Remanded

The Kerala State Co-Operative Coir Marketing Federation Limited v. the Kerala State Co-Operative Bank Limited

Kerala HC30 Nov 2016WP(C)/6584/2013

Case brief

AI extract

What is this about?

The High Court held that since the petitioner and respondent bank are under government control, liability discharge must be decided by the State. The petitioner was directed to dispose of the land, and coercive recovery actions were stayed for three months.

What did the court decide?

Direction to Third Respondent to facilitate discharge of liability within three months; stay on coercive steps.

The Kerala State Co-Operative Coir Marketing Federation… — Company and Corporate | Kerala HC (2016)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE

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WEDNESDAY, THE 30TH DAY OF NOVEMBER 2016/9TH AGRAHAYANA, 1938

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WP(C).No. 6584 of 2013 (W)

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PETITIONER(S):

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THE KERALA STATE CO-OPERATIVE COIR MARKETING FEDERATION LIMITED NO.679, ALAPPUZHA (COIRFED), REP. BY MANAGING DIRECTOR.

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BY ADV. SRI.A.N.RAJAN BABU

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RESPONDENT(S)/RESPONDENTS:

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1. THE KERALA STATE CO-OPERATIVE BANK LIMITED, COBANK TOWERS, PALAYAM, THIRUVANANTHAPURAM, PIN-695 033, REP. BY ITS MANAGING DIRECTOR,

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2. THE AUTHORISED OFFICER,

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KERALA STATE CO-OPREATIVE BANK LTD., THIRUVANANTHAPURAM,REGIONAL OFFICE, STATE CO-OP. BANKING BUILDING, OVER BRIDGE JUNCTION, THIRUVANANTHAPURAM-695 001.

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3. THE STATE OF KERALA, REP. BY THE SECRETARY, DEPARTMENT OF INDUSTRIES, GOVERNMENT SECRETARIAT,THIRUVANANTHAPURAM-695 001.

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R1 & R2 BY ADVS. SRI.K.RAVIKUMAR, SC

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SRI.GEORGE POONTHOTTAM, SC

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R3 BY GOVERNMENT PLEADER SMT.POOJA SURENDRAN

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 30-11-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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msv/

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WP(C).No. 6584 of 2013 (W)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXT.P1:-	TRUE COPY OF THE STATEMENT OF TRANSACTION OF COIRFED IN RESPECT OF THE SAID CASH CREDIT FACILITY THROUGH ITS CASH CREDIT ACCOUNT NO 466 OF IST RESPONDENT BANK
EXT.P2:-	TRUE COPY OF THE LETTER NO. BD/OPRD/715/COIRFED/CC/ 2624/2000-01 DTD 28/8/2000 ISSUED BY THE MANAGING DIRECTOR OF IST RESPONDENT BANK
EXT.P3:-	TRUE COPY OF THE AGREEMENT OF LOAN AND HYPOTHECATION EXECUTED BETWEEN THE PETITIONER AND IST RESPONDENT DTD 28/8/2000
EXT.P4:-	TRUE COPY OF THE LETTER OF THE MANAGING DIRECTOR OF THE PETITIONER TO THE MANAGING DIRECTOR OF THE IST RESPONDENT CONFIRMING AGREEMENT,
EXT.P5:-	TRUE COPY OF THE ORDER NO RFD/S.S.D/49/I/6888/2003-04 DTD 30/3/2004 ISSUED BY THE IST RESPONDENT BANK
EXT.P6:-	TRUE COPY OF THE DEED OF GUARANTEE DTD 26/11/2004 EXECUTED BY THE KERALA IN FAVOUR OF NABARD
EXT.P7:-	TRUE COPY OF THE DEMAND NOTICE NO TRO/SA/COIRFED/1548/ 1697/2008-09 DTD 28/1/2009 ISSUED BY THE RESPONDENT BANK
EXT.P8:-	TRUE COPY OF THE REPRESENTATION DTD 18/3/2009 IN REPLY TO SETTLE THE DUES TO IST RESPONDENT
EXT.P9:-	TRUE COPY OF THE MINUTES OF MEETING WITH HONOURABLE MINSTERS AND BANK OFFICIALS ON 21/8/2009
EXT.P10:-	TRUE COPY OF ORDER NO CS 2/6034/09 DTD 19/1/2010 SANCTIONED TO SELL 2 ACRES 80 CENTS OF LAND,
EXT.P11:-	TRUE COPY OF MINUTES OF THE MEETING OF HON'BLE MINISTERS FOR COIR AND FINANCE, VICE CNAIRMAN OF PLANNING BOARD, OFFICIALS OF PETITIONER AND IST RESPONDENT ON 8/9/2009
EXT.P12:-	TRUE COPY OF THE ORDER GO(MS)NO 55/2010/ID DTD 12/3/2010 ISSUED BY THE INDUSTRIES (E)DEPARTMENT,
EXT.P13:- Msv/	TRUE COPY OF MINUTES OF THE MEETING ON 23/7/2012 IN THE CHAMBER OF HONOURABLE CHIEF MINISTER.

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-2-

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-2-

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WP(C).No. 6584 of 2013 (W)

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EXT.P14:TRUE COPY OF THE NOTICE NO ILD/65/COIRFED/4233/2011-12 DTD 19/1/2012 ISSUED BY THE RESPONDENT BANK

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EXT.P15:TRUE COPY OF LETTER NO CF/MD/2012-13 DTD 11/1/2012 ISSUED BY THE PETITIONER TO THE RESPONDENT BANK.

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EXT.P16:TRUE COPY OF THE NOTICE NO TRO/SA/COIRFED/1548/2011-12 DTD 18/2/2012 ISSUED BY THE RESPONDENT BANK

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EXT.P17:TRUE COPY OF POSSESSION NOTICE SENT BY THE RESPONDENT BANK TO THE PETITIONER.

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EXT.P18:TRUE COPY OF NOTICE NO TRO/SA/COIRFED/1548 DTD 18/2/2012 ISSUED BY THE RESPONDENT BANK TO THE PETITIONER.

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EXT.P19:TRUE COPY OF THE LETTER NO. TRO/SA/H.O.BR/1514/983/ 2012-13 DTD 25/1/2013 ISSUED BY THE RESPONDENT BANK

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EXT.P20:TRUE COPY OF LETTER NO TRO/SA/H.O.BR/1514/981/2012-13 DTD 25/1/2013 ISSUED BY THE RESPONDENT BANK

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EXT.P21:TRUE COPY OF THE LETTER NO TRO/SA/H.O.BR/1514 DTD 25/1/2013 ISSUED BY THE RESPONDENT BANK TO THE PETITIONER.

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EXT.P22:TRUE COPY OF THE LETTER NO TRO/SA/H.O.BR/1514 DTD 25/1/2013 ISSUED BY THE RESPONDENT BANK TO THE PETITIONER.

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EXT.P23:TRUE COPY OF THE NOTICE DTD 6/2/2013 TO THE PETITIONER EXT.P24:TRUE COPY OF THE NOTICE DTD 6/2/2013 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.

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EXT.P25:TRUE COPY OF THE NOTICE OF SALE DTD 6/2/2013 IN RESPECT OF 89.92 CENTWS OF LAND IN MULLAKKAL VILLAGE,

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EXT.P26:TRUE COPY OF THE SALE NOTICE PUBLISHED IN RESPECT OF 89.92 CENTS OF LAND IN SY NO 662 ON 6/2/2013

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EXT.P27:TRUE COPY OF PROPERTY SALE NOTIFICATION DTD 6/2/2013 BY THE 2ND RESPONDENT.

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RESPONDENT(S)' EXHIBITS

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EXT.R3(a): TRUE COPY OF THE G.O.(MS) NO.30.2013/INDUSTRIES DTD.27.3.2013. Msv/

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WP(C).No. 6584 of 2013 (W)

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EXT.R3(b): TRUE COPY OF THE RECEIPT ISSUED BY THE FIRST RESPONDENT BANK. EXT.R3(c): TRUE COPY OF THE RECEIPT ISSUED BY THE FIRST RESPONDENT BANK. //TRUE COPY//

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P.S.TO JUDGE

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msv/

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A.MUHAMED MUSTAQUE, J.

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=========================

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W.P.(C).No.6584/2013

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Dated this the 30^th day of November, 2016

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J U D G M E N T

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The petitioner, the Kerala State Co-operative Coir Marketing

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Federation has approached this court challenging recovery

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proceedings initiated by the Kerala State Co-operative Bank Ltd. to

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recover dues in respect of a bank loan advanced to them. The

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federation have a case that they were attempting to dispose of an

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unused land by way of transfer to Government and on receipt of the

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amount, they would discharge the entire liability to the bank. They

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refer to the decision taken at minister level. I am of the view that

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since the petitioner as well as the respondent/bank are very much

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under the control of the Government, the third respondent shall take

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a decision in this matter in what manner the liability of the bank can

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be discharged by the petitioner. Therefore, there shall be a direction

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W.P.(C).No.6584/2013

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-:2:-

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to the third respondent to take appropriate decision to facilitate

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discharge of liability by the petitioner within a period of three

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months. Till such a decision is taken, no coercive steps shall be taken

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against the petitioner.

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The writ petition is disposed of as above. No costs.

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Sd/A.MUHAMED MUSTAQUE, JUDGE

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The Kerala State Co-Operative Coir Marketing Federation Limited v. the Kerala State Co-Operative Bank Limited

Case brief

What is this about?

What did the court decide?

The Kerala State Co-Operative Coir Marketing Federation Limited v. the Kerala State Co-Operative Bank Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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