Partly allowed

Sheeja Santhosh v. Kunnukara Service Co-Operative Bank Ltd. No. 877

Kerala HC24 Jan 2020WP(C)/590/2020

Case brief

AI extract

What is this about?

Joint judgment on loan recovery writ petitions. Court granted exceptional relief allowing petitioner to repay outstanding loan amount plus interest by Feb 29, 2020, conditional on strict compliance, warning of cessation of stay and resumption of recovery proceedings on default.

What did the court decide?

Directed petitioners to discharge liability of Rs. 4,85,456/- with interest to bank on or before 29.02.2020; default would result in loss of relief and resumption of recovery proceedings.

Sheeja Santhosh Vs Kunnukara Service Co-Operative Bank… — Banking and Recovery | Kerala HC (2020)

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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.K.JAYASANKARAN NAMBIAR

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FRIDAY, THE 24TH DAY OF JANUARY 2020 / 4TH MAGHA, 1941

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WP(C).No.32232 OF 2016(D)

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PETITIONER/S:

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1 SANTHOSH AGED 56 YEARS, S/O. SUBRAHMANIAN, PLASSERY HOUSE, VAYALKKARA, KUNNUKARA, ERNAKULAM DISTRICT.

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2 SHEEJA SANTHOSH AGED 49 YEARS, W/O. SANTHOSH, PLASSERY HOUSE,VAYALKKARA, KUNNUKARA, ERNAKULAM DISTRICT.

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BY ADV. SRI.P.K.SAJEEV

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RESPONDENT/S:

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1 KUNNUKARA SERVICE CO-OPERATIVE BANK LTD.NO.827 KUNNUKARA P.O., PARAVOOR TALUK, ERNAKULAM DISTRICT683524, REPRESENTED BY ITS SECRETARY.

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2 ARBITRATION EXECUTION INSPECTOR OFFICE OF ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), NORTH PARAVOOR-683513.

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R1 BY ADV. SRI.K.K.ASHKAR GOVT.PLEADER MABLE C.KURIAN

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 24.01.2020, ALONG WITH WP(C).590/2020(W), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C).Nos.32232/16 & 590/2020

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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.K.JAYASANKARAN NAMBIAR

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FRIDAY, THE 24TH DAY OF JANUARY 2020 / 4TH MAGHA, 1941

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WP(C).No.590 OF 2020(W)

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PETITIONER/S:

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SHEEJA SANTHOSH AGED 50 YEARS W/O. SANTHOSH, PLASSERY HOUSE, VAYALKKARA, KUNNUKARA POST, ERNAKULAM-683578.

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BY ADVS. SRI.DENIZEN KOMATH SRI.N.J.PRINCE

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RESPONDENT/S:

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1 KUNNUKARA SERVICE CO-OPERATIVE BANK LTD. NO. 877 KUNNUKARA POST, PARUR-683578, REPRESENTED BY ITS SECRETARY.

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2 SENIOR INSPECTOR (SPECIAL SALE OFFICER), KADUNGALLUR SCB GROUP, SAHAKARANA SAMGHAM ASSISTANT REGISTRAR(GENERAL) OFFICE, PARUR-683513.

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3 REGISTRAR OF CO-OPERATIVE SOCIETIES(GENERAL) O/O. THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THYCAUD, THIRUVANANTHAPRAM-695014.

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R1 BY ADV. SRI.UNNIKRISHNAN.S. R1 BY ADV. SRI.P.S.SIDHARTHAN GOVT.PLEADER SMT.MABLE C.KURIAN

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 24.01.2020, ALONG WITH WP(C).32232/2016(D), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C).Nos.32232/16 & 590/2020

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JUDGMENT

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As both these writ petitions involve a common issue, they are taken up for consideration together and disposed by a common judgment.

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The petitioners, who had availed a loan from the 1^st respondent Cooperative Bank, defaulted in repayment of the same. As a consequence of the same, the 1^st respondent initiated proceedings for recovery through an ARC filed before the Co-operative Arbitration Court. The said proceedings culminated in an Award, by which the petitioners were found liable to repay the defaulted amount of Rs.3,03,605/-, together with accrued interest and other charges. For realisation of the same, the 1^st respondent filed an Execution Application before the Arbitration Court. It is at that time that the petitioners approached this Court through W.P.(C).No.32232/2016, where, at the time of admission, an interim order was passed protecting the petitioners from recovery steps. The said interim order was later modified on 02.04.2018 and extended on condition that the petitioners pay an amount of Rs.50,000/- within two weeks from the said date. It is not in dispute that the petitioners did not comply with the directions in the said interim order. The non-compliance of the petitioners with the said interim direction was not reported before this Court and hence the writ petition continued to be pending before this Court, although the stay was not operational.

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In the meanwhile, the recovery proceedings continued against the petitioner consequent to the default occasioned by her in not paying the amount directed to be paid by the interim order referred above. The said

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W.P.(C).Nos.32232/16 & 590/2020

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proceedings culminated in a sale notice proposing the sale of properties belonging to the petitioner. At that stage, the petitioner preferred W.P. (C).No.590/2020, in which notice was issued to the respondent on 10.01.2020 and later, an interim stay granted on 14.01.2020 till the next date of posting.

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When the matter was taken up today, it is submitted by the learned counsel for the petitioner that the total amount outstanding from the petitioner as on 25.11.2019 is Rs.4,85,456/-. When I queried the learned counsel for the petitioner on the time the petitioner would require for repaying the said amount to the Bank, more so under circumstances where she had already defaulted on earlier directions issued from this Court in W.P. (C).No.32232/2016, the learned counsel for the petitioner assures that the amount of Rs.4,85,456/-, together with accrued interest from 25.11.2019 till the date of payment, will be paid to the respondent Bank on or before 29.02.2020. The limited request of the learned counsel for the petitioner is for a direction to the respondent Bank to consider extension of any relief to the petitioner based on Ext.P6 scheme, if the petitioner is found satisfying the conditions for getting the benefits under such scheme.

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Taking note of the said submission of the learned counsel for the petitioners as also the plea of financial hardship urged on their behalf, I dispose the writ petition with the following directions:

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i. The petitioners shall discharge the liability of Rs.4,85,456/- together with accrued interest from 25.11.2019 till the date of payment, to the respondent, subject to her getting the benefit of any concession under Ext.P6 scheme, on or before 29.02.2020 to the respondent Bank.

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W.P.(C).Nos.32232/16 & 590/2020

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ii. If the petitioners default in the aforesaid condition, they will lose the benefit of this judgment and the respondents will be free to initiate recovery proceedings from the stage at which they currently stand.

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iii. It is further made clear that, inasmuch as it is in exceptional cases that this Court would grant the relief aforementioned, no further petition for modification/extension of time will be entertained.

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iv. The petitioners shall produce a copy of the Writ Petition and a copy of the judgment before the respondents for further action.

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Sd/-

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A.K.JAYASANKARAN NAMBIAR JUDGE

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okb

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//True copy// P.S. to Judge

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W.P.(C).Nos.32232/16 & 590/2020

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APPENDIX OF WP(C) 32232/2016

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF THE NOTICE DATED 18-03-2015 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONERS.

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EXHIBIT P2 TRUE COPY OF THE OBJECTION FILED BY THE 2ND PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P3 TRUE COPY OF THE POSTAL RECEIPT DATED 0904-2015. EXHIBIT P4 TRUE COPY OF THE SALE PROCLAMATION DATED 09-08-2016 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P5 TRUE COPY OF THE PROPERTY SCHEDULED FOR SALE ISSUED BY THE 2ND RESPONDENT.

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EXHIBIT P6 TRUE COPY OF THE SALE PROCLAMATION DATED 27-01-2016 IN E.P.253/2013 IN O.S. 419/2006 ON THE FILES OF ADDITIONAL SUB COURT, NORTH PARAVOOR.

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W.P.(C).Nos.32232/16 & 590/2020

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APPENDIX OF WP(C) 590/2020

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 TRUE PHOTOCOPY OF THE CLAIM RAISED BY THE PETITIONER DATED 23.07.2018 BEFORE THE 2ND RESPONDENT. EXHIBIT P2 TRUE PHOTOCOPY OF THE COMMISSION REPORT IN OS NO.419.2006 ON THE FILE OF ADDL.SUB COURT, NORTH PARUR. EXHIBIT P3 TRUE PHOTOCOPY OF THE PROCLAMATION IN OS NO.419.2006 ON THE FILE OF ADDL.SUB COURT, NORTH PARUR. EXHIBIT P4 TRUE PHOTOCOPY OF THE SALE NOTICE AND PROCLAMATION DATED 25.11.2019. EXHIBIT P5 TRUE PHOTOCOPY OF THE REQUEST PREFERRED BY THE PETITIONER BEFORE THE 1ST RESPONDENT DATED 23.12.2019. EXHIBIT P6 TRUE PHOTOCOPY OF THE NAVAKERALEEYAM 2020 SCHEME.

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RESPONDENT'S/S EXHIBITS:

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EXHIBIT-R1 TRUE COPY OF THE REPRESENTATION SUBMITTEDBY THE BANK DATED 01.08.2018 BEFORE THE HONOURABLE MINISTER FOR CO-OPERATIVE SOCIETIES. EXHIBIT-R2 TRUE COPY OF THE NOTICE BOOK EXHIBIT-R3 TRUE COPY OF THE NOTICE ISSUED BY THE DIRECTLY TO THE PETITIONER ON 18.01.2020

Sheeja Santhosh v. Kunnukara Service Co-Operative Bank Ltd. No. 877

Case brief

What is this about?

What did the court decide?

Sheeja Santhosh v. Kunnukara Service Co-Operative Bank Ltd. No. 877

Case brief

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What did the court decide?

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