Disposed

Varghese P.V v. Mannam Service Co-Operative Bank Limited- 3647

Kerala HC9 Jul 2024WP(C)/16070/2024

Case brief

AI extract

What is this about?

Petitioner sought instalments to repay defaulted co-operative bank loan and halt coercive recovery. Court allowed repayment in 15 monthly instalments of ₹63,68,919 outstanding, and directed the bank to consider One Time Settlement under Circular No.18 of 2024 if approached within a week.

What did the court decide?

Repayment of ₹63,68,919 plus interest in 15 equal monthly instalments, first within one month; consideration of OTS per Circular No.18 of 2024 if applied within one week.

Varghese P.V Vs Mannam Service Co-Operative Bank… — Cooperative Societies | Kerala HC (2024)

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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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TUESDAY, THE 9^TH DAY OF JULY 2024 / 18TH ASHADHA, 1946 WP(C) NO. 16070 OF 2024

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PETITIONER:

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VARGHESE P.V AGED 62 YEARS, SON OF P.V VARKEY, PARAKKAL HOUSE, GANDHINAGAR P.O, ATHIRAMPUZHA, KOTTAYAM TALUK, KOTTAYAM DISTRICT – 686008.

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BY ADVS. IRFAN ZIRAJ P.M.ZIRAJ

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RESPONDENTS:

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1 MANNAM SERVICE CO-OPERATIVE BANK LIMITED 3647, KOTTAYAM DISTRICT PIN - 686561 REPRESENTED BY ITS SECRETARY.

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2 THE SECRETARY

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MANNAM SERVICE CO-OPERATIVE BANK LIMITED 3647, KOTTAYAM DISTRICT, PIN – 686561.

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3 THE SALE OFFICER OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (G), KOTTAYAM, KOTTAYAM DISTRICT, PIN – 686001.

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BY ADVS. JOJO C A S.JIJI JOSEPH ANU A.A

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C)No.16070 of 2024

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J U D G M E N T

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Dated this the 9^th day of July, 2024

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The petitioner has approached this Court seeking to direct the 2 nd respondent to grant 60 monthly instalments to the petitioner to clear off the entire dues with the 1 st respondent-Bank and grant six months breathing time to clear off the first instalment.

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2 . The petitioner submits that non-consideration of Ext.P3 representation submitted by the petitioner seeking an option to pay off the defaulted loan amount, would harm the petitioner. The respondents are currently proceeding with revenue recovery without issuance of notice and without considering Ext.P3 representation submitted by the petitioner, contends the petitioner.

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3 . Standing Counsel entered appearance and resisted the writ petition on behalf of the 1 st respondent-Bank. The Standing Counsel submitted that the loan taken by the

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W.P.(C)No.16070 of 2024

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petitioner has grown up to ₹63,68,919/- as outstanding as on 09.07.2024. The petitioner has not cared to repay the loan amount with promptitude. In spite of repeated requests made by the Bank, the petitioner defaulted in remitting the amount. It is in such circumstances, the respondents resorted to coercive proceedings and to put the mortgaged property to sale.

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4 . I have heard the learned Counsel for the petitioner

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and the learned Standing Counsel representing the respondents.

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5 . The limited prayer of the petitioner in this writ petition is to grant reasonable and sufficient instalments facility, so as to discharge the liability with the Bank within a reasonable time frame. It was submitted during the argument that a One Time Settlement Scheme is now afloat in the 1st respondent-Bank in view of the Circular No.18 of 2024 of the Registrar of Co-operative Societies. The petitioner expresses his desire to settle the loan account through One

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Time Settlement. Taking into consideration the afore facts,

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W.P.(C)No.16070 of 2024

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I am of the view that the writ petition can be disposed of with appropriate directions.

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6 . The petitioner is permitted to repay the entire outstanding amount of ₹63,68,919/- (as on 09.07.2024) along with accruing interest and other Bank charges, if any, in 15 equal monthly instalments. The first of such instalments shall be paid within a period of one month from today. In the meanwhile, if the petitioner approaches the respondents for One Time Settlement of the loan account in the light of Circular No.18 of 2024 within one week, the respondents shall consider the same and pass appropriate orders thereon. If the petitioner fails to avail the benefit of One Time Settlement, the petitioner shall be governed by the instalment facility ordered hereinabove.

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The writ petition is disposed of as above.

Sd/-

N. NAGARESH

JUDGE

ams

W.P.(C)No.16070 of 2024

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APPENDIX OF WP(C) 16070/2024

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PETITIONER'S EXHIBITS

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Exhibit P1 TRUE COPY OF THE JUDGEMENT DATED 11.12.2023 IN W.P(C) 38974 OF 2022 Exhibit P2 TRUE COPY OF THE RECEIPT ISSUED BY THE FIRST RESPONDENT AFTER PAYMENT OF RS.4,52,266 Exhibit P3 TRUE COPY OF THE REPRESENTATION DATED 04.04.2024

Varghese P.V v. Mannam Service Co-Operative Bank Limited- 3647

Case brief

What is this about?

What did the court decide?

Varghese P.V v. Mannam Service Co-Operative Bank Limited- 3647

Case brief

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What did the court decide?

What the court decided

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