The Court deferred coercive proceedings against a petitioner recovering a loan default. It directed payment of arrears in 12 monthly instalments; failure to adhere allows resumption of recovery action.
Coercive proceedings deferred subject to payment of ₹11,56,338/- in 12 monthly instalments; default permits resumption of recovery action.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 24TH DAY OF JULY 2024 / 2ND SRAVANA, 1946 WP(C) NO. 13226 OF 2024
PETITIONER:
BEENA T.P
AGED 49 YEARS
D/O LAKSHMI, THAMBILLATH HOUSE,
SOUTH MAMBALAM, FCI ROAD, PAYYANNUR TALUK,
PAYYANNUR, KANNUR DISTRICT, PIN – 670307
BY ADV P.BABU
RESPONDENTS:
1SPECIAL SALE OFFICER
OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE
SOCIETIES, PAYYANNUR, MAINROADPERUMBA,
PAYYANNUR, PIN - 670307
2 BRANCH MANAGER
THE PAYYANNUR CO-OPERATIVE RURAL BANK,
MAHADEVA GRAMAM BRANCH, NEAR S.S TEMPLE,
MANIYAN ROAD,PAYYANNUR,
KANNUR DISTRICT, PIN - 670307
3THE SECRETARY
PAYYANNUR CO-OPERATIVE RURAL BANK LTD NO.F 1234,
PAYYANNUR, KANNUR DISTRICT, PIN – 670307
BY ADVS.
SMT.ANIMA, GOVERNMENT PLEADER
SRI.M.V.AMARESAN
S.S.ARAVIND(K/990/2009)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 24.07.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) No.13226 of 2024
JUDGMENT
Dated this the 24th day of July, 2024
The petitioner has approached this Court aggrieved by
the coercive proceedings for recovery of financial advance made by the Payyannur Co-operative Rural Bank Limited to the petitioner, invoking the provisions of the Kerala Co-operative Societies Act, 1969.
the petitioner to repay the overdue amounts in easy monthly
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WP(C) No.13226 of 2024
instalments, 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.P1 notice.
clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the Bank 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.
the Bank and denied all the statements made by the petitioner. On behalf of the Bank, it is submitted that the loan was given to the petitioner in the year 2014. The petitioner committed default in repaying the loan.
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WP(C) No.13226 of 2024
go than to proceed against the petitioner invoking the provisions of the Kerala Co-operative Societies Act, 1969. The impugned Ext.P1 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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WP(C) No.13226 of 2024
petitioner. The petitioner has provided substantial security which will safeguard the interest of the Bank.
(i) The petitioner shall remit the outstanding amount of ₹11,56,338/- in 12 consecutive and equal monthly instalments along with accruing interest and other Bank charges, if any. First of such instalments shall be paid on or before 23.08.2024.
(ii) If the petitioner commits single default in making payments as directed above, the Bank will be at liberty to continue with the coercive proceedings against the petitioner in
accordance with law.
WP(C) No.13226 of 2024
6
(iii) If the petitioner makes payments as
directed above, coercive proceedings, if any,
against the petitioner shall stand deferred.
Sd/-
N.NAGARESH JUDGE
spk
WP(C) No.13226 of 2024
7
APPENDIX OF WP(C) 13226/2024
PETITIONER EXHIBITS
Exhibit P1
TRUE COPY OF THE DEMAND NOTICE ISSUED
BY THE 1ST RESPONDENT DATED 18-1-2024
2 issues framed by the court
Whether the coercive proceedings for recovery of a loan advance by a Co-operative Bank should be dismissed or deferred in light of hardship to the petitioner.
Whether the petitioner is entitled to a reasonable time to clear loan dues via monthly instalments before coercive action is resumed.
1 provisions across 1 enactments
Beena T.P.
Special Sale Officer, Office of the Assistant Registrar of Co-operative Societies, Payyannur
Branch Manager, The Payyannur Co-operative Rural Bank, Mahadeva Gramam Branch
The Secretary, Payyannur Co-operative Rural Bank Ltd
N. Nagaresh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court