Disposed

John v. the Assistant Registrar Arbitration and Execution Office

Kerala HC17 Aug 2016WP(C)/8372/2016

Case brief

AI extract

What is this about?

Petitioners, senior citizens, defaulted on loans from the 3rd respondent cooperative bank. The bank executed an arbitration award via demand notices for property sale. The court directed the bank to provide a statement and allowed petitioners to pay outstanding amounts in 12 equated monthly installments, with the bank retaining the right to enforce arbitration proceedings upon default.

What did the court decide?

Direction to pay outstanding loan amount in 12 equated monthly installments; bank to provide account statement within two weeks; liberty to execute award on subsequent default.

John Vs the Assistant Registrar Arbitration… — Contract and Commercial Disputes | 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 SHAJI P.CHALY

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WEDNESDAY, THE 17TH DAY OF AUGUST 2016/26TH SRAVANA, 1938

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WP(C).No. 8372 of 2016 (V)

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PETITIONER(S):

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1. JOHN, AGED 77 YEARS,S/O. MATHAI, KANNITTUMALAYIL HOUSE,PIRAVOM P.O., ERNAKULAM DISTRICT.

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2. MARIAKUTTY JOHN, AGED 72 YEARS,W/O.JOHN, KANNITTUMALAYIL HOUSE,PIRAVOM P.O., ERNAKULAM DISTRICT.

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BY ADV. SRI.S.DILEEP (KALLAR)

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RESPONDENT(S):

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1. THE ASSISTANT REGISTRAR ARBITRATION AND EXECUTION OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES MUVATTUPUAHA,PIN:686673.

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2. THE MANAGER,MULAKULAM,SERVICE CO OPERATIVE BANK LTD., NO.1097,MULAKKULAM NORTH P.O., PIRAVOM.686664.

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3. MULAKULAM,SERVICE CO OPERATIVE BANK LTD. REPRESENTED BY ITS SECRETARY,NO.1097, MULAKKULAM NORTH P.O.,PIRAVOM-686664.

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R3 BY ADV. SRI.GEORGE SEBASTIAN R1 BY SR.GOVERNMENT PLEADER SM.C.S.SHEEJA

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 17-08-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No. 8372 of 2016 (V)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXT.P1:THE TRUE COPY OF THE DEMAND NOTICE NO.1208/15 DATED 12/02/2016 ISSUED TO 1ST PETITIONER.

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EXT.P2:THE DEMAND NOTICE NO.1206/15 DATED 12/02/2016 ISSUED TO 2ND PETITIONER.

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EXT.P3:THE TRUE COPY OF THE APPLICATION SUBMITTED BY THE PETITIONERS BEFORE THE 1ST AND 2ND RESPONDENT DATED 25/02/2016.

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RESPONDENT(S)' EXHIBITS: NIL

//TRUE COPY//

P.A. TO JUDGE

dlk

SHAJI P. CHALY, J.

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W.P.(C). No.8372 of 2016

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----------------------------------------------Dated this the 17^th day of August, 2016

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JUDGMENT

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Petitioners have availed a loan of Rs.3,00,000/- each

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from the 3^rd respondent society on mortgaging properties belonging to them. Admittedly, repayment of the loans were defaulted by the petitioners. Consequent to which, bank initiated action and secured arbitration award for amounts of Rs.4,16,455/-and Rs.4,24,084/- with interest. In order to execute the award, coercive proceedings by selling the property was initiated, evident from Exts.P1 and P2, demands respectively issued to the petitioners. According to the petitioners, petitioners have submitted Ext.P3 representation before the 1^st and 2^nd respondents, however, no action pursuant to the same was taken by the said respondents. It is in this background, this writ petition is filed.

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Third respondent has filed a counter affidavit refuting the allegations and statements made in the writ petition. It is contended therein that, since the petitioners have defaulted repayment of the loan, they have secured arbitration award and to execute the award, action pursuant to Exts.P1 and P2

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W.P.(C). No.8372 of 2016

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was initiated by the 3^rd respondent.

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Heard learned counsel for the petitioners, learned Senior Government Pleader, learned counsel appearing for respondents 2 and 3 and perused the pleadings and documents on record.

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Taking into account the respective submissions made across the Bar and reckoning the facts and circumstances involved in the case, I think it is only appropriate that, an opportunity can be provided to the petitioners taking into account the fact that they are senior citizens aged more than 70 years to pay off the amounts outstanding in reasonable equated monthly installments.

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Therefore, there will be direction to the petitioners to pay off the outstanding amounts in accordance with the arbitration awards in 12 equated monthly installments starting from 5.9.2016 and on the same day of the succeeding months. Needless to say, if any of the installments are defaulted by the petitioners, bank will be at liberty to proceed

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W.P.(C). No.8372 of 2016

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in terms of the arbitration awards and Ext.P1 demand by selling the properties mortgaged. In order to enable the petitioners to pay the amount, bank shall provide a statement of account to the petitioners within two weeks from today.

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Writ petition is disposed of accordingly.

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Sd/-

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smv 17.08.2016

John v. the Assistant Registrar Arbitration and Execution Office

Case brief

What is this about?

What did the court decide?

John v. the Assistant Registrar Arbitration and Execution Office

Case brief

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What did the court decide?

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