Subaida N.P vs The Madayi Co Operative Rural Bank
2024 Latest Caselaw 30632 Ker

Kerala High Court

Subaida N.P vs The Madayi Co Operative Rural Bank on 30 October, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

W.P.(C)No.32703 of 2024
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          IN THE HIGH COURT OF KERALA AT ERNAKULAM

                            PRESENT

              THE HONOURABLE MR.JUSTICE N.NAGARESH

  WEDNESDAY, THE 30TH DAY OF OCTOBER 2024 / 8TH KARTHIKA, 1946

                    WP(C) NO. 32703 OF 2024

PETITIONER:

          SUBAIDA N.P
          AGED 58 YEARS, D/O. SULAIMAN A.K,
          NAALU PURAPPATTIL VEETTIL, EZHILOD P.O,
          KANNUR DISTRICT., PIN - 670309.

          BY ADVS.
          M.ANUROOP
          M.DEVESH
          MURSHID ALI M.



RESPONDENTS:

    1     THE MADAYI CO OPERATIVE RURAL BANK
          REPRESENTED BY THE SECRETARY,
          MADAYI CO OPERATIVE RURAL BANK, MADAYI. P.O.,
          KANNUR DISTRICT., PIN - 670304.

    2     THE AUTHORISED OFFICER
          THE MADAYI CO OPERATIVE RURAL BANK
          MADAYI CO OPERATIVE RURAL BANK,
          KANNUR DISTRICT., PIN - 670304.

    3     THE SPECIAL SALE OFFICER
          THE MADAYI CO OPERATIVE RURAL BANK,
          OFFICE OF THE THE ASSISTANT REGISTRAR (GENERAL)
          OFFICE, PAYYANUR P.O, KANNUR PIN - 670307.
 W.P.(C)No.32703 of 2024
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         BY ADV M.SASINDRAN

     THIS WRIT PETITION       (CIVIL) HAVING COME UP   FOR
ADMISSION ON 30.10.2024,      THE COURT ON THE SAME    DAY
DELIVERED THE FOLLOWING:
 W.P.(C)No.32703 of 2024
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                         JUDGMENT

Dated this the 30th day of October, 2024

The petitioner has approached this Court aggrieved by

the coercive proceedings for recovery of financial advance

made by the Madayi Co-operative Bank to the petitioner,

invoking the provisions of the Kerala Co-operative Societies

Act, 1969.

2. The Bank paid ₹12.70 lakhs to the petitioner

as loan in the year 2016. The petitioner states that though the

petitioner 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.

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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

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 in the year 2016. The petitioner

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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 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

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 30.10.2024 is ₹21,75,861/-.

8. I have heard the learned Counsel for the

petitioner and the learned Standing Counsel representing the

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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

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          in    10     equal   and

consecutive monthly instalments, along with

accruing interest and other Bank charges, if

any. The first of such instalments shall be paid

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on or before 02.12.2024.

(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

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) 32703/2024

PETITIONER EXHIBIT

Exhibit P1 TRUE COPY OF THE SALE NOTICE DATED 24-08-2024 ISSUED BY THE SPECIAL SALE OFFICER OF THE BANK TO THE PETITIONER