The High Court of Kerala directed the third respondent to disburse the balance loan amount of Rs. 100.71 lakhs to the petitioner cooperative bank, which had utilized only a portion for a head office construction project, within three months.
Direction to disburse the balance loan amount of Rs. 100.71 lakhs within three months.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE SATHISH NINAN
WEDNESDAY, THE 6TH DAY OF OCTOBER 2021 / 14TH ASWINA, 1943
WP(C) NO. 7799 OF 2021
PETITIONER:
CHITTARIPARAMBA SERVICE CO-OPERATIVE BANK LTD., NO.F.1483, CHITTARIPARAMBA P.O., KANNUR-670650, REPRESENTED BY ITS SECRETARY K.V.RAJEEV.
BY ADVS. A.RAJASIMHAN SHRI. AYYAPPADAS V KUM.VYKHARI.K.U
RESPONDENTS:
1 STATE OF KERALA REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, SECRETARIAT, THIRUVANANTHAPURAM-695001.
2 REGISTRAR OF COOPERATIVE SOCIETIES, JAWAHAR SAHAKARANA BHAVAN, DPI JUNCTION, THYCAUD P.O., THIRUVANANTHAPURAM-695014.
3 NATIONAL COOPERATIVE DEVELOPMENT CORPORATION, 4, SIRI INSTITUTIONAL AREA, HAUZ KHAS, NEW DELHI-110016, REPRESENTED BY ITS MANAGING DIRECTOR.
BY ADV SHRI.P.VIJAYAKUMAR, ASG OF INDIA
BY SRI.BIMAL K. NATH, SR. GOVT. PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
SATHISH NINAN, J.
= = = = = = = = = = = = = = = = = = W. P. (C) No.7799 of 2021 = = = = = = = = = = = = = = = = = = Dated this the 6th day of October, 2021
J U D G M E N T
The third respondent in the writ petition is a
statutory Corporation under the Ministry of Agriculture and Farmers Welfare. It advances loans and grants to
State Governments, for financing primary and secondary level co-operative societies under various schemes, on stipulated conditions. For the infrastructural development of the petitioner Bank (construction of head office), the petitioner made request to the third respondent for financial assistance under the NCDC Scheme. As per Ext.P1 communication dated 31.03.2016, a loan of 100.71 lakhs was sanctioned by the third respondent. As per Ext.P1, the loan period is eight years with moratorium of one year for repayment of principal loan amount. As per Ext.P2, the first installment of 36.368 lakhs was released to the
W. P. (C) No.7799 of 2021
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petitioner. Thereafter the remaining installments were not disbursed. The petitioner had to proceed with the construction by utilizing other funds. On these averments the petitioner seeks for a direction for disbursal of the balance loan amount.
100.71 lakhs cannot be disputed in the light of Ext.P1. As evidenced by Ext.P2, from out of the sanctioned amount only 36.368 lakhs has been released. The petitioner proceeded to complete the project in terms of
the original plan based on which the loan was sanctioned. There is no audit objection raised, submits the petitioner.
that, though not related to the petitioner Society,
there have been various instances of diversion of such loans for other purposes, which resulted in stalemate.
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reason why the balance loan amount, sanctioned under Ext.P1, be not disbursed to the petitioner. Let the needful be done after obtaining necessary sanctions, as expeditiously as possible and at any rate within a period of three months from the date of receipt of a copy of this judgment.
Writ petition is disposed of as above.
Sd/-
SATHISH NINAN JUDGE
kns/-
//True Copy//
P.S. to Judge
APPENDIX OF WP(C) 7799/2021
PETITIONER EXHIBITS
| EXHIBIT | P1 TRUE COPY OF THE LETTER NO.NCDC.5-12/2015-C, IC&SC/336/SA50211 DATED 31.03.2016 ISSUED BY THE 3RD RESPONDENT. |
|---|---|
| EXHIBIT | P2 TRUE COPY OF G.O.(RT)NO.585/2016/CO-OP DATED 22.11.2016. |
| EXHIBIT | P3 TRUE COPY OF THE REQUEST DATED 25.01.2021 |
| SUBMITTED BY THE PETITIONER TO THE SECRETARY, COOPERATIVE DEPARTMENT, GOVERNMENT OF KERALA. |
|
| EXHIBIT | P4 TRUE COPY OF THE RESOLUTION OF THE PETITIONER BANK DATED 27.02.2021. |
2 issues framed by the court
Whether the balance loan amount sanctioned under the NCDC Scheme should be disbursed to the petitioner bank.
Whether there is any reason preventing the disbursement of the remaining loan amount.
CHITTARIPARAMBA SERVICE CO-OPERATIVE BANK LTD.
STATE OF KERALA
REGISTRAR OF COOPERATIVE SOCIETIES
NATIONAL COOPERATIVE DEVELOPMENT CORPORATION
SATHISH NINAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
