Kerala High Court
Subramanyan vs Special Sale Officer on 30 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:81278
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. 34400 OF 2024
PETITIONERS:
1 SUBRAMANYAN
AGED 60 YEARS, S/O SUKUMARAN, MADAMBI HOUSE,
ENGANDIYOOR,KUNDALIYOOR,THRISSUR, PIN - 680 616.
2 BINDHU
AGED 52 YEARS, W/O SUBRAMANYAN,MADAMBI HOUSE,
ENGANDIYOOR,KUNDALIYOOR,THRISSUR, PIN - 680 616.
BY ADVS.
MANSOOR.B.H.
SAKEENA BEEGUM
RESPONDENTS:
1 SPECIAL SALE OFFICER
CHAVAKKAD FIRKA CO -OPERATIVE RURAL BANK GROUP.
ASISSTANT REGISTRAR(GENERAL)OFFICE,
CHAVAKKAD THRISSUR DISTRICT, PIN - 680 506.
2 ENGANDIYOOR FARMERS CO-OPERATIVE RURAL BANK
HEAD OFFICE, CHETTUVA, ENGANDIYOOR,THRISSUR ,
REPRESENTED BY ITS SECRETARY, PIN - 680 616.
BY ADV
RASMI NAIR . T
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 30.10.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
2024:KER:81278
WP(C) No.34400 of 2024
:2:
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 Engandiyoor Farmers Co-operative Rural Bank
to the petitioners, invoking the provisions of the Kerala State
Co-operative Agricultural and Rural Development Banks Act,
1984.
2. The Bank paid ₹21,58,000/- to the 1st
petitioner and ₹25 lakhs to the 2nd petitioner as Loan in the
years 2016 and 2017. 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.
2024:KER:81278
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 Exts.P1 and P2 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
2024:KER:81278
the loans were given to the petitioners in the years 2016 and
2017. 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 the Kerala State
Co-operative Agricultural and Rural Development Banks Act,
1984. The impugned Exts.P1 and P2 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
2024:KER:81278
Counsel submitted that the total outstanding amount due to
the Bank from the petitioners is ₹73,27,472/-.
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 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 ₹73,27,472/- in 20
2024:KER:81278
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 in accordance with
law.
(iii) 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:81278
APPENDIX OF WP(C) 34400/2024
PETITIONERS' EXHIBITS
Exhibit P1 TRUE COPY OF THE SALE NOTICE ISSUED TO
THE 1ST PETITIONER IN E.P NO.1316/2023
ISSUED BY THE 2ND RESPONDENT IN
RESPECT OF ARC NO;4352/22 DATED
23.8.2024.
Exhibit P2 TRUE COPY OF THE SALE NOTICE ISSUED TO
THE 2ND PETITIONER IN E.P NO:1317/2023
ISSUED BY THE 2ND RESPONDENT IN
RESPECT OF ARC NO.4353/2022 DATED
23.8.2024.
