Thrissur Service Co-Operative Bank ... vs State Of Kerala
2026 Latest Caselaw 1094 Ker

Kerala High Court

Thrissur Service Co-Operative Bank ... vs State Of Kerala on 3 February, 2026

WP(C) NO. 31220 OF 2024 &
WP(C) NO. 24193 OF 2024        1         2026:KER:8887

          IN THE HIGH COURT OF KERALA AT ERNAKULAM

                            PRESENT

        THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.

  TUESDAY, THE 3RD DAY OF FEBRUARY 2026 / 14TH MAGHA, 1947

                  WP(C) NO. 31220 OF 2024

PETITIONER/S:

          VARGHESE THARAKAN
          AGED 50 YEARS
          S/O.OUSEPH, THARAKAN HOUSE, AMALA NAGAR DESOM,
          AMALA NAGAR P.O, PUZHAKKAL VILLAGE, THRISSUR
          TALUK, THRISSUR DISTRICT,, PIN - 680555


          BY ADVS.
          SRI.N.L.BITTO
          SMT.MITHUL T ANTO


RESPONDENT/S:

    1     STATE OF KERALA
          REP. BY SECRETARY TO THE GOVERNMENT, CO-
          OPERATIVE DEPARTMENT, GOVERNMENT SECRETARIAT,
          THIRUVANANTHAPURAM,, PIN - 695001

    2     ASSISTANT REGISTRAR (GENERAL) FOR CO-OPERATIVE
          SOCIETIES,
          AYYANTHOLE, THRISSUR, THRISSUR DISTRICT,
          PIN - 680003

    3     THRISSUR SERVICE CO-OPERATIVE BANK LTD.,
          THRISSUR
          REPRESENTED BY SECRETARY, BINU, S/O.VISWANATHAN,
          NELLIPARAMBIL HOUSE, ALAPPAT DESOM, ALAPPAT
          VILLAGE, ALAPPAT P.O, THRISSUR DISTRICT,
          PIN - 680641
 WP(C) NO. 31220 OF 2024 &
WP(C) NO. 24193 OF 2024         2      2026:KER:8887



          BY ADVS.
          SRI.A.D.RAVINDRA PRASAD
          SRI.ALEX VARGHESE
          SHRI.A.D.CHANDRA BOSE

          SMT.DEVI SHRI R, GP

     THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 03.02.2026, ALONG WITH WP(C).24193/2024, THE COURT ON
THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 31220 OF 2024 &
WP(C) NO. 24193 OF 2024        3         2026:KER:8887


          IN THE HIGH COURT OF KERALA AT ERNAKULAM

                            PRESENT

        THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.

  TUESDAY, THE 3RD DAY OF FEBRUARY 2026 / 14TH MAGHA, 1947

                  WP(C) NO. 24193 OF 2024

PETITIONER/S:

          THRISSUR SERVICE CO-OPERATIVE BANK LTD. NO.1097
          PATTURAIKKAL
          THIRUVAMBADY P.O., THRISSUR, REP. BY THE
          SECRETARY, PIN - 680022


          BY ADVS.
          SRI.A.D.RAVINDRA PRASAD
          SRI.ALEX VARGHESE
          SHRI.A.D.CHANDRA BOSE



RESPONDENT/S:

    1     STATE OF KERALA
          REP. BY SECRETARY TO GOVERNMENT CO-OPERATIVE
          DEPARTMENT ,GOVT. SECRETARIAT,
          THIRUVANANTHAPURAM, PIN - 695001

    2     THE ASSISTENT REGISTRAR (GENERAL) FOR CO-
          OPERATIVE SOCIETIES,
          ASSISTENT REGISTRAR (GENERAL) OFFICE AYYANTHOLE,
          THRISSUR, PIN - 680003

    3     VARGHESE THARAKAN
          S/O. OUSEPH, THARAKAN HOUSE AMALA NAGAR DESOM,
          PUZHAKKAL VILLAGE, THRISSUR, PIN - 680555
 WP(C) NO. 31220 OF 2024 &
WP(C) NO. 24193 OF 2024      4         2026:KER:8887


          BY ADV SRI.N.L.BITTO
          SMT DEVI SHRI R, GP

     THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 03.02.2026, ALONG WITH WP(C).31220/2024, THE COURT ON
THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 31220 OF 2024 &
WP(C) NO. 24193 OF 2024            5            2026:KER:8887

                            JUDGMENT

[WP(C) Nos.31220/2024, 24193/2024]

W.P.(C) No.24193 of 2024 is filed by a Co-operative bank, which

had initiated proceedings against the third respondent for recovery

of the dues after the said respondent defaulted on the four business

loans availed from the petitioner bank. The bank instituted

Arbitration proceedings as A.R.C No.2275/2018, A.R.C No.2299/2018,

A.R.C. No.2301/2018 and A.R.C.No.2300/2018 before the Assistant

Registrar (General) of Co-operative Societies, Thrissur. It is

submitted by the petitioner that the loan availed by Joshi, which is

the subject matter of A.R.C.No.2300/2018, was subsequently closed

on 29.04.2022.

2. It is seen that in the A.R.C. Proceedings, the respondent did

not contest the claim, but only wanted six months for paying the

amount due. Accordingly, awards were passed as Exts.P1 to P3.

Thereafter, Execution Petitions were filed for the recovery of the WP(C) NO. 31220 OF 2024 & WP(C) NO. 24193 OF 2024 6 2026:KER:8887

said amount. Petitioner submits that the third respondent was also

granted an opportunity to settle the loan under the OTS scheme,

which they did not avail.

3. Against the three awards, the third respondent filed

appeals as A.P. No.246/2023, A.P.No.247/2023 and A.P.No.248/2023

before the Kerala Co-operative Tribunal.

4. The Tribunal passed Ext.P4 common judgment in appeal,

which interfered with the order of the Arbitrator by reducing the

rate of interest to 10% from 15%. The bank challenges the common

award in W.P.(C) No.24193 of 2024. The third respondent filed

W.P.(C) No.31220 of 2024, challenging the very same award.

5. The learned counsel appearing for the bank submits that

the interest should not have been slashed to 10% from 15%, which

causes a huge loss to them. Learned counsel for the petitioner

submits that the Tribunal went wrong in finding that the

respondent had conceded the claim before the Arbitrator.

6. However, on a reading of the common judgment, it is clear WP(C) NO. 31220 OF 2024 & WP(C) NO. 24193 OF 2024 7 2026:KER:8887

that the Tribunal had called for the documents from the Arbitrator

and found that the defaulter had conceded the plaint claim and a

statement was given to that effect in writing. Under such

circumstances, I do not find any illegality in the procedure adopted

by the Tribunal. The petitioner, in fact, stands benefited by the

reduction of interest from 15% to 10%.

7. After hearing the learned counsel appearing for the

petitioners in both cases and on going through and perusing the

records, I hold that the Tribunal should not have reduced the

interest from 15% to 10%. However, in the interest of justice, the

common judgment is modified by directing that the outstanding

amount be paid with an interest of 12%.

8. The writ petitions are accordingly disposed of, directing

the petitioner in W.P.(C) No.31220 of 2024 to deposit 20% of the total

amount due, which is calculated at Rs.1,54,03,537/- as the principal

amount and an interest of Rs.1,05,61,197/- as on 02.02.2026 and

Rs.1,60,425/- as other charges totalling Rs.2,61,25,159/-. WP(C) NO. 31220 OF 2024 & WP(C) NO. 24193 OF 2024 8 2026:KER:8887

9. In view of the above, the petitioner in W.P.C 31220/2024 is

granted an opportunity to repay the outstanding amount on the

following conditions:

(i) The petitioner has to pay 20% of the total amount on or

before 05.03.2026.

(ii) The balance outstanding, along with accrued interest,

costs, and charges, if any, shall be paid in 12 equal monthly

instalments starting from 5th April, 2026, and subsequent

instalments shall be paid on or before the 5th day of every

succeeding month.

(iii) In the event of default of any one instalment, the

respondent Bank shall be entitled to proceed in

accordance with the law;

(iv) All coercive proceedings shall be kept in abeyance to

enable the petitioner to repay the entire amount directed

above.

WP(C) NO. 31220 OF 2024 & WP(C) NO. 24193 OF 2024 9 2026:KER:8887

(V) This judgment will not prevent the petitioner from

approaching the bank for any reduction/assistance or availing

the OTS, subject to the Regulations of the Bank.

The writ petitions are disposed of as above.

SD/-

MOHAMMED NIAS C.P. JUDGE

JJ WP(C) NO. 31220 OF 2024 & WP(C) NO. 24193 OF 2024 10 2026:KER:8887

APPENDIX OF WP(C) NO. 31220 OF 2024

PETITIONER EXHIBITS

Exhibit-P1 A TRUE COPY OF THE AWARD IN ARC.2275 OF 2018 PASSED BY THE 2ND RESPONDENT DATED 28/9/2018 Exhibit-P2 A TRUE COPY OF THE AWARD IN ARC.2299 OF 2018 PASSED BY THE 2ND RESPONDENT DATED 28/9/2018 Exhibit-P3 A TRUE COPY OF THE AWARD IN ARC.2301 OF 2018 PASSED BY THE 2ND RESPONDENT DATED 28/9/2018 Exhibit-P4 A TRUE COPY OF THE APPEAL NO.246 OF 2023 PREFERRED BY THE PETITIONER DATED 10/07/2023 Exhibit-P5 A TRUE COPY OF THE APPEAL NO.247 OF 2023 PREFERRED BY THE PETITIONER DATED 10/07/2023 Exhibit-P6 A TRUE COPY OF THE APPEAL NO.248 OF 2023 PREFERRED BY THE PETITIONER DATED 10/07/2023 Exhibit-P7 A TRUE COPY OF THE COMMON JUDGEMENT IN APPEAL NOS.246 OF 2023, 247 OF 2023 AND 248 OF 2023 OF THE KERALA CO-OPERATIVE TRIBUNAL DATED 27/03/2024 RESPONDENT EXHIBITS

Exhibit R3(a) The true copy of the common judgment of the Honble Court in W.P.(C) No.31691/2023, W.P.(C) No.31700/2023 and W.P.(C) No.31719/2023 dated 17-11-

WP(C) NO. 31220 OF 2024 & WP(C) NO. 24193 OF 2024 11 2026:KER:8887

APPENDIX OF WP(C) NO. 24193 OF 2024

PETITIONER EXHIBITS

Exhibit P1 TRUE COPY OF THE AWARD IN ARC NO.

2275/2018 PERTAINING TO 3RD RESPONDENT VARGHESE THARAKAN AS PRINCIPAL DEBTOR DATED 28.09.2018 Exhibit P2 TRUE COPY OF THE AWARD IN ARC NO.

2299/2018 PERTAINING TO DANA CHANDRAN AS PRINCIPAL DEBTOR ADTED 28.09.2018 Exhibit P3 TRUE COPY OF THE AWARD IN ARC NO.

                      2301/2018   PERTAINING   TO   VISAKH   AS
                      PRINCIPAL DEBTOR DATED 28.09.2018
Exhibit P4            TRUE COPY OF THE COMMON ORDER OF THE
                      KERALA       CO-OPERATIVE       TRIBUNAL,
                      THIRUVANANTHAPURAM    IN    APPEAL   NOS.

246/2023, 247/2023 AND 248/2023 DATED 27-03-2024