Kerala High Court
Sudheer.A vs The Varkala Co-Operative Agricultural ... on 30 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:81305
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. 32945 OF 2024
PETITIONERS:
1 SUDHEER.A,
AGED 48 YEARS, S/O ABDUL HUSSAIN
ANEESHYA MANZIL, NEAR JEM KNOW SCHOOL,
VETTOOR P.O, THIRUVANANTHAPURAM,
PIN - 695 312.
2 ANEESHYA
AGED 42 YEARS, W/O SUDHEER ANEESHYA MANZIL,
NEAR JEM KNOW SCHOOL, VETTOOR P.O,
THIRUVANANTHAPURAM, PIN - 695 312.
3 HUSSAIN SUDHEER,
AGED 24 YEARS, S/O SUDHEER ANEESHYA MANZIL,
NEAR JEM KNOW SCHOOL, VETTOOR P.O,
THIRUVANANTHAPURAM, PIN - 695 312.
4 PRASANNA. S,
AGED 42 YEARS, W/O RAVI ANEESHYA MANZIL,
NEAR JEM KNOW SCHOOL, VETTOOR P.O,
THIRUVANANTHAPURAM, PIN - 695 312.
BY ADVS.
JAYASREE K.P.
JOHN JOSEPH
RESPONDENTS:
1 THE VARKALA CO-OPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK LTD. NO. T,2039
MAITHANAM, VARKALA P.O, THIRUVANATHAPURAM
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WP(C) No.32945 of 2024
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REPRESENTED BY ITS SECRETARY/MANAGER.,
PIN - 695 141.
2 THE SPECIAL SALES OFFICER,
THE VARKALA CO-OPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK LTD. NO. T,2039 MAITHANAM,
VARKALA P.O, THIRUVANATHAPURAM, PIN - 695 141.
BY ADVS.
T.R.HARIKUMAR
ARJUN RAGHAVAN(K/1277/2012)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 30.10.2024, THE COURT ON THE SAME DAY DELIVERED
THE FOLLOWING:
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WP(C) No.32945 of 2024
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JUDGMENT
Dated this the 30th day of October, 2024
The petitioners have approached this Court aggrieved
by the coercive proceedings for recovery of financial advance
made by the Varkala Co-operative Agricultural and Rural
Development Bank Limited to the petitioners, invoking the
provisions of the Kerala State Co-operative Agricultural and
Rural Development Banks Act, 1984.
2. The Bank paid ₹20 lakhs to the petitioners as
Loans. The petitioners state that though the petitioners made
remittances promptly during the initial repayment period of the
financial advance, they could not pay the repayment instalments
promptly later. The repayment of loans fell into arrears later. It
happened due to reasons beyond the control of the petitioners.
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
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provisions of the Kerala State Co-operative Agricultural and
Rural Development Banks Act, 1984 and issued Exts.P1 to P4
notices.
4. The petitioners state that they are still in a
position to clear the overdue amounts towards the loans, 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
loans were given to the petitioners. The petitioners committed
default in repaying the loans.
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
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the Kerala State Co-operative Agricultural and Rural
Development Banks Act, 1984. The impugned Exts.P1 to P4
were 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 make a substantial
payment soon and remit the balance overdue amount
immediately thereafter, 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 ₹20,88,358/- and the overdue amount as on
30.10.2024 is ₹5,74,212/-.
8. I have heard the counsel for the petitioners and
the Standing Counsel representing the Bank.
9. The specific case of the petitioners is that the
petitioners have been making the repayment and maintaining the
loan accounts initially. The default in repayment of the loans
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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 ₹5,74,212/- in 12 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
02.12.2024.
(ii) If the petitioners commit single default
in making payments as directed above, the
respondents will be at liberty to continue with
the coercive proceedings against the petitioners
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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
AMR
2024:KER:81305
APPENDIX OF WP(C) 32945/2024
PETITIONERS' EXHIBITS
Exhibit P1 A TRUE COPY OF THE SALE NOTICE DATED
31.07.2024 ISSUED BY THE 2ND RESPONDENT
TO THE 1ST PETITIONER.
Exhibit P2 A TRUE COPY OF THE SALE NOTICE DATED
31.07.2024 ISSUED BY THE 2ND RESPONDENT
TO THE 2ND PETITIONER.
Exhibit P3 A TRUE COPY OF THE SALE NOTICE DATED
31.07.2024 ISSUED BY THE 2ND RESPONDENT
TO THE 3RD PETITIONER.
Exhibit P4 A TRUE COPY OF THE SALE NOTICE DATED
31.07.2024 ISSUED BY THE 4TH RESPONDENT
TO THE 1ST PETITIONER.
