Kerala High Court
Ashokan. V.V vs The Kottacheri Service Co Operative ... on 13 September, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:70057
W.P.(C) No.25804/2024
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 13TH DAY OF SEPTEMBER 2024/22ND BHADRA, 1946
WP(C) NO. 25804 OF 2024
PETITIONERS:
ASHOKAN V.V.,
AGED 54 YEARS,
S/O. V V KUNHIKKORAN,
VALIYA VEETTIL,
ADOTTU, AJANUR P.O,
HOSDURG TALUK,
KASARGOD DISTRICT,
PIN - 671531
BY ADVS.
M.ANUROOP
M.DEVESH
MURSHID ALI M.
RESPONDENTS:
1 THE KOTTACHERI SERVICE CO OPERATIVE BANK,
REPRESENTED BY THE SECRETARY, KOTTACHERI
BRANCH, HOSDURG,
KASARGOD DISTRICT,
PIN - 671315
2 THE AUTHORISED OFFICER,
THE KOTTACHERI SERVICE CO OPERATIVE BANK,
KOTTACHERI BRANCH, HOSDURG,
KASARGOD DISTRICT,
PIN - 671315
3 THE JUNIOR INSPECTOR OF SPECIAL SALE OFFICER
THE ASSISTANT REGISTRAR (GENERAL) OFFICE,
HOSDURG P.O, KASARGOD DISTRICT,
PIN - 671315
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W.P.(C) No.25804/2024
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BY ADV. ARUNKUMAR A
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY
HEARD ON 13.09.2024, THE COURT ON THE SAME DAY DELIVERED
THE FOLLOWING:
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W.P.(C) No.25804/2024
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JUDGMENT
Dated this the 13th day of September, 2024
The petitioner has approached this Court aggrieved
by the coercive proceedings for recovery of financial advance
made by the Kottacheri Service Co-operative Bank to the
petitioner, invoking the provisions of the Kerala Co-operative
Societies Act, 1969.
2. The Bank paid ₹4.5 lakhs to the petitioner as
Business Loan in the year 2015. 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 later. It happened due to reasons beyond the
control of the petitioner.
3. Though the petitioner requested the Bank to
permit the petitioner to repay the outstanding amounts in easy
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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 Ext.P1 notice.
4. The petitioner states that he is still in a
position to clear the outstanding 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 2015. The
petitioner committed default in repaying the loan.
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
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go, than to proceed against the petitioner invoking the
provisions of the Kerala Co-operative Societies Act, 1969.
The impugned Ext.P1 notice was 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 make a substantial
payment soon and remit the balance outstanding amount
immediately thereafter, 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 13.09.2024 is ₹8,81,505/-.
8. I have heard the counsel for the petitioner
and the Standing Counsel representing the Bank.
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 of the
account occurred lately due to reasons beyond the control of
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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 ₹8,81,505/- in 15
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 14.10.2024.
(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.
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(iii) If the petitioner pays the amount as
directed above, any coercive proceedings
against the petitioner will stand deferred.
Sd/-
N. NAGARESH
JUDGE
SR
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APPENDIX OF WP(C) 25804/2024
PETITIONER'S EXHIBITS:
Exhibit P1 TRUE COPY OF THE SALE NOTICE DATED 10-
06-2024 ISSUED TO THE PETITIONER.
