Disposed

Shobana K.P v. Thamarassery Primary Agricultural Rural Development Bank Ltd.

Kerala HC20 Dec 2023WP(C)/20891/2023

Case brief

AI extract

What is this about?

The single judge disposed of this writ petition filed by a bank customer against coercive recovery proceedings. The court granted a suspension of coercive measures, directing the petitioner to remit overdue dues in ten equal monthly installments with interest to defer auction proceedings.

What did the court decide?

Coercive proceedings deferred on condition that the petitioner remits overdue amount of ₹1,95,660/- and current EMIs in 10 monthly installments starting 22.01.2024.

Shobana K.P Vs Thamarassery Primary Agricultural Rural… — Banking and Recovery | Kerala HC (2023)

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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 N.NAGARESH

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WEDNESDAY, THE 20TH DAY OF DECEMBER 2023 / 29TH AGRAHAYANA, 1945
WP(C) NO. 20891 OF 2023

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PETITIONER:

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SHOBANA K.P
AGED 60 YEARS

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D/O. RAMANKUTTY, RESIDING AT MELADATH, PANAGAD P.O.,
KOZHIKODE, PIN – 673612

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BY ADVS.
M.S.AMAL DHARSAN
NOEL JACOB

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RESPONDENTS:

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1 THAMARASSERY PRIMARY AGRICULTURAL RURAL DEVELOPMENT BANK LTD.

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D 3156, THAMARASSERY, KOZHIKODE,
REPRESENTED BY ITS SECRETARY, PIN - 673573

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2 THE BRANCH MANAGER THAMARASSERY PRIMARY AGRICULTURAL RURAL DEVELOPMENT BANK LTD., D 3156, THAMARASSERY, KOZHIKODE, PIN - 673573

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3 THE SENIOR INSPECTOR OF CO-OPERATIVE SOCIETIES/ SPECIAL SALES OFFICER THAMARASSERY PRIMARY AGRICULTURAL RURAL DEVELOPMENT BANK LTD., D 3156,

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THAMARASSERY, KOZHIKODE, PIN – 673573

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BY ADV M.SASINDRAN

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
20.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO.20891 OF 2023

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JUDGMENT

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Dated this the 20^th day of December, 2023

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The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Thamarassery Primary Agricultural and Rural Development Bank Limited to the petitioner, invoking the provisions of the Kerala Co-operative Societies Act, 1969.

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The Bank paid ₹2.5 lakhs to the petitioner and her

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husband as Agricultural Loan in the year 2018. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, she could not pay the repayment installments promptly later due to financial stringencies. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioner.

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WP(C) NO.20891 OF 2023

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Though the petitioner requested the Bank to permit the petitioner to repay the overdue amounts in easy monthly installments, the Bank authorities were not yielding. The authorities, instead started coercive proceedings invoking the provisions of the Kerala Co-operative Societies Act, 1969 and issued Ext.P6 notice.

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The petitioner states that she is still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly installments. If the respondent is permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, she will be put to untold hardship and loss.

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Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioner. On behalf of the respondents, it is submitted that the loan was given to the petitioner in the year 2018. The petitioner committed default in repaying the loan.

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WP(C) NO.20891 OF 2023

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4

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The Bank repeatedly reminded the petitioner and required her to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the Bank had no other go than to proceed against the petitioner invoking the provisions of Kerala Co-operative Societies Act, 1969. The impugned Ext.P6 notice was issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.

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The Standing Counsel, however, submitted that if the petitioner is ready and willing to make a substantial payment soon and remit the balance overdue amount immediately thereafter, a short breathing time can be granted to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioner as on 20.12.2023 is ₹3,08,901/- and the overdue amount is 1,95,660/-.₹

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WP(C) NO.20891 OF 2023

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I have heard the counsel for the petitioner and the Standing Counsel representing the Bank.

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The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the loan account initially. The default in repayment of the loan occurred lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the Bank.

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In the facts and circumstances of the case, I am inclined to dispose of the writ petition giving a short and reasonable time to the petitioner to clear off the liability.

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The writ petition is therefore disposed of with the following directions:

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(i) The petitioner shall remit the overdue amount of 1,95,660/- in 10 consecutive and₹ equal monthly installments along with accruing interest and other Bank charges, if

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WP(C) NO.20891 OF 2023

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any. First of such installments shall be paid on or before 22.01.2024.

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(ii) If the petitioner commits default in making payments as directed above, the respondent will be at liberty to continue with the coercive proceedings against the petitioner in accordance with law.

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(iii) The petitioner shall also pay current EMIs along with the aforesaid payments.

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(iii) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred.

Sd/-

N.NAGARESH JUDGE

hmh

WP(C) NO.20891 OF 2023

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PETITIONER EXHIBITS

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Exhibit P1TRUE COPY OF THE DEMAND NOTICE DATED
20/07/2022 ISSUED BY THE 1ST RESPONDENT
TO THE PETITIONER
Exhibit P2TRUE COPY OF THE RECEIPTS DATED
13/03/2023
Exhibit P3TRUE COPY OF THE NOTICE DATED
19/04/2023 ISSUED BY THE 3RD RESPONDENT
Exhibit P4TRUE COPY OF THE RELEVANT PAGES OF THE
NEWSPAPER PUBLICATION DATED 24/05/2023
OF DESHABHIMANI NEWSPAPER
Exhibit P5TRUE COPY OF THE AVAILABLE CASH
RECEIPTS EVIDENCING PAYMENT MADE AT
BABY MEMORIAL HOSPITAL DATED 21/06/2023
Exhibit P6TRUE COPY OF THE NOTICE DATED
02/06/2023 ISSUED BY 3RD RESPONDENT TO
THE PETITIONER

Shobana K.P v. Thamarassery Primary Agricultural Rural Development Bank Ltd.

Case brief

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Shobana K.P v. Thamarassery Primary Agricultural Rural Development Bank Ltd.

Case brief

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