Allowed

The Mulloor Rural Co-Operative Society Ltd. No.T 1499 v. the Thiruvananthapuram District Co-Operative Bank

Kerala HC20 Nov 2017WA/1782/2017

Case brief

AI extract

What is this about?

The court modified a writ allowance order, holding the direction to the bank to finalise proceedings erroneous. Relying on Syndicate Bank, it directed the Joint Registrar to dispose of pending arbitration cases involving the appellant within six months, noting the creditor bank's right to adjust debts from the appellant's account.

What did the court decide?

Directed the fourth respondent (Joint Registrar of Co-operative Societies) to dispose of 20 pending arbitration cases involving the appellant within six months.

The Mulloor Rural Co-Operative Society Ltd. No.T 1499 Vs the… — Arbitration | Kerala HC (2017)

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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 P.N.RAVINDRAN & THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN

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MONDAY, THE 20TH DAY OF NOVEMBER 2017/29TH KARTHIKA, 1939

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WA.No. 1782 of 2017 () IN WP(C).13920/2017

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AGAINST THE ORDER/JUDGMENT IN WP(C) 13920/2017 of HIGH COURT OF KERALA DATED 24-07-2017

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APPELLANT(S):

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THE MULLOOR RURAL CO-OPERATIVE SOCIETY LTD. NO.T 1499 NO.T 1499, MULLOOR PO, THIRUVANANTHAPURAM, REPRESENTED BY ITS SECRETARY

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BY ADVS.SRI.K.B.PRADEEP SMT.J.HARIPRIYA

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RESPONDENT(S):

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THE THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK THIRUVANANTHAPURAM, REPRESENTED BY ITS SECRETARY, THIRUVANANTHAPURAM, PIN-695 001.

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THE MANAGER

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THIRUVANANTHAPURAM DISTRICT CO-OPERATIVE BANK PARANIYAM BRANCH, THIRUVANANTHAPURAM-695 001.

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THE REGISTRAR OF CO-OPERATIVE SOCIETIES GOVERNMENT OF KERALA, THIRUVANANTHAPURAM-695 001.

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DISTRICT JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES THIRUVANANTHAPURAM, GOVERNMENT OF KERALA, THIRUVANANTHAPURAM-695 001.

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ASSISTANT REGISTRAR (GENERAL) OF CO-OPERATIVE SOCIETIES GOVERNMENT OF KERALA, THIRUVANANTHAPURAM-695 001.

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R3 TO R5 BY SR.G.P. SRI RENIL ANTO KANDAMKULATHY R1 AND R2 BY SRI.THOMAS ABRAHAM SC THIRUVANANTHAPURAM DIST. CO.

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THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 20-11-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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P.N. Ravindran & Devan Ramachandran, JJ.

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- - - - - - - - - - - - - - - - - - - - - -- - - W.A.No.1782 of 2017

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- - - - -- - - - - - - - - - - - - - - - - - - - - Dated this the 20^th November, 2017

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JUDGMENT

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P.N.Ravindran, J.

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This appeal is by the unsuccessful petitioner in W.P.(C) No.13920 of 2017. The appellant had filed W.P.(C) No.13920 of 2017 praying for a writ in the nature of mandamus commanding the Manager, Thiruvananthapuram District Co-operative Bank, Paraniyam Branch, joined as the second respondent, to honour the matured fixed deposit receipts referred to in Ext.P2 letter and to disburse the amounts due thereunder to the appellant. The appellant had also prayed for a writ in the nature of mandamus directing all branches of the Thiruvananthapuram Distrtict Co-operative Bank to honour cheques and bills issued by it provided there is sufficient balance in the account maintained by the appellant to honour such cheques and bills.

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The learned single Judge disposed of the writ petition with a direction to the Thiruvananthapuram District Co-operative Bank, the first respondent in the writ petition, to ensure that the proceedings initiated against the appellant bank are finalised within six weeks. The learned single Judge also directed that if ultimately the appellant is found entitled to get the fixed deposits released, it shall be done

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WA 1782/2017

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without further delay.

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When this appeal came up for consideration before us on 15.11.2017, learned standing counsel appearing for the Thiruvananthapuram District Co-operative Bank submitted that 20 arbitration cases filed by it against the appellant society are pending. In the light of the said submission, we passed the following order:

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“Learned standing counsel for Thiruvananthapuram District Co-operative Bank Ltd. To make available for perusal a copy each of the 20 arbitration cases filed by the Thiruvananthapuram District Co-operative Bank against the Mulloor Rural Co-operative Society Ltd. No.T.1499 on the next posting date.

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Call on 20.11.2017.”

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When the writ petition came up for consideration today, learned standing counsel handed over to us a copy each of the said arbitration cases. The total amount claimed by the bank in the said arbitration cases is Rs.4,51,14,186/-. All the arbitration cases are pending before the Joint Registrar (General), Thiruvananthapuram. Learned counsel for the appellant submits that the appellant has received notice from the Arbitrator only in six cases and that the appellant society is yet to get notice in the other 14 cases.

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It is settled law that the creditor bank has the liberty to adjust the amounts due to it from the money lying in deposit with it in the

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WA 1782/2017

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debtor's account and pay only the balance if any left with them to its debtors - vide Syndicate Bank v. Vijay Kumar (AIR 1992 SC 1066). Such being the situation, we are of the opinion that the appellant cannot complain about the Thiruvanathapuram District Co-operative Bank declining to permit it to operate the accounts maintained by it in the said bank. The learned single judge was, in our opinion, clearly in error in directing the first respondent bank to finalise the proceedings initiated against the appellant. The direction should have been one to the Arbitrator to finalise the proceedings at the earliest. The Arbitrator was also on the party array as the fourth respondent.

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In such circumstances, in modification of the judgment of the learned single Judge, we dispose of the appeal with a direction to the fourth respondent, the Joint Registrar of Co-operative Societies (General), Thiruvananthapuram before whom 20 Arbitration Cases, viz. Arbitration Case Nos.599, 600, 601, 602, 603, 2031, 2028, 2026, 2018, 2024, 2023, 2022, 2021, 2017, 2019, 2020, 2025, 2027, 2029 and 2030 of 2015 are pending, to dispose of the arbitration cases in a time bound manner and at any rate, within six months from the date of receipt of a copy of this judgment. The appellant shall, if it has not already entered appearance in all the cases, enter appearance and file its written statement. The appellant as well as the creditor bank shall co-operate for a time bound disposal of the arbitration cases. It will be

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WA 1782/2017

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open to the appellant to furnish security in each of the arbitration cases and in the event of such security being accepted, it will be open to the appellant to operate the bank accounts maintained by it in the Thiruananthapuram District Co-operative Bank.

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(P.N. Ravindran, Judge)

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(Devan Ramachandran, Judge)

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kav/

The Mulloor Rural Co-Operative Society Ltd. No.T 1499 v. the Thiruvananthapuram District Co-Operative Bank

Case brief

What is this about?

What did the court decide?

The Mulloor Rural Co-Operative Society Ltd. No.T 1499 v. the Thiruvananthapuram District Co-Operative Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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