Kerala High Court
Laila vs State Of Kerala on 4 November, 2025
2025:KER:83498
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
TUESDAY, THE 4TH DAY OF NOVEMBER 2025 / 13TH KARTHIKA,
1947
WP(C) NO. 24065 OF 2025
PETITIONERS:
1 LAILA,
AGED 54 YEARS, W/O T.K.MUHAMMED SAGEER,
THAIVALAPPIL, SANTHIPURAM P.O., ALA P.O.,
AMANDOOR DESOM, ALA VILLAGE,
KODUNGALLUR TALUK, THRISSUR DISTRICT,
PIN - 680 668.
2 T.K.MUHAMMED SAGEER
AGED 65 YEARS, S/O LATE KHADER,
THAIVALAPPIL, SANTHIPURAM P.O.,
AMANDOOR DESOM, AALA VILLAGE,
KODUNGALLUR TALUK, THRISSUR DISTRICT,
PIN - 680 668.
BY ADVS.
SHRI.VARGHESE C.KURIAKOSE
SMT.AMRITHA.J
SHRI.KURUVILLA MATHEW
SHRI.VIPIN C. VARGHESE
SMT.MARIYA MATHEW
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY SECRETARY,
DEPARTMENT OF CO-OPERATION, SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695 001.
2 THE REGISTRAR
OF CO-OP. SOCIETIES, O/O THE REGISTRAR,
THIRUVANANTHAPURAM, PIN - 695 001.
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WP(C) NO. 24065 OF 2025
2
3 THE ASSISTANT REGISTRAR (GENERAL)
CO-OPERATIVE SOCIETIES, KODUNGALLUR TALUK,
THRISSUR DISTRICT, PIN - 680 664.
4 THE ARBITRATION & EXECUTION INSPECTOR
O/O THE ASSISTANT REGISTRAR OF CO-OPERATIVE
SOCIETIES (GENERAL) KODUNGALLUR,
THRISSUR DISTRICT, PIN - 680 664.
5 AALA SERVICE CO-OPERATIVE BANK, R-321
THEKKOOT KARAYIL, PANANGADU VILLAGE,
KODUNGALLUR TALUK, REP BY ITS SECRETARY
DEEPA.N.N., W/O JYOTHIBAS, PIN - 680 664.
BY ADVS.
SRI.K.C.ELDHO (FOR R5)
SRI.S.BIJILAL
SMT.ALMAJITHA FATHIMA
SMT.HIMA JOSEPH
SRI. V.K SUNIL (G.P)
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY
HEARD ON 04.11.2025, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) NO. 24065 OF 2025
3
JUDGMENT
Petitioners have approached this Court challenging
Ext.P1 award in proceedings initiated by the
5th respondent bank under Section 69 of the Kerala
Co-operative Societies Act, 1969, to recover the
amounts due under a loan availed by the petitioners
from the 5th respondent bank.
2. The learned counsel appearing for the
petitioners would submit that the petitioners did not
receive summons in the arbitration case, and therefore
they did not enter appearance before the arbitrator. It
is submitted that the petitioners have valid contentions
to be taken on the merits of the claim raised by the
5th respondent bank and they may be given one
opportunity to contest the matter on merits before the
arbitrator.
3. The learned counsel appearing for the
5th respondent bank refers to the counter affidavit filed
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WP(C) NO. 24065 OF 2025
in this Court and submits that the summons was served
on the 1st petitioner. It is submitted that after
receiving summons, the petitioners chose to remain
ex parte, and when recovery proceedings had been
initiated, the petitioners rushed to this Court raising
untenable contentions. It is submitted that having
failed to avail the opportunity of contesting the matter
before the arbitrator, the petitioners cannot be heard
to contend that they have several contentions on the
merits of the claim raised by the 5 th respondent bank.
It is submitted that, as on 03-11-2025, an amount of
Rs.47,10,910/- is due from the petitioners. It is
submitted that nearly three years have passed since
the award has been passed.
4. Having heard the learned counsel appearing
for the petitioners, the learned Government Pleader
and the learned counsel appearing for the
5th respondent bank, though I am not convinced that
the petitioners are justified in contending that they had
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WP(C) NO. 24065 OF 2025
not received summons in this case, I am of the opinion
that one opportunity can be granted to the petitioners
to contest the claim made by the 5 th respondent bank
on merits. However, considering the facts and
circumstances of the case, I am of the opinion that the
petitioners must be put on terms.
5. Accordingly, this writ petition is disposed of,
directing that if the petitioners were to remit a sum of
Rs.7,50,000/- (Rupees Seven Lakhs and Fifty Thousand
Only) towards the loan liability within a period of one
month from today, Ext.P1 ex parte award will stand set
aside and the claim raised by the 5 th respondent bank
will stand restored to the file of the arbitrator. The
petitioners shall appear before the arbitrator at
11.00 A.M on 05-12-2025, and if the petitioners
produce proof of having remitted the sum of
Rs.7,50,000/- (Rupees Seven Lakhs and Fifty
Thousand Only) towards the loan liability, the
arbitrator shall proceed to adjudicate the matter
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afresh. The arbitration proceedings shall be concluded
without delay and at any rate within a period of three
months from 05-12-2025. The petitioners shall
cooperate with the adjudication of the claim and shall
not seek unnecessary adjournments in the matter. If
the petitioners fail to remit the sum of Rs.7,50,000/-
within the specified time, Ext.P1 award dated
21-12-2023 will stand confirmed, and the respondent
bank will be entitled to enforce that award in
accordance with the law.
Writ petition ordered accordingly.
Sd/-
GOPINATH P.
JUDGE
ats
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WP(C) NO. 24065 OF 2025
APPENDIX OF WP(C) 24065/2025
PETITIONERS' EXHIBITS
Exhibit P1 PHOTOSTAT COPY OF THE AWARD IN ARC
NO.3440/2023 PASSED BY THE 4TH
RESPONDENT DATED 21.12.2023.
Exhibit P2 PHOTOSTAT COPY OF THE APPLICATION
SEEKING TO SET ASIDE THE EXPARTE AWARD
DATED 18.03.2025 IN ARC NO.3440/2023
BEFORE THE 4TH RESPONDENT.
Exhibit P3 PHOTOSTAT COPY OF THE APPLICATION
SEEKING TO DELAY CONDONATION PETITION
DATED 18.03.2025 FILED IN ARC
NO.3440/2023 BEFORE THE 4TH
RESPONDENT.
Exhibit P4 PHOTOSTAT COPY OF THE ACKNOWLEDGMENT
CARD SIGNED FROM THE OFFICE OF THE 4TH
RESPONDENT.
Exhibit P5 PHOTOSTAT COPY OF THE DEMAND NOTICE IN
E.P.NO.522/2025 ISSUED BY THE 4TH
RESPONDENT TO THE PETITIONERS ON
20.06.2025.
RESPONDENT'S EXHIBITS
Exhibit R5(a) A TRUE COPY OF THE SUMMONS ISSUED TO
THE PETITIONERS.
Exhibit R5(b) A TRUE COPY OF THE REVERSE SIDE OF THE
SUMMONS, REFLECTING THE SERVING OF THE
SUMMONS.
