Muhammedkutty K vs State Of Kerala
2024 Latest Caselaw 27224 Ker

Citation : 2024 Latest Caselaw 27224 Ker
Judgement Date : 11 September, 2024

Kerala High Court

Muhammedkutty K vs State Of Kerala on 11 September, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

                                             2024:KER:69229

        IN THE HIGH COURT OF KERALA AT ERNAKULAM
                          PRESENT
          THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 11TH DAY OF SEPTEMBER 2024 / 20TH BHADRA, 1946
                 WP(C) NO. 23006 OF 2024
PETITIONER:

         MUHAMMEDKUTTY K
         AGED 60 YEARS, SON OFMARAKKAR,
         KODIYIL HOUSE, ANAKKARA, KUMBIDI P.O.,
         PALAKKAD DISTRICT, PIN - 679553.

         BY ADVS.
         ISAC T.PAUL
         JOHN NELLIMALA SARAI



RESPONDENTS:

    1    STATE OF KERALA
         REPRESENTED BY SECRETARY, DEPARTMENT OF
         CO-OPERATION. GOVERNMENT SECRETARIAT,
         THIRUVANANTHAPURAM., PIN - 695001.

    2    REGISTRAR OF CO-OPERATIVE SOCIETY
         DPI JUNCTION, THYCAUD P.O.,
         THIRUVANANTHAPURAM, PIN - 695014.

    3    SENIOR INSPECTOR/SPECIAL SALES OFFICER
         OFFICE OF THE ASSISTANT REGISTRAR OF CO-
         OPERATIVE SOCIETIES (GENERAL) PATTAMBI,
         PALAKKAD DISTRICT, PIN - 673303.

    4    THRITHALASERVICE CO-OPERATIVE BANK LTD.
         MULAKKAL COMPLEX, THRITHALA,
         PALAKKAD DISTRICT, PIN - 679534
         REPRESENTED BY BRANCH MANAGER.
 W.P.(C)No.23006 of 2024
                                          2024:KER:69229
                           :2:



         BY ADVS.
         SMT.SHEEJA C.S, SR.GOVERNMENT PLEADER
         SRI.MILLU DANDAPANI
         SMT.SUMATHY DANDAPANI


     THIS WRIT PETITION (CIVIL) HAVING COME UP        FOR
ADMISSION ON 11.09.2024, THE COURT ON THE SAME        DAY
DELIVERED THE FOLLOWING:
 W.P.(C)No.23006 of 2024
                                               2024:KER:69229
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                       JUDGMENT

Dated this the 11th day of September, 2024

The petitioner has approached this Court aggrieved by

the coercive proceedings for recovery of financial advance

made by the Thrithala Service Co-operative Bank to the

petitioner, invoking the provisions of the Kerala Co-operative

Societies Act, 1969.

2. The Bank paid ₹40 lakhs to the petitioner as

Mortgage Loan in the year 2017. The petitioner states that

though the petitioner made remittances promptly during the

initial repayment period of the financial advance, he 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.

2024:KER:69229

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 Exts.P1 and P3 notices.

4. The petitioner states that he 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, he 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 2017. The petitioner

committed default in repaying the loan.

2024:KER:69229

6. The Bank repeatedly reminded the petitioner and

required him 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 Exts.P1 and P3 notices were 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 02.09.2024 is ₹56,61,501/-.

8. I have heard the learned Counsel for the petitioner

and the learned Standing Counsel representing the 4 th

2024:KER:69229

respondent. I have also heard the learned Government Pleader

representing respondents 1 to 3.

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 of ₹56,61,501/- in eight equal and

consecutive monthly instalments along with

accruing interest and other Bank charges, if

2024:KER:69229

any. The first of such instalments shall be paid

on or before 11.10.2024.

(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.