Hafila K vs Guruvayur Co-Operative Urban Bank Ltd
2025 Latest Caselaw 2574 Ker

Citation : 2025 Latest Caselaw 2574 Ker
Judgement Date : 17 January, 2025

Kerala High Court

Hafila K vs Guruvayur Co-Operative Urban Bank Ltd on 17 January, 2025

Author: N.Nagaresh

Bench: N.Nagaresh

                                                2025:KER:3946

         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. 1940 OF 2025

PETITIONER:

         HAFILA K.,
         AGED 55 YEARS,
         KUNNATHAPPAN,
         THIRUVATHRAMUTTIL,
         THIRUVATHRA P.O.,
         THRISSUR,
         KERALA,
         PIN - 680516

         BY ADVS.
         SRI.JAZIL DEV FERDINANTO
         SRI.KRIPA PRASAD



RESPONDENT:

         GURUVAYUR CO-OPERATIVE URBAN BANK LTD.,
         REPRESENTED BY AUTHORISED OFFICER,
         NO. F 1652, GURUVAYUR HO BRANCH,
         THRISSUR, PIN - 680101

         BY ADV.
         SRI.T.R.HARIKUMAR, 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:3946
W.P.(C) No.1940/2025
                                :2:




                             JUDGMENT

Dated this the 17th day of January, 2025

The petitioner has approached this Court aggrieved by

the coercive proceedings for recovery of financial advance

made by the respondent-Bank to the petitioner, invoking the

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

2. The Bank paid ₹20 lakhs to the petitioner as

Mortgage Loan in the year 2021. The petitioner states that

though the petitioner made remittances promptly during the

initial repayment period of the financial advance, she 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 petitioner.

3. Though the petitioner requested the Bank to

permit the petitioner to repay the overdue amounts in easy 2025:KER:3946

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 petitioner states that she 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 respondent is 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.

5. Standing Counsel entered appearance on

behalf of the Bank and denied all the statements made by the

petitioner. On behalf of the respondent, it is submitted that the

loan was given to the petitioner in the year 2021. The

petitioner committed default in repaying the loan.

6. The Bank repeatedly reminded the petitioner

and required her to clear the dues. The petitioner deliberately

omitted to do so. In the circumstances, the Bank had no other 2025:KER:3946

go, than to proceed against the petitioner invoking the

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

impugned Ext.P1 notice was issued in these circumstances.

The petitioner has not advanced any legal reasons to thwart

the coercive proceedings initiated by the 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 overdue 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 17.01.2025 is ₹24,43,981/- and the

overdue amount as on 17.01.2025 is ₹6,51,981/-.

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 account 2025:KER:3946

occurred lately due to reasons beyond the control of the

petitioner. The petitioner 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 petitioner to clear off the liability.

11. The writ petition is therefore disposed of with

the following directions:

(i) The petitioner shall remit the overdue

amount of ₹6,51,981/- in 12 consecutive and

equal monthly installments along with accruing

interest and other Bank charges, if any. First

of such installments shall be paid on or before

31.01.2025.

(ii) If the petitioner commits default in

making payments as directed above, the

respondents will be at liberty to continue with

coercive proceedings against the petitioner in 2025:KER:3946

accordance with law.

(iii) The petitioner shall also pay current

EMIs along with the aforesaid payments.

(iv) If the petitioner pays the amount as

directed above, any coercive proceedings

against the petitioner will stand deferred.

Sd/-

N. NAGARESH JUDGE SR 2025:KER:3946