Sreehari vs Chathannoor Regional Service ...
2024 Latest Caselaw 28293 Ker

Citation : 2024 Latest Caselaw 28293 Ker
Judgement Date : 25 September, 2024

Kerala High Court

Sreehari vs Chathannoor Regional Service ... on 25 September, 2024

Author: N.Nagaresh

Bench: N.Nagaresh

                                             2024:KER:71436

        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. 32474 OF 2024

PETITIONERS:

   1     SREEHARI
         AGED 26 YEARS, S/O. SANTHOSH,
         RESIDING AT HARILAKSHMI, KARAMKODE P.O,
         MEENAD, CHATHANNOOR, KOLLAM PIN - 691579.

   2     SUJITHA
         AGED 51 YEARS, W/O. SANTHOSH,
         RESIDING AT HARILAKSHMI, KARAMCODE,
         CHATHANNOOR, MEENAD, KOLLAM PIN - 691579.

         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 PIN - 691572
         REPRESENTED BY ITS' AUTHORIZED OFFICER.

         BY ADVS.
         SUDEEP ARAVIND PANICKER
         A.S.DILEEP
         P.BINOD
         K.Y.SUDHEENDRAN
         SUSEELA DILEEP
         K.N.HARISHANKAR
 W.P.(C)No.32474 of 2024
                                    2024:KER:71436
                          :2:



     THIS WRIT PETITION (CIVIL) HAVING COME UP   FOR
ADMISSION ON 25.09.2024, THE COURT ON THE SAME   DAY
DELIVERED THE FOLLOWING:
 W.P.(C)No.32474 of 2024
                                              2024:KER:71436
                               :3:




                       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 Chathannoor Regional Service Co-operative Bank

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 2018. The petitioners state that though the petitioners

made remittances promptly during the initial repayment period

of the financial advance, they could not pay the instalments

promptly later. The repayment of loan fell into arrears. 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

2024:KER:71436

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 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 2018. The

petitioners committed default in repaying the loan.

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

2024:KER:71436

go than to proceed against the petitioners invoking the

provisions of the Kerala Co-operative Societies Act, 1969. The

impugned Ext.P1 notice 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 remit the balance

outstanding amount in instalments, 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 ₹49,17,139/-.

8. I have heard the learned Counsel for the petitioners

and the learned 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 account initially. The default in repayment occurred

lately due to reasons beyond the control of the petitioners. The

petitioners have provided substantial security which will

2024:KER:71436

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 an amount of

₹10 lakhs within a period of one month from

today.


           (ii)     The petitioners shall remit the balance

           outstanding        amount      in    subsequent

consecutive ten equal monthly instalments

thereafter, along with accruing interest and

other Bank charges, if any.

(iii) If the petitioners commit default in

making payments as directed above, the

respondent will be at liberty to continue with

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coercive proceedings against the petitioners in

accordance with law.