Vijaya Rajan vs The Special Sale Officer
2024 Latest Caselaw 30674 Ker

Citation : 2024 Latest Caselaw 30674 Ker
Judgement Date : 30 October, 2024

Kerala High Court

Vijaya Rajan vs The Special Sale Officer on 30 October, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

                                              2024:KER:81152
W.P.(C) No.34397/2024
                              :1:


          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. 34397 OF 2024

PETITIONERS:
    1    VIJAYA RAJAN,
         AGED 74 YEARS,
         S/O. MADHAVAN, SUNDARA VILASOM
         OLATHANNY,NEYYANTTINKARA P.O.,
         THIRUAVNTHAPURAM,
         PIN - 695121

    2      KUMARI MITHU J.,
           AGED 64 YEARS,
           W/O VIJAYA RAJAN,
           SUNDARA VILASOM OLATHANNY,
           NEYYANTTINKARA P.O.,
           THIRUAVNTHAPURAM,
           PIN - 695121

    3      V. MITHUN RAJ,
           AGED 25 YEARS,
           S/O VIJAYA RAJAN,
           SUNDARA VILASOM OLATHANNY,
           NEYYANTTINKARA P.O.,
           THIRUAVNTHAPURAM,
           PIN - 695121

           BY ADV.SRI.NAVEEN RADHAKRISHNAN


RESPONDENTS:

    1      THE SPECIAL SALE OFFICER,
           NEYYATTINKARA SERVICE CO-OPERATIVE GROUP,
           ASST. REGISTRAR (GENERAL) OFFICE,
           NEYYATTINKARA, PIN - 695501
                                             2024:KER:81152
W.P.(C) No.34397/2024
                             :2:



    2      NARUVAMOODU SERVICE CO-OPERATIVE BANK
           LTD.NO.160,
           BALARAMPURAM, PALLICHAL P.O.,
           REPRESENTED BY ITS SECRETARY,
           PIN - 695501


           BY ADV.
           SRI.P.N.MOHANAN

     THIS WRIT PETITION (CIVIL) HAVING COME UP        FOR
ADMISSION ON 30.10.2024, THE COURT ON THE SAME        DAY
DELIVERED THE FOLLOWING:
                                                   2024:KER:81152
W.P.(C) No.34397/2024
                                :3:




                           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 Naruvamoodu Service

Co-operative Bank Ltd. to the petitioners, invoking the

provisions of the Kerala Co-operative Societies Act, 1969.

2. The petitioners availed three loans of ₹9

lakhs from the 2nd respondent-Bank in the year 2011. 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 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 outstanding amounts in 2024:KER:81152

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 Exts.P1 to P3

notices.

4. The petitioners state that they are still in a

position to clear the outstanding 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 in the year 2011. The

petitioners committed default in repaying the loan.

2024:KER:81152

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

Co-operative Societies Act, 1969. The impugned Exts.P1 to

P3 notices 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 outstanding

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 as on 30.10.2024 is ₹12,31,647/-.

8. I have heard the counsel for the petitioners

and the Standing Counsel representing the Bank.

2024:KER:81152

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 of the account 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

outstanding amount of ₹12,31,647/- in 12

consecutive and equal monthly installments

along with accruing interest and other Bank

charges, if any. First of such installments

shall be paid on or before 30.11.2024.

2024:KER:81152

(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) If the petitioners pay the amount as

directed above, any coercive proceedings

against the petitioners will stand deferred.

Sd/-

N. NAGARESH JUDGE SR 2024:KER:81152

APPENDIX OF WP(C) 34397/2024