Kerala High Court
Sibi Raj vs State Of Kerala on 16 October, 2025
2025:KER:77031
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
THURSDAY, THE 16TH DAY OF OCTOBER 2025 / 24TH ASWINA, 1947
WP(C) NO. 18851 OF 2025
PETITIONER:
SIBI RAJ
AGED 44 YEARS, S/O.BABU,
SINI RAJ BHAVAN, PANNIVIZHA MURI,
ANANDAPPALLY P.O., PATHANAMTHITTA, PIN - 691 525.
BY ADVS.
SRI.B.MOHANLAL
SMT.P.S.PREETHA
SRI.ASWIN V. NAIR
SRI.KARTHIK J SEKHAR
SRI.ABIJITH M.
SMT. AVANI NAIR
SMT.JAYAPRABHA ARJUN
SMT.PRAVEENA T.
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY THE PRINCIPAL SECRETARY TO
GOVERNMENT, CO-OPERATIVE DEPARTMENT, SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695 001.
2 THE REGISTRAR OF CO-OPERATIVE SOCIETIES
JAWAHAR SAHAKARANA BHAVAN, JAGATHI, THYCAUD P.O,
THIRUVANANTHAPURAM, PIN - 695 001.
3 THE JOINT REGISTRAR (GENERAL) OF CO-OPERATIVE
SOCIETIES
IIIRD FLOOR, MINI CIVIL STATION, KOZHENCHERY,
PATHANAMTHITTA, PIN - 689 641.
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WP(C) NO. 18851 OF 2025
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4 THE ASSISTANT REGISTRAR (GENERAL) OF CO-OPERATIVE
SOCIETIES
ADOOR, PATHANAMTHITTA DISTRICT, PIN - 691 523.
5 THE SPECIAL SALE OFFICER
PARACODE SCB GROUP, OFFICE OF THE ASSISTANT
REGISTRAR (GENERAL) OF CO-OPERATIVE SOCIETIES,
ADOOR, PATHANAMTHITTA, PIN - 691 523.
6 THE PANNIVIZHA SERVICE CO-OPERATIVE BANK
LTD.NO.891
PANNIVIZHA, ADOOR, PATHANAMTHITTA,
REPRESENTED BY ITS SECRETARY, PIN - 691 523.
BY ADVS.
SRI.K.SHAJ
SMT.BEENA N.KARTHA
SRI.ARUN CHAND
SRI.BHARAT VIJAY P.
SMT.MINU VITTORRIA PAULSON
SMT.SAUMYA.P.S
SMT.GOPIKA GOPAL
SMT.ARCHANA P.P.
SRI.REN SHIBU
SMT.SHEHROON PATEL A.K.
SRI.KEVIN JAMES
SRI V.K. SUNIL, GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 16.10.2025, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) NO. 18851 OF 2025
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JUDGMENT
The petitioner availed a loan from the respondent
bank. On default being committed, proceedings were
initiated against the petitioner under the provisions of the
Kerala State Co-operative Agricultural and Rural
Development Banks Act, 1984, and the property of the
petitioner was sold in an auction. The property was
purchased by the bank.
2. The learned counsel appearing for the petitioner
submits that, as per Ext.R6(G), the petitioner has been
informed that the bank is willing to grant a One Time
Settlement by reducing a sum of Rs.1,25,823/-, making the
liability of the petitioner, as on 27-03-2025, Rs.10,33,685/-.
It is submitted that the bank has failed to grant a
reasonable One Time Settlement to the petitioner, and the
amount of reduction given by the bank as per Ext.R6(G) is
very meager.
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WP(C) NO. 18851 OF 2025
3. The learned counsel appearing for the respondent
bank submits that, after availing the loan in the year 2019,
the petitioner remitted only a sum of Rs.30,000/- (Rupees
Thirty Thousand Only) towards the loan liability. It is
submitted that the grant of One Time Settlement is at the
discretion of the respondent bank, and the petitioner
cannot insist that a particular concession to the
satisfaction of the petitioner must be extended by the bank.
It is submitted that the bank has given the maximum
possible concession taking into account the circumstances
of the case. It is submitted that the only indulgence that
can be shown to the petitioner is that the petitioner can be
permitted to pay off the amount of Rs.10,33,685/- in some
instalments, provided the petitioner pays at least 50% of
that amount within one month from today. It is submitted
that the petitioner will also have to pay additional interest,
as the amount of Rs.10,33,685/ is the amount payable by
the petitioner as on 27-03-2025.
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WP(C) NO. 18851 OF 2025
4. The learned counsel appearing for the petitioner
submits that the petitioner will remit a sum of
Rs.2,00,000/- (Rupees Two Lakhs Only) within one month
from today, and the balance amount will be remitted in six
monthly instalments.
5. Having heard the learned counsel appearing for
the petitioner and the learned counsel appearing for the
respondent bank, I am convinced that the learned counsel
for the respondent bank is right in contending that the
petitioner cannot insist that a particular amount of waiver
must be granted by the respondent bank. It is seen from
Ext.R6(G) that the bank has already waived a sum of
Rs.1,25,823/-, and it is not within the jurisdiction of this
Court to direct the bank to grant further waiver to the
petitioner, especially when there is no One Time
Settlement scheme presently in force. However, taking
into consideration the submission of the learned counsel
for the respondent bank that the petitioner can be
permitted to clear the liability in some instalments, I am of
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WP(C) NO. 18851 OF 2025
the view that the writ petition can be disposed of,
permitting the petitioner to clear the liability of
Rs.10,33,685/- (as on 27-03-2025) in some instalments.
6. Accordingly, this writ petition will stand disposed
of, permitting the petitioner to clear the liability of
Rs.10,33,685/- (as on 27-03-2025) along with any accrued
interest, cost and bank charges from the petitioner in the
following manner:
i. The petitioner shall pay an amount of
Rs.3,00,000/- (Rupees Three Lakhs only) towards
the loan liability on or before 15-11-2025. The
balance amount shall be repaid in six (06)
equated monthly instalments, along with any
accrued interest, cost and charges. The first
instalment shall be paid on or before 16-12-2025;
ii. The subsequent instalments shall be paid on or
before the 16th day of every succeeding month;
iii. If the petitioner fails to remit any of the
instalments as directed above, it will be open to
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the respondent bank to continue with the
proceedings initiated against the petitioner.
iv. In order to enable the petitioner to repay the
entire amounts, all further proceedings shall be
kept in abeyance.
v. The property shall be reconveyed to the petitioner
if the petitioner clears the liability as above.
Costs of such recoveyance (if any) shall be borne
by the petitioner.
The writ petition is disposed of as above.
Sd/-
GOPINATH P.
JUDGE
ats
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WP(C) NO. 18851 OF 2025
APPENDIX OF WP(C) 18851/2025
PETITIONER'S EXHIBITS
Exhibit P1 THE TRUE COPY OF THE NOTICE NO.EA.315/2024
DATED 13/1/2025 ISSUED BY THE 5TH RESPONDENT
TO THE PETITIONER.
Exhibit P2 THE TRUE COPY OF THE SALE AGREEMENT DATED
24/2/2025 EXECUTED BETWEEN THE PETITIONER
AND SRI.PRADEEP KUMAR.
Exhibit P3 THE TRUE COPY OF THE CIRCULAR NO.1/2025
DATED 3/1/2025 ISSUED BY THE 2ND RESPONDENT.
Exhibit P4 THE TRUE COPY OF THE ORDER NO.CRP(2)525/2025
DATED 12/3/2025 ISSUED BY THE 3RD
RESPONDENT.
Exhibit P5 THE TRUE COPY OF THE APPLICATION DATED
30/4/2025 SUBMITTED BY THE PETITIONER BEFORE
THE 3RD RESPONDENT AND ITS POSTAL RECEIPT.
Exhibit P6 THE TRUE COPY OF THE ORDER
NO.JRGPTA/876/2025-AEL DATED 30/4/2025
ISSUED BY THE 3RD RESPONDENT.
Exhibit P7 THE TRUE COPY OF THE ORDER CRP(2)525/2025
DATED 26/5/2025 ISSUED BY THE 3RD RESPONDENT
TO THE 6TH RESPONDENT.
Exhibit P8 THE TRUE COPY OF THE NOTICE NO.SSO 90/2025
DATED 13/6/2025 ISSUED BY THE 6TH RESPONDENT
TO THE PETITIONER.
RESPONDENT'S EXHIBITS
EXHIBIT R6(A) THE TRUE COPY OF THE DEMAND NOTICE NO. EA
315/24 DATED 04/06/2024 ISSUED TO THE
PETITIONER.
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WP(C) NO. 18851 OF 2025
EXHIBIT R6(B) THE TRUE COPY OF THE DEMAND NOTICE NO. EA
315/24 DATED 27/09/2024 ISSUED TO
PETITIONER'S FATHER BABU M. K.
EXHIBIT R6(C) THE TRUE COPY OF THE LETTER DATED 27/09/2024
ISSUED BY THE 5TH RESPONDENT TO THE
PETITIONER
EXHIBIT R6(D) THE TRUE COPY OF THE NOTICE DATED 17/10/2024
ISSUED BY THE 5TH RESPONDENT TO THE
PETITIONER.
EXHIBIT R6(E) A TRUE COPY OF THE NEWSPAPER NOTICE
PUBLISHED IN MALAYALAM MANORAMA DATED
01/12/2024.
EXHIBIT R6(F) THE TRUE COPY OF THE LETTER DATED 14/03/2025
ISSUED BY THE 4TH RESPONDENT TO THE 3RD
RESPONDENT
EXHIBIT R6(G) THE TRUE COPY OF THE LETTER DATED 27/03/2025
SUBMITTED BY THE SECRETARY, 6TH RESPONDENT
BANK TO THE 3RD RESPONDENT.
