Kerala High Court
Balan @ Balakrishnan V.V vs The Ponnani Co-Operative Agricultural ... on 25 September, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:71336
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. 6111 OF 2024
PETITIONER:
BALAN @ BALAKRISHNAN V.V
AGED 56 YEARS
S/O. KUTTAYI, VAKKELAVALAPPIL,
MARAVANCHERY, THAVANUR,
MALAPPURAM DISTRICT., PIN - 679582
BY ADVS.
K.B.ARUNKUMAR
POOJA K.S.
RESPONDENTS:
1 THE PONNANI CO-OPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK LTD.NO.M 398
REPRESENTED BY ITS BRANCH MANAGER.
PERUMBADAPPU BRANCH, ERAMANGALAM P.O,
MALAPPURAM DISTRICT, PIN - 679587
2 THE SPECIAL SALE OFFICER
THE PONNANI CO-OPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK LTD.NO.M 398,
SAGHAV E.K.IMBICHIBAVA MEMORIAL BUILDING
PONNANI,
MALAPPURAM DISTRICT
PIN-679 577
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2
BY ADVS.
V KRISHNA MENON
J.SURYA(K/1007/2005)
BINI SARAMMA(K/194/2015)
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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3
JUDGMENT
Dated this the 25th day of September, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Ponnani Co-operative Agricultural and Rural
Development Bank Limited to the petitioner, invoking the
provisions of the Kerala State Co-operative Agricultural and
Rural Development Banks Act, 1984.
2. The Bank paid ₹23 lakhs as five loans to the
petitioner 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 loans fell
into arrears later. It happened due to reasons beyond the
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control of the petitioner.
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 State Co-operative
Agricultural and Rural Development Banks Act, 1984 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.
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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 loans were given to the petitioner in the year 2015. The
petitioner committed default in repaying the loans.
6. The Bank repeatedly reminded the petitioner and
required him to clear the dues. The petitioner deliberately
omitted to do so. The petitioner's loan account was declared
as NPA in the year 2019. In the circumstances, the Bank
had no other go than to proceed against the petitioner
invoking the provisions of the Kerala State Co-operative
Agricultural and Rural Development Banks Act, 1984. The
impugned Exts.P1 and P3 were issued in these
circumstances. The petitioner has not advanced any legal
reasons to thwart the coercive proceedings initiated by the
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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 25.09.2024 is ₹31,06,897/-.
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 loan
occurred lately due to reasons beyond the control of the
petitioner. The petitioner has provided substantial security
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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 ₹31,06,897/- in 10
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 25.10.2024.
(ii) If the petitioner commits single default
in making payments as directed above, the
respondent will be at liberty to continue with
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the coercive proceedings against the
petitioner in accordance with law.
(iii) If the petitioner makes payments as
directed above, coercive proceedings, if
any, against the petitioner shall stand
deferred.
Sd/-
N.NAGARESH
JUDGE
hmh
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APPENDIX OF WP(C) 6111/2024
PETITIONER'S EXHIBITS
Exhibit P1 THE TRUE COPY OF THE NOTICE DATED
31.05.2023 ISSUED BY THE 2ND
RESPONDENT
Exhibit P2 THE TRUE COPY OF THE REPRESENTATION
DATED 31.01.2024 SUBMITTED BEFORE THE
2ND RESPONDENT
Exhibit P3 THE TRUE COPY OF THE NOTICE DATED
08.02.2024 ISSUED BY THE 2ND
RESPONDENT
RESPONDENT'S EXHIBITS
EXHIBIT R1(A) A COPY OF THE STATEMENT OF ACCOUNT AS
ON 5.3.2024 IN RESPECT OF THE
PETITIONER'S LOAN ACCOUNTS
