Kerala High Court
Binu George vs Neelur Service Co-Operative Bank Ltd on 30 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:81286
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. 34344 OF 2024
PETITIONERS:
1 BINU GEORGE
AGED 54 YEARS, S/O GEORGE EDETTU HOUSE,
KADANADU P.O., KADANADU MEENACHIL,
KOTTAYAM DISTRICT, PIN - 686 655.
2 ASHA BINU
AGED 50 YEARS, W/O BINU GEORGE EDETTU HOUSE,
KADANADU P.O OF 2024 KADENADU MEENECHIL,
KOTTAYAM DISTRICT, PIN - 686 655.
BY ADV
R.RAJASREE (CHUTTIMATTATHIL)
RESPONDENTS:
1 NEELUR SERVICE CO-OPERATIVE BANK LTD
NO.K-51 HEAD OFFICE NEELUR NEELUR P.O.,
KOTTAYAM DISTRICT
REPRESENTED BY ITS SECRETARY, PIN - 686 651.
2 THE SECRETARY
NEELUR SERVICE CO-OPERATIVE BANK NEELUR P.O.,
KOTTAYAM DISTRICT, PIN - 686 651.
3 SPECIAL SALE OFFICER
NEELUR SERVICE CO-OPERATIVE BANK GROUP,
CO-OPERATIVE SOCIETY ASSISTANT REGISTRAR (G)
OFFICE, MEENACHIL, KOTTAYAM, PIN - 686 575.
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WP(C) No.34344 of 2024
:2:
BY ADV
GEORGEKUTTY MATHEW
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.34344 of 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 Bank to Neelur Service
Co-operative Bank Limited the petitioners, invoking the
provisions of the Kerala Co-operative Societies Act, 1969.
2. The Bank paid ₹15 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
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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 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
the loans were given to the petitioners. The petitioners
committed default in repaying the loans.
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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
Co-operative Societies Act, 1969. 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
Counsel submitted that the outstanding amount due to the
Bank from the petitioners as on 18.10.2024 is ₹21,41,788/-.
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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 ₹21,41,788/- in 12
consecutive and equal monthly instalments
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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:81286
APPENDIX OF WP(C) 34344/2024
PETITIONERS' EXHIBITS
Exhibit P1 TRUE COPY OF THE NOTICE RECEIVED BY
THE 1ST PETITIONER IN EA 413/24 DATED
11.09.2024.
Exhibit P2 TRUE COPY OF THE NOTICE RECEIVED BY
THE 2ND PETITIONER IN EA NO. 30/22
11.09.2024.
