Allowed

Muhammad Rafeeq v. Assistant Registrar of Co-Op. Societies (Genaral)

Kerala HC23 Mar 2023WP(C)/2995/2023

Case brief

AI extract

What is this about?

The High Court disposed of three writ petitions filed by individuals seeking relief from penal action taken by Malappuram Service Co-operative Bank Ltd. for loan defaults. The Court granted permission to repay the outstanding amount of Rs. 2,35,879/- along with interest and charges in 15 equated monthly instalments, directing the bank to accept this arrangement and stay coercive proceedings.

What did the court decide?

Permitted borrowers to clear total outstanding liability of Rs.2,35,879/- plus interest and charges in 15 equated monthly instalments; directed bank to stay coercive proceedings.

Muhammad Rafeeq Vs Assistant Registrar of… — Contract and Commercial Disputes | 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 GOPINATH P.

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THURSDAY, THE 23RD DAY OF MARCH 2023 / 2ND CHAITHRA, 1945

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WP(C) NO. 2995 OF 2023

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PETITIONER:

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MUHAMMAD RAFEEQ,
AGED 48 YEARS,
S/O SHOUKATHALI, ELAMBILAKKATT HOUSE, KANNATHUPARA,
DAWNHILL, MALAPPURAM DISTRICT, PIN – 676 519.
BY ADVS.
R.RANJITH (MANJERI)
A.P.NIDHIN KUMAR

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RESPONDENTS:

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1 ASSISTANT REGISTRAR OF CO-OP. SOCIETIES (GENARAL) MANJERI, MALAPPURAM DISTRICT, PIN – 676 121.

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2 THE SALES OFFICER / INSPECTOR FOR CLEARANCE, CO-OPERATIVE SOCIETY ASSISTANT REGISTRAR OFFICE MANJERI, PIN – 676 121.

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3THE MALAPPURAM SERVICE CO-OPERATIVE BANK LTD.,
MALAPPURAM DISTRICT, PIN – 676 505.
BY ADVS.
ABDUL JAWAD.K
ABDUL MAJEED.N(A-749)
A.GRANCY JOSE(K/1204-M/2010)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
23.03.2023, ALONG WITH WP(C).3082/2023, 3094/2023, THE COURT ON
THE SAME DAY DELIVERED THE FOLLOWING:

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¶14

WP(C) NOS. 2995, 3082 AND 3094 OF 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 GOPINATH P.

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THURSDAY, THE 23RD DAY OF MARCH 2023 / 2ND CHAITHRA, 1945

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WP(C) NO. 3082 OF 2023

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PETITIONER:

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NUHMAN,

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AGED 32 YEARS,
S/O ABDURAHIMAN, CHAKKINGATHODI HOUSE,
PARAPPUR P.O, MALAPPURAM DISTRICT, PIN – 676 503.
BY ADVS.
R.RANJITH (MANJERI)
A.P.NIDHIN KUMAR

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RESPONDENTS:

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1 ASSISTANT REGISTRAR OF CO-OP. SOCIETIES (GENARAL) MANJERI, MALAPPURAM DISTRICT, PIN – 676 121.

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2 THE SALES OFFICER / INSPECTOR FOR CLEARANCE, CO-OPERATIVE SOCIETY ASSISTANT REGISTRAR OFFICE MANJERI, PIN – 676 121.

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3 THE MALAPPURAM SERVICE CO-OPERATIVE BANK LTD., DISTRICT CO-OPERATIVE BUILDING, MALAPPURAM DIST., REPRESENTED BY ITS GENERAL MANAGER, PIN – 676 505. BY ADVS. ABDUL JAWAD.K ABDUL MAJEED.N(A-749) A.GRANCY JOSE(K/1204-M/2010)

¶27

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 23.03.2023, ALONG WITH WP(C).2995/2023 AND CONNECTED
CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶28

¶29

WP(C) NOS. 2995, 3082 AND 3094 OF 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 GOPINATH P.

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THURSDAY, THE 23RD DAY OF MARCH 2023 / 2ND CHAITHRA, 1945
WP(C) NO. 3094 OF 2023

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PETITIONER:

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HAFSATH,
AGED 53 YEARS,
W/O ABDURAHMAN, CHAKKINGATHODI HOUSE, PARAPPUR,
MALAPPURAM DISTRICT, PIN – 676 503.
BY ADVS.
R.RANJITH (MANJERI)
A.P.NIDHIN KUMAR

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RESPONDENTS:

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1 ASSISTANT REGISTRAR OF CO-OP. SOCIETIES (GENARAL) MANJERI MALAPPURAM DISTRICT, PIN – 676 121.

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2 THE SALES OFFICER / INSPECTOR FOR CLEARANCE, CO-OPERATIVE SOCIETY ASSISTANT REGISTRAR OFFICE MANJERI, PIN – 676 121.

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3 THE MALAPPURAM SERVICE CO-OPERATIVE BANK LTD., DISTRICT CO-OPERATIVE BUILDING, MALAPPURAM DIST., REPRESENTED BY ITS GENERAL MANAGER, PIN – 676 505. BY ADVS. ABDUL JAWAD.K ABDUL MAJEED.N(A-749) A.GRANCY JOSE(K/1204-M/2010)

¶40

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 23.03.2023, ALONG WITH WP(C).2995/2023 AND CONNECTED
CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NOS. 2995, 3082 AND 3094 OF 2023

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JUDGMENT

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These writ petitions relate to the loans availed by the petitioners from the Malappuram Service Co-operative Bank Ltd.

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The petitioner in W.P(C)No.2995 of 2023 is the brother of the petitioner in W.P(C)No.3094/2023, while the petitioner in W.P(C)No.3082/2023 is the son of the petitioner in W.P(C)No.3094/2023. When default was committed by the petitioners, action was initiated under the provisions of the Kerala Cooperative Societies Act, 1969, prompting the petitioners to approach this Court by filing the above writ petitions.

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The learned counsel appearing for the petitioners would submit that the petitioners may be permitted to clear the liability in instalments. It is submitted that the petitioners could not repay the amounts in time only on account of the economic situation created by the Covid-19 pandemic.

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The learned counsel appearing for the respondent Bank submits that the total outstanding amount in respect of all the loans availed by the petitioners in these cases as on today is Rs.2,35,879/-. It is submitted that the petitioners may also avail of the benefit of One Time Settlement in which case they will be entitled to a reduction of

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WP(C) NOS. 2995, 3082 AND 3094 OF 2023

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the total liability. However, it is submitted that if One Time Settlement is granted, the entire amount will have to be paid on or before 31.03.2023. The learned counsel appearing for the respondent Bank submits that if this Court is inclined to grant instalments to the petitioners, the numbers of instalments may be limited to five.

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Having heard the learned counsel for the petitioners and the learned counsel appearing for the respondent Bank, these writ petitions will stand disposed of permitting the petitioners to clear the total outstanding liability of Rs.2,35,879/-(Rupees two lakhs thirty five thousand eight hundred and seventy nine only) along with any accrued interest, costs and charges in 15 instalments.

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Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.2,35,879/-(Rupees two lakhs thirty five thousand eight hundred and seventy nine only) along with any accrued interest, costs and charges from the petitioners on the following conditions:

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(i)The outstanding amount of Rs.2,35,879/-(Rupees two lakhs thirty five thousand eight hundred and seventy nine only) along with any accrued interest, costs and charges shall be repaid in 15 equated monthly instalments.

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(ii)The first instalment shall be paid on or before 10.04.2023 and the subsequent instalments shall be paid on or before the 10^th day of every succeeding month.

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WP(C) NOS. 2995, 3082 AND 3094 OF 2023

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(iii)In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law.

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(iv)In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

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The writ petition is disposed of as above.

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Sd/GOPINATH P. JUDGE

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WP(C) NOS. 2995, 3082 AND 3094 OF 2023

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¶64

APPENDIX OF WP(C) 3082/2023

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PETITIONER EXHIBITS
Exhibit P1THE TRUE COPY OF THE DEMAND NOTICE ISSUED
BY THE 2ND RESPONDENT, DATED 25-05-2022.

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WP(C) NOS. 2995, 3082 AND 3094 OF 2023

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APPENDIX OF WP(C) 3094/2023

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PETITIONER EXHIBITS
Exhibit P1THE TRUE COPY OF THE DEMAND NOTICE ISSUED
BY THE 2ND RESPONDENT, DATED 25-05-2022.

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WP(C) NOS. 2995, 3082 AND 3094 OF 2023

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APPENDIX OF WP(C) 2995/2023

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PETITIONER EXHIBITS
Exhibit P1THE TRUE COPY OF THE DEMAND NOTICE ISSUED
BY THE 2ND RESPONDENT, DATED 25-05-2022

Muhammad Rafeeq v. Assistant Registrar of Co-Op. Societies (Genaral)

Case brief

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Muhammad Rafeeq v. Assistant Registrar of Co-Op. Societies (Genaral)

Case brief

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What did the court decide?

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