Disposed

Manoj C v. Vs Assistant Registrar of Co-Operative Societies ( General ) Thrissur

Kerala HC18 Jul 2024WP(C)/18034/2023

Case brief

AI extract

What is this about?

Writ petition against coercive recovery proceedings by a co-operative society for a defaulted ₹5 lakh mortgage loan of 2013. Court disposed the matter permitting repayment of ₹9,80,964 in 12 monthly instalments, with coercive proceedings deferred on compliance and revived on default.

What did the court decide?

Petitioner permitted to remit ₹9,80,964 in 12 monthly instalments; coercive proceedings deferred if paid as directed.

Manoj C v Vs Assistant Registrar of Co-Operative… — 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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THURSDAY, THE 18TH DAY OF JULY 2024 / 27TH ASHADHA, 1946
WP(C) NO. 18034 OF 2023

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PETITIONER:

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MANOJ C V
AGED 49 YEARS, S/O VELAYUDHAN,
CHEERAMPULLY HOUSE, KANAKASEERY ,
MARATHAKARA, THRISSUR., PIN – 680 306.

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BY ADVS.

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ANESH PAUL
FREDY FRANCIS(K/243/2014)

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RESPONDENTS:

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1 ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES ( GENERAL ) THRISSUR, CIVIL STATION, AYYANTHOL, THRISSUR., PIN – 680 003.

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2 OLLUR MULTIPURPOSE CO-OPERATIVE SOCIETY (R1120) REPRESENTED BY ITS SECRETARY, OLLUR P.O, THRISSUR, PIN – 680 006.

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BY ADVS.

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T.R.HARIKUMAR, FOR R2
ARJUN RAGHAVAN(K/1277/2012)
ANIMA M, GOVERNMENT PLEADER

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY
HEARD ON 18.07.2024, THE COURT ON THE SAME DAY DELIVERED
THE FOLLOWING:

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W.P.(C) No.18034 of 2023

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JUDGMENT

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Dated this the 18^th day of July , 2024

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The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Ollur Multipurpose Co-operative Society to the petitioner, invoking the provisions of the Kerala Co-operative Societies Act, 1969.

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The Bank paid ₹5 lakhs to the petitioner as Mortgage Loan in the year 2013. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, he could not pay the repayment instalments promptly later. The repayment of loan fell into arrears later due to financial problems. It happened due to reasons beyond the control of the petitioner.

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Though the petitioner requested the Bank to permit the petitioner to repay the overdue amounts in easy

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W.P.(C) No.18034 of 2023

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monthly 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.P2 notice.

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The petitioner states that he 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 instalments. If the respondents are permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, he 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 2013. The petitioner committed default in repaying the loan.

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The Bank repeatedly reminded the petitioner and required him 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

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W.P.(C) No.18034 of 2023

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provisions of the Kerala Co-operative Societies Act, 1969. The impugned Ext.P2 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 outstanding amount immediately thereafter, a short breathing time can be granted

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to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioner as on 15.07.2024 is ₹9,80,964/-.

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I have heard the counsel for the petitioner and the Standing Counsel representing the Bank. I have also heard the Government Pleader representing the 2^nd respondent.

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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

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W.P.(C) No.18034 of 2023

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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 outstanding amount of ₹9,80,964/- 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 19.08.2024.

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

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W.P.(C) No.18034 of 2023

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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

AMR

W.P.(C) No.18034 of 2023

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APPENDIX OF WP(C) 18034/2023

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PETITIONER’S EXHIBITS

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Exhibit P1TRUE COPY OF THE LOAN STATEMENT OF
LOAN ACCOUNT NO 867 DATED NIL.

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Exhibit P2

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TRUE COPY OF THE SALE NOTICE NO 857/15
RECEIVED BY THE PETITIONER HAVING
DATED 04.05.2023 ISSUED BY THE 1ST
RESPONDENT.

Manoj C v. Vs Assistant Registrar of Co-Operative Societies ( General ) Thrissur

Case brief

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Manoj C v. Vs Assistant Registrar of Co-Operative Societies ( General ) Thrissur

Case brief

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