Kerala High Court

Deepthi Biju vs State Of Kerala on 7 January, 2025

Author: N.Nagaresh

Bench: N.Nagaresh

                                                     2025:KER:99




         IN THE HIGH COURT OF KERALA AT ERNAKULAM

                            PRESENT

              THE HONOURABLE MR.JUSTICE N.NAGARESH

 TUESDAY, THE 7TH DAY OF JANUARY 2025 / 17TH POUSHA, 1946

                    WP(C) NO. 18950 OF 2024

PETITIONER:

         BIJU KURIAN,
         AGED 47 YEARS,
         S/O. KURIAN, THUMBASSERIL HOUSE,
         KOTHANALLUR VILLAGE, VAIKOM TALUK,
         KOTTAYAM DISTRICT, PIN - 686632

         BY ADVS.
         P.M.JOSEPH
         P.S.SAJEEV (CHIRAYIL)
         SIBY MATHEW (PULPRA)


RESPONDENTS:

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

    2    THE REGISTRAR OF CO-OPERATIVE SOCIETIES,
         THIRUVANANTHAPURAM, PIN - 695001

    3    THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
         KOTTAYAM DISTRICT, PIN - 686002

    4    THE ASSISTANT REGISTRAR OF CO-OPERATIVE
         SOCIETIES (GENERAL),
         VAIKOM, KOTTAYAM DISTRICT, PIN - 686141
                                                     2025:KER:99
W.P.(C) Nos.18950 & 19394/2024

                                 :2:


     5     MNJOOR SERVICE CO-OPERATIVE BANK LIMITED.
           NO. K 73,
           MANJOOR P.O.,
           KOTTAYAM DISTRICT, PIN - 686603

           BY ADVS.
           VARGHESE C.KURIAKOSE
           AMRITHA.J(K/552/2020)
           KURUVILLA MATHEW(K/426/2023)
           VIPIN C. VARGHESE(K/000507/2023)
           SMT.SHEEJA C.S., SR.GOVERNMENT PLEADER


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 12.09.2024, ALONG WITH WP(C).19394/2024, THE
COURT ON 07.01.2025 DELIVERED THE FOLLOWING:
                                                      2025:KER:99
W.P.(C) Nos.18950 & 19394/2024

                                   :3:




           IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                 PRESENT

              THE HONOURABLE MR.JUSTICE N.NAGARESH

  TUESDAY, THE 7TH DAY OF JANUARY 2025 / 17TH POUSHA, 1946

                     WP(C) NO. 19394 OF 2024

PETITIONER:

           DEEPTHI BIJU,
           AGED 37 YEARS,
           W/O. BIJU KURIAN, THUMBASSERIL HOUSE,
           KOTHANALLUR VILLAGE, VAIKOM TALUK,
           KOTTAYAM DISTRICT, PIN - 686632

           BY ADVS.
           P.M.JOSEPH
           P.S.SAJEEV (CHIRAYIL)
           SIBY MATHEW (PULPRA)


RESPONDENTS:

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

     2     THE REGISTRAR OF CO-OPERATIVE SOCIETIES
           THIRUVANANTHAPURAM, PIN - 695001

     3     THE JOINT REGISTRAR OF CO-OPERATIVE
           SOCIETIES
           KOTTAYAM DISTRICT, PIN - 686002
                                                  2025:KER:99
W.P.(C) Nos.18950 & 19394/2024

                                 :4:

     4     THE ASSISTANT REGISTRAR OF CO-OPERATIVE
           SOCIETIES (GENERAL)
           VAIKOM, KOTTAYAM DISTRICT, PIN - 686141

     5     MANJOOR SERVICE CO-OPERATIVE BANK
           LIMITED.NO.K 73,
           MANJOOR P.O.,
           KOTTAYAM DISTRICT, PIN - 686603


           BY ADV.
           VARGHESE C.KURIAKOSE
           SHEEJA C.S., SR.GOVERNMENT PLEADER

     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 12.09.2024, ALONG WITH WP(C).18950/2024, THE
COURT ON 07.01.2025 DELIVERED THE FOLLOWING:
                                                                          2025:KER:99
W.P.(C) Nos.18950 & 19394/2024

                                          :5:




                               N. NAGARESH, J.

              `````````````````````````````````````````````````````````````
                 W.P.(C) Nos.18950 and 19394 of 2024

              `````````````````````````````````````````````````````````````
                   Dated this the 7th day of January, 2025


                                JUDGMENT

~~~~~~~~~

The petitioners in W.P.(C) Nos.18950 and

19394 of 2024, who are members of the 5 th respondent-Co-

operative Bank are aggrieved by the interim order passed under

Sections 69 and 70 read with Rules 67 and 68 of the Kerala Co-

operative Societies Act and the Rules, in the petitions filed by

the petitioners in arbitration proceedings initiated by the 4 th

respondent.

2. The petitioners state that they were served with

notice dated 12.12.2014, in which it was stated that the 2025:KER:99 W.P.(C) Nos.18950 & 19394/2024

petitioners had obtained loans and amounts are due and

payable to the Bank now. The petitioners were directed to remit

the amount on or before 23.12.2014, as per Ext.P1 notice. The

petitioners state that it was the father-in-law of the petitioner in

W.P.(C) No.18950 of 2024, who obtained the loan during the

year 2012, mortgaging 40 Cents of landed property of the

petitioner. The petitioner's father-in-law obtained the loan with

the help of a Director Board member. The petitioner approached

his father-in-law and there was an oral settlement pursuant to

which the father-in-law remitted ₹24 lakhs to the 5 th respondent-

Bank. The father-in-law thereafter entered into Ext.P2

agreement dated 27.07.2015 with the petitioner.

3. The petitioner states that the father-in-law

violated the terms of the agreement and did not clear the loan

account. The petitioner preferred complaints before the

Kaduthuruty Police and the Superintendent of Police, Kottayam,

seeking to make an enquiry in the matter.

2025:KER:99 W.P.(C) Nos.18950 & 19394/2024

4. The secretary of the 5th respondent-Bank filed

Ext.P3 A.R.C. No.770 of 2016 before the 4 th respondent for

realising an amount of ₹21,39,744/- which was the liability up to

30.06.2016. The petitioner, thereupon, submitted Ext.P4 request

seeking copies of 28 documents, in order to defend the A.R.C.

effectively. The counsel appearing for the Bank handed over

copies of certain documents. From the documents, the petitioner

found that only one Director has signed the valuation report.

5. On 11.01.2022, the Secretary and Manager of

the Bank along with three persons came to the petitioners'

house and informed that the property of the petitioners will be

put to sale and a sale notice will be published soon. The

petitioner, therefore, filed Ext.P7 interim petition before the

Arbitration Court seeking direction to give copies of 19

documents to the petitioner for defending the A.R.C. The

petitioner needs these crucial documents which would reveal

fraud and collusion. However, the Secretary of the Bank filed 2025:KER:99 W.P.(C) Nos.18950 & 19394/2024

Ext.P8 objection to the request made by the petitioner.

6. The 4th respondent rejected the application of

the petitioners as per Ext.P9 order stating that the 5 th

respondent has produced enough documents for filing the plaint

and that the documents sought by the petitioners cannot be

granted at this stage. The petitioners are aggrieved by Ext.P9

order.

7. The petitioners state that Ext.P9 interim order

is illegal and arbitrary. The Arbitrator failed to properly

appreciate the facts of the case in its true perspective. There is

error apparent on the face of Ext.P9 order. Unless the

documents sought for by the petitioners are provided, the

petitioners will not be able to establish that the alleged

borrowers were not disbursed with the loan amounts.

8. The 5th respondent resisted the writ petition

filing counter affidavit. The 5th respondent submitted that

petitioners are the borrowers of the loan and are guarantors to 2025:KER:99 W.P.(C) Nos.18950 & 19394/2024

another loan. The property of the petitioners was mortgaged as

security. The attempt of the petitioners is to protract the

proceedings for recovery. There is nothing wrong in Ext.P9

order. The writ petition is liable to be dismissed, contended the

5th respondent.

9. I have heard the learned Counsel for the

petitioners, the learned Senior Government Pleader

representing respondents 1 to 4 and the learned counsel

appearing for the 5th respondent.

10. The petitioners state that the father-in-

law/father of the petitioners obtained a loan pledging the

property of the petitioners as security, without their knowledge.

The petitioners took up the matter with the father and there was

an understanding that he will remit the loan amounts to the

Bank. The terms of the agreement were violated. The petitioners

filed complaint before the Superintendent of Police which was of

no avail. The Secretary of the Bank, thereafter, filed A.R.C. 2025:KER:99 W.P.(C) Nos.18950 & 19394/2024

No.770 of 2016. The petitioners submitted applications

requesting to provide copies of certain documents in order to

defend the A.R.C. Those documents were not given to the

petitioners. The applications submitted by the petitioners before

the Arbitration Court for supply of documents stand rejected as

per Ext.P9 interim order. Ext.P9 interim order is under

challenge.

11. In Ext.P9 interim order, the Arbitration Court

noted that the petitioners are members of the Bank and that they

can approach the Bank directly and file applications for copies of

documents under Section 103 of the Kerala Co-operative

Societies Act, 1969. The petitioners did not do so. Without doing

so, the petitioners have submitted an application before the

Arbitrator just before the evidence stage.

12. The Arbitrator noted that the petitioners could

have obtained copies of loan applications directly from the Bank.

If Statement of Accounts are necessary, the Arbitration Court 2025:KER:99 W.P.(C) Nos.18950 & 19394/2024

can require the Bank to produce the same at the time of

evidence and at that stage, the petitioners can peruse the same.

Copies of vouchers can be obtained from the Bank under

Section 103. For all the afore reasons, the Arbitration Court

found that the direction sought for by the petitioners cannot be

granted at this stage of arbitral proceedings.

13. I find that the reasoning of the Arbitration Court

for declining the interim relief sought for by the petitioners is just

and proper. I find no reason to interfere with Ext.P9 orders.

The writ petitions are therefore dismissed.

Sd/-

N. NAGARESH, JUDGE aks/06.01.2025 2025:KER:99 W.P.(C) Nos.18950 & 19394/2024

APPENDIX OF WP(C) 18950/2024

PETITIONER'S EXHIBITS:

Exhibit-P1 TRUE COPY OF THE NOTICE DATED 12.12.2014 ISSUED BY THE MANAGER OF THE 5TH RESPONDENT TO THE PETITIONER.

Exhibit-P2 TRUE COPY OF THE AGREEMENT BETWEEN THE PETITIONER, SISTER OF HIS WIFE AND HIS FATHER-IN-LAW DATED 27.07.2015.

Exhibit-P3 TRUE COPY OF THE ARC NO.770/2016 FILED BY THE SECRETARY OF THE 5TH RESPONDENT BEFORE THE 4TH RESPONDENT DATED 04.07.2016.

Exhibit-P4 TRUE COPIES OF THE AFFIDAVIT AND PETITIONS DATED 20.06.2018 AND 27.06.2018.

Exhibit-P5 TRUE COPY OF THE REPORT DATED 24.07.2012 OF THE COMMITTEE.

Exhibit-P6 TRUE COPY OF THE COMPLIANT SUBMITTED BY THE PETITIONER AND HIS WIFE BEFORE THE 3RD RESPONDENT DATED 25.01.2022.

Exhibit-P7 TRUE COPY OF THE AFFIDAVIT AND PETITION FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT DATED 18.10.2023.

Exhibit-P8 TRUE COPY OF THE OBJECTION FILED BY THE SECRETARY OF THE 5TH RESPONDENT BEFORE THE 4TH RESPONDENT DATED 21.10.2023.

ExhibitP9 TRUE COPY OF THE INTERIM ORDER PASSED BY THE 4TH RESPONDENT DATED 02.05.2024 IN ARC NO.770/2016.

2025:KER:99 W.P.(C) Nos.18950 & 19394/2024

RESPONDENTS' EXHIBITS:

Ext.R(5)(a) True copy of the loan sanction letter dated 14.01.2015

Ext.R(5)(b) True copy of the loan application dated 05.01.2015 submitted in loan No.OF-I-717

Ext.R(5)(c) True copy of the loan application dated 05.01.2015 submitted in loan No.OF-I-716

Ext.R(5)(d) True copy of the receipt dated 05.01.2015 issued by the wife of the petitioner

Ext.R(5)(e) True copy of the plaint in ARC No.769/2016 Dated 04.07.2016 ,Vaikom Cooperative Societies, Asst Registrar (General) Vaikom.

Ext.R(5)(f) True copy of the summons dated 03.10.2016 issued by Arbitrator, Cooperative Societies,attached to the office of Asst Registrar (General) Vaikom.

Ext.R(5)(g) True copy of the decision taken by committee on 05.05.2016 for initiating ARC against Deepthi Biju

Ext.R(5)(h) True copy of the plaint in ARC No.770/2016 ( loan No.OF-I-

717)Cooperative Societies,attached to the office of Asst Registrar (General) Vaikom.

Ext.R(5)(i) True copy of the Summons dated 08.10.2016 issued by the special sale officer, the Arbitrator in ARC

2025:KER:99 W.P.(C) Nos.18950 & 19394/2024

Ext.R(5)(j) True copy of the decision taken by board of directors on 05.05.2016 for initiating ARC 2025:KER:99 W.P.(C) Nos.18950 & 19394/2024

PETITIONER'S EXHIBITS:

Exhibit-P1 TRUE COPY OF THE NOTICE DATED 12.12.2014 ISSUED BY THE MANAGER OF THE 5TH RESPONDENT TO THE PETITIONER.

Exhibit-P2 TRUE COPY OF THE AGREEMENT BETWEEN THE HUSBAND OF THE PETITIONER, HER SISTER AND HER FATHER DATED 27.07.2015.

Exhibit-P3 TRUE COPY OF THE ARC NO.769/2016 FILED BY THE SECRETARY OF THE 5TH RESPONDENT BEFORE THE 4TH RESPONDENT DATED 04.07.2016.

Exhibit-P4 TRUE COPY OF THE AFFIDAVIT AND PETITION DATED 13.06.2018.

Exhibit-P5 TRUE COPY OF THE REPORT DATED 24.07.2012 OF THE COMMITTEE.

Exhibit-P6 TRUE COPY OF THE COMPLIANT SUBMITTED BY THE PETITIONER AND HER HUSBAND BEFORE THE 3RD RESPONDENT DATED 25.01.2022.

Exhibit-P7 TRUE COPY OF THE AFFIDAVIT AND PETITION FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT DATED 18.10.2023.

Exhibit-P8 TRUE COPY OF THE OBJECTION FILED BY THE SECRETARY OF THE 5TH RESPONDENT BEFORE THE 4TH RESPONDENT DATED 21.10.2023.

Exhibit-P9 TRUE COPY OF THE INTERIM ORDER PASSED BY THE 4TH RESPONDENT DATED 02.05.2024 IN ARC NO.769/2016.

NO.18950/2024 DATED 24.05.2024 OF THIS HON'BLE COURT.

RESPONDENTS' EXHIBITS:

Ext R5(a) True copy of the loan sanction letter dated 14.01.2015 Ext R5(b) True copy of the loan application dated 05.01.2015 submitted in loan No.OF-I-716 Ext R5(c) True copy of the loan application dated 05.01.2015 submitted in loan No.OF-I-717 Ext R5(d) True copy of the receipt dated 05.01.2015 issued by the husband of the petitioner Ext R5(f) True copy of the summons dated 03.10.2016 issued by Arbitrator, Co-

operative Societies, attached to the office of Asst Registrar (General), Vaikom.

Ext R5(g) True copy of the decision taken by Committee on 05.05.2016 for initiating ARC against petitioner and her husband Ext R5(h) True copy of the plaint in ARC No.770/2016 ( loan No.OF-I-717) Co- operative Societies, attached to the office of Asst Registrar(General), Vaikom.

Ext R5(i) True copy of the Summons dated 08.10.2016 issued by the Special Sale Officer, the Arbitrator in ARC

Ext R5(j) True copy of the decision taken by Board of Directors on 05.05.2016 for initiating ARC Ext R5(e) True copy of the plaint in ARC No.769/2016 Co-operative Societies, attached to the office of Asst Registrar(General), Vaikom.