Partly allowed

Ramachandran v. Registrar of Co-Operative Societies

Kerala HC3 Jan 2018WP(C)/8551/2016

Case brief

AI extract

What is this about?

The High Court disposed of a writ petition challenging an Ombudsman order demanding immediate loan repayment. The Court allowed installment payment of the outstanding amount to prevent recovery proceedings, directing default consequences.

What did the court decide?

Petitioner allowed ten-month instalment plan; recovery proceedings kept in abeyance; default leads to resumption of recovery.

Ramachandran Vs Registrar of Co-Operative… — Contract and Commercial Disputes | Kerala HC (2018)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN

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WEDNESDAY, THE 3RD DAY OF JANUARY 2018 / 13TH POUSHA, 1939

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PETITIONER

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RAMACHANDRAN, S/O.LATE CHAMI., 53 YEARS, MARATTARUKIL VEEDU, KOTTAPPURAM P.O., SHREEKRISHNAPURAM (VIA), PALAKKAD - 679 518.

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BY ADVS.SRI.K.MOHANAKANNAN

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SMT.A.R.PRAVITHA

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RESPONDENT(S):

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1. REGISTRAR OF CO-OPERATIVE SOCIETIES THIRUVANANTHAPURAM - 695 001.

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2. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) MALAPPURAM - 676 505.

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3. ASST. REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) MALAPPURAM - 676 505.

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4. THE ARAKKUPARAMBU SERVICE CO-OPERATIVE BANK REPRESENTED BY ITS SECRETARY, ARAKKUPARAMBU PO, PERINTHALMANNA TALUK, MALAPPURAM - 679 322.

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R1 TO R3 BY SR GOVERNMENT PLEADER SRI. BIMAL K. NATH R4 BY ADVS. SRI.K.M.JAMALUDHEEN SMT.LATHA PRABHAKARAN

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 03-01-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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sdr/-

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WP(C).No. 8551 of 2016 (T)

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PETITIONER(S)' EXHIBITS

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P1 - TRUE COPY OF THE DEATH CERTIFICATE OF CHAMI, FATHER OF THE PETITIONER DATED 28.8.2011

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P2 - TRUE COPY OF THE DEATH CERTIFICATE OF KALLYANI, MOTHER OF THE PETITIONER DATED 5.6.2013

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P3 - TRUE COPY OF THE AWARD PASSED BY THE 3RD RESPONDENT DATED 23.7.2015

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P4 - TRUE COPY OF THE LETTER SENT BY THE 2ND RESPONDENT TO THE 4TH RESPONDENT DATED 7.2.2014

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P5 - TRUE COPY OF THE COMPLAINT FILED BEFORE THE OMBUDSMAN FOR CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM.

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P6 - TRUE COPY OF THE ORDER PASSED BY THE OMBUDSMAN FOR CO-OPERATIVE SOCIETIES DATED 13.1.2016

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P7- TRUE COPY OF THE ASWAS SCHEME 2015

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P8 -TRUE COPY OF THE ASWAS SCHEME 2016

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P9 - TRUE COPY OF E.P. 177/2016 IN ARC 458/2014 DATED 31.10.2016

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RESPONDENTS EXHIBITS

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EXT.R4(A) TRUE COPY OF THE LETTER DATED 1.10.2013 ALONG WITH DECISION DATED 29.08.2013 OF THE 4TH RESPONDENT BANK

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EXT.R4(B) TRUE COPY OF THE LETTER DATED 18.2.2014

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EXT.R4(C) THE STATEMENT FIELD BY THE 4TH RESPONDENT BANK

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EXT.R4(D) THE ORDER OF THE OMBUDSMAN DATED 13.01.2016

/TRUE COPY/

PA TO JUDGE

sdr/-

ANIL K.NARENDRAN, J.

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--------------------------------------W.P.(C).No.8551 of 2016

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Dated this the 3^rd day of January, 2018

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J U D G M E N T

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The petitioner's father availed a loan for 1,50,000/- from the₹ 4^th respondent Bank. The petitioner has approached this Court in this writ petition under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Ext.P6 order passed by the Ombudsman for Co-operative Societies dated 13.01.2016, whereby, he has been directed to remit the principal amount outstanding in respect of the loan transaction in question before 10.03.2016 and for other consequential reliefs.

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Heard the learned counsel for the petitioner, the learned Government Pleader appearing for respondents 1 to 3 and also the learned counsel appearing for the 4^th respondent Bank.

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Admittedly, the petitioner has not availed the benefit granted by the Ombudsman for Co-operative Societies vide Ext.P6 order dated 13.01.2016. The time limit prescribed in Ext.P6 was till 10.03.2016. The petitioner filed the present writ petition before this Court on 04.03.2016. The petitioner, having failed to avail the benefit granted by the Ombudsman in Ext.P6 order, within the time limit stipulated therein, is not legally entitled for closure of the loan account in question by remittance of the principal amount

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W.P.(C).No.8551 of 2016

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outstanding. The validity of 'Aswas-2015' as per Ext.P7 circular was only up to 30.03.2015. Therefore, the petitioner has to pay off the total amount outstanding in respect of the loan account in question, if he intends to save his property from recovery proceedings.

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The learned counsel for the petitioner would submit that the petitioner shall remit the total amount outstanding in monthly installments, for which he requires a breathing time.

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The learned counsel for the 4^th respondent Bank would submit that the total amount outstanding as on 04.11.2017 comes to 3,16,235/-.₹

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Having considered the rival submissions, this writ petition is disposed of with the following directions :

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i) The petitioner shall pay off the entire amount outstanding in respect of the loan transaction in question, i.e., 3,16,235/-, together with future interest₹ from 04.01.2017, in ten monthly installments. The first installment of 50,000/- (Rupees Fifty thousand only)₹ shall be paid on or before 01.02.2018 and the balance amount shall be paid in nine equal monthly installments payable on or before the 1^st day of the succeeding months.

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ii) If the petitioner is remitting the aforesaid installments in time, all recovery proceedings pursuant to Ext.P3 award

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W.P.(C).No.8551 of 2016

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shall be kept in abeyance, so as to enable the petitioner to pay off the entire liability in installments, as directed above.

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Iii) In case of default committed by the petitioner in remitting any one of the aforesaid installments, it will be open to the 4^th respondent Bank to proceed with recovery proceedings, in accordance with law.

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Sd/-

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ANIL K.NARENDRAN JUDGE

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The date “04.01.2017” occurring in the first sentence in paragraph 5(i) of the judgment dated 03.01.2018 in W.P.(C) No.8551/2016 is corrected and substituted as “04.11.2017” as per order dated 16.03.2018 in I.A.No.2408/2018 in W.P. (C)No.8551/2016.

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Sd/- Registrar (Judicial)

Ramachandran v. Registrar of Co-Operative Societies

Case brief

What is this about?

What did the court decide?

Ramachandran v. Registrar of Co-Operative Societies

Case brief

What is this about?

What did the court decide?

What the court decided

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