,92,653/- BY THE RESPONDENT DATED
09/08/2024
ExhibitP2 (a) THE TRUE COPY OF DEMAND NOTICE IS IN
E.P. NO.503/2024 FOR AN AMOUNT OF
(RS.18,38,95/- (WRONGLY SHOWN AS
INSTEAD OFRS.20,92,653/) BY THE
RESPONDENT DATED 09/08/2024
Exhibit P3 THE TRUE COPY OF AUCTION SALE NOTICE
DATED 08/08/2024 WAS ISSUED BY THE 2ND
RESPONDENTS TO THE PETITIONERS
