Disposed

Sunny. M.K v. the Hosdurg Primary Co-Op Agricultural & Rural Development Bank

Kerala HC9 Jul 2024WP(C)/20495/2024

Case brief

AI extract

What is this about?

A borrower sought instalment-based repayment of an overdue housing loan to avoid coercive recovery proceedings by a co-operative bank. The court disposed of the petition directing payment of the overdue amount in 15 equal monthly instalments with current EMIs; coercive proceedings deferred unless the petitioner defaults.

What did the court decide?

Overdue ₹11,71,369/- payable in 15 equal monthly instalments plus interest and current EMIs; coercive proceedings deferred during repayment, resuming on default.

Sunny. M.K Vs the Hosdurg Primary Co-Op Agricultural… — 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 9TH DAY OF JULY 2024 / 18TH ASHADHA, 1946

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WP(C) NO. 20495 OF 2024

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PETITIONER:

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SUNNY. M.K
AGED 53 YEARS, S/O KURIAN M.J ,
MANISSERI HOUSE , KANHANGAD ,BELLA P.O
KASARAGOD DT, PIN – 671 531.

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BY ADVS.

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M.R.REENA
P.S.SUJETH

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RESPONDENTS:

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1THE HOSDURG PRIMARY CO-OP AGRICULTURAL
AND RURAL DEVELOPMENT BANK
REPRESENTED BY ITS SECRETARY KANHANGAD ,
KASARAGOD DISTRICT, PIN – 671 315.

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2THE SECRETARY
THE HOSDURG PRIMARY CO-OP AGRICULTURAL AND
RURAL DEVELOPMENT BANK KANHANGAD ,
KASARAGOD DISTRICT, PIN – 671 315.

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BY ADVS.

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T.R.HARIKUMAR
ARJUN RAGHAVAN(K/1277/2012)

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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.20495 of 2024

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JUDGMENT

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Dated this the 9^th day of July, 202 4

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The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the 1^st respondent-Bank to the petitioner, invoking the Provisions of the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984.

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The Bank paid ₹18 lakhs to the petitioner as Housing Loan in the year 2019. 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 Covid-19 pandemic. It happened due to reasons beyond the control of the petitioner.

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Though the petitioner requested the Bank to

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permit the petitioner to repay the overdue amounts in easy

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W.P.(C) No.20495 of 2024

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monthly instalments, the Bank authorities were not yielding. The authorities, instead, started coercive proceedings, invoking the provisions of the the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984 .

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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 2019. 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.20495 of 2024

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provisions of the Kerala State Co-operative Agricultural and Rural Development Act. 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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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 is ₹24,31,369/- and the overdue amount as on 30.06.2024 is 11,71,69/-₹ .

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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 account occurred lately due to reasons beyond the

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W.P.(C) No.20495 of 2024

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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 his 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 ₹11,71,369/- in 15 equal monthly installments along with accruing interest and other Bank charges, if any. First of such installments shall be paid on or before 09.08.2024.

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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 coercive proceedings against the

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W.P.(C) No.20495 of 2024

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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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(iv) If the petitioner pays the instalments as directed above, any coercive proceedings against the petitioner shall stand deferred.

Sd/- N. NAGARESH

JUDGE

AMR

W.P.(C) No.20495 of 2024

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PETITIONER’S EXHIBITS

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Exhibit -P1TRUE COPY OF THE DEMAND NOTICE ISSUED
ON 23-09-2023 ISSUED BY THE 2ND
RESPONDENT.

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Exhibit -P2

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TRUE COPY OF THE REPRESENTATION GIVEN
BY THE PETITIONER DATED 15-11-2023.

Sunny. M.K v. the Hosdurg Primary Co-Op Agricultural & Rural Development Bank

Case brief

What is this about?

What did the court decide?

Sunny. M.K v. the Hosdurg Primary Co-Op Agricultural & Rural Development Bank

Case brief

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What did the court decide?

What the court decided

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