Kerala High Court
Jayalekshmy vs Chathannoor Regional Service ... on 25 September, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:71485
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 25TH DAY OF SEPTEMBER 2024/3RD ASWINA, 1946
WP(C) NO. 32503 OF 2024
PETITIONERS:
1 JAYALEKSHMY
AGED 55 YEARS, W/O. SANKARANARAYANA PILLAI,
RESIDING AT JAI JANAKI, SAKTHIKULANGARA P.O,
KOLLAM, PIN - 691 581.
2 ANITHA KUMARI
AGED 54 YEARS, W/O. GOPALAKRISHNAN PILLAI, RESIDING
AT KRISHNA HOUSE, THAZHAM,
MEENADU, KOLLAM-, PIN - 691 572.
BY ADVS.
S.JATHIN DAS
ARUN S.
S.SOUMYA ISSAC
B.DEEPALAKSHMI
RESPONDENT:
CHATHANNOOR REGIONAL SERVICE CO-OPERATIVE BANK,
LTD. NO. Q153, KOTHERI, CHATHANOOR POST, KOLLAM,
KERALA REPRESENTED BY ITS'
AUTHORIZED OFFICER, PIN - 691 572.
BY ADVS.
SUDEEP ARAVIND PANICKER
A.S.DILEEP(K/655/1987)
P.BINOD(K/647/1987)
K.Y.SUDHEENDRAN(K/000625/1987)
SUSEELA DILEEP(S-1307)
K.N.HARISHANKAR(K/001647/2023)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 25.09.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
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WP(C) No.32503 of 2024
:2:
JUDGMENT
Dated this the 25th day of September, 2024
The petitioners have approached this Court
aggrieved by the coercive proceedings for recovery of
financial advance made by the Chathanoor Regional Service
Co-operative Bank Limited to the petitioners, invoking the
provisions of the Kerala Co-operative Societies Act, 1969.
2. The Bank paid ₹25 lakhs to the petitioners
as Loan in the year 2015. 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
loan 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
easy monthly instalments, the Bank authorities were not
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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 petitioners state that they are 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 respondent is 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 respondent, it is submitted that
the loan was given to the petitioners in the year 2015. The
petitioners committed default in repaying the loan.
6. The Bank repeatedly reminded the
petitioners and required them to clear the dues. The
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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 Ext.P1 was
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 18.09.2024 is ₹63,26,728/-.
8. I have heard the counsel for the petitioners
and the Standing Counsel representing the Bank.
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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 loan 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 ₹15
lakhs within a period of one month and the
balance outstanding amount in 10
consecutive and equal monthly instalments
thereafter along with accruing interest and
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other Bank charges, if any.
(ii) If the petitioners commit single
default in making payments as directed
above, the respondent 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:71485
APPENDIX OF WP(C) 32503/2024
PETITIONERS' EXHIBIT
Exhibit P1 TRUE COPY OF THE AUCTION-CUM-SALE
NOTICE DATED 21.08.2024 ISSUED BY THE
RESPONDENT.
