Aneesh Babu vs Kerala State Co-Operative Bank
2025 Latest Caselaw 2538 Ker

Citation : 2025 Latest Caselaw 2538 Ker
Judgement Date : 17 January, 2025

Kerala High Court

Aneesh Babu vs Kerala State Co-Operative Bank on 17 January, 2025

Author: N.Nagaresh

Bench: N.Nagaresh

                                                    2025:KER:3933

               IN THE HIGH COURT OF KERALA AT ERNAKULAM

                               PRESENT

                THE HONOURABLE MR.JUSTICE N.NAGARESH

    FRIDAY, THE 17TH DAY OF JANUARY 2025 / 27TH POUSHA, 1946

                       WP(C) NO. 1877 OF 2025


PETITIONERS:
     1     ANEESH BABU,
           AGED 37 YEARS,
           S/O ASHOK BABU, PARUTHIVILA PUTHEN VEEDU,
           NADUMBANA, NALLILA P.O, NEDUMPANA,
           KOLLAM, KERALA, PIN - 691515

    2     AJEESH BABU,
          AGED 33 YEARS,
          S/O ASHOK BABU, PARUTHIVILA PUTHEN VEEDU,
          NADUMBANA, NALLILA P.O, NEDUMPANA,
          KOLLAM, KERALA, PIN - 691515

          BY ADVS.
          AMAL PARTHASARADHY
          GIBI.C.GEORGE
          ASHISH R.


RESPONDENTS:

    1     KERALA STATE CO-OPERATIVE BANK,
          REPRESENTED BY ITS AUTHORIZED OFFICER,
          NALLILA BRANCH, KERALA STATE CO-OPERATIVE BANK,
          CHATHANOOR, KOLLAM, KERALA, PIN - 691572

    2     THE AUTHORIZED OFFICER,
          KERALA STATE CO-OPERATIVE BANK,
          NALLILA BRANCH, CHATHANOOR,
          KOLLAM, KERALA, PIN - 691572

          BY ADV.SRI.P.C.SASIDHARAN, SC

      THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
17.01.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
                                                      2025:KER:3933
W.P.(C) No.1877/2025
                                 :2:




                            JUDGMENT

Dated this the 17th day of January, 2025

The petitioners have approached this Court aggrieved

by the coercive proceedings for recovery of financial advance

made by the 1st respondent-Bank to the petitioners, invoking the

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

2. The Bank paid ₹14 lakhs to the petitioners'

father as Mortgage Loan in the year 2020. The petitioners state

that though the petitioners' father 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 petitioners' father.

3. Though the petitioners requested the Bank to

permit the petitioners to repay the overdue amounts in easy 2025:KER:3933

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 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 respondents are 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 respondents, it is submitted that the

loan was given to the petitioners' father in the year 2020. The

petitioners' father committed default in repaying the loan.

6. The Bank repeatedly reminded the petitioners'

father and required him to clear the dues. The petitioners' father 2025:KER:3933

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 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 make a substantial

payment soon and remit the balance overdue 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 16.01.2025 is ₹21,32,525/- and the overdue

amount as on 16.01.2025 is ₹7,51,450/-.

8. I have heard the counsel for the petitioners

and the Standing Counsel representing the Bank.

2025:KER:3933

9. The specific case of the petitioners is that the

petitioners' father 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 the petitioners. The petitioners' father 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 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 ₹1 lakh within a period of one month from

today.

(ii) The petitioners shall remit the balance

overdue amount in subsequent consecutive 12 2025:KER:3933

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

respondents will be at liberty to continue with

coercive proceedings against the petitioners in

accordance with law.