Disposed

Sathyan v. Thalore Service Co-Operative Bank Ltd. NO.435

Kerala HC9 Jul 2024WP(C)/21856/2024

Case brief

AI extract

What is this about?

Borrower challenged coercive recovery proceedings by a co-operative bank on a defaulted ₹5 lakh loan, sought instalment facility. Court directed repayment of the outstanding amount in 14 equal monthly instalments; coercive proceedings deferred if payments made.

What did the court decide?

Petitioner permitted to remit ₹13,23,928/- in 14 equal monthly instalments with interest; coercive proceedings deferred during compliance, resumable on default.

Sathyan Vs Thalore Service Co-Operative Bank Ltd. NO.435 — Cooperative Societies | Kerala HC (2024)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT

¶3

THE HONOURABLE MR.JUSTICE N.NAGARESH

¶4

TUESDAY, THE 9^TH DAY OF JULY 2024 / 18TH ASHADHA, 1946 WP(C) NO. 21856 OF 2024

¶5

PETITIONER:

¶6

SATHYAN AGED 59 YEARS, SON OF SREEDHARAN, PANKARA HOUSE, THRIKKUR, KALLUR VILLAGE, MUKUNDHAPURAM TALUK, THRISSUR – 680306.

¶7

BY ADVS. P.M.ZIRAJ IRFAN ZIRAJ

¶8

RESPONDENTS:

¶9

1 THALORE SERVICE CO-OPERATIVE BANK LTD. NO.435, THALOREP.O., THRISSUR DISTRICT REPRESENTED BY ITS SECRETARY, PIN – 680306.

¶10

2 THE SECRETARY THALORE SERVICE CO-OPERATIVE BANK LTD. NO.435, THALOREP.O., THRISSUR PIN – 680306.

¶11

3 THE SPECIAL SALE OFFICER THALORE SERVICE CO-OPERATIVE BANK LTD. NO.435, THALOREP.O., THRISSUR – 680306.

¶12

BY ADVS. G.RANJITA JAISON SHIFANA SHAFEEQ ASHITHA PAULY

¶13

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

¶14

W.P.(C)No.21856 of 2024

¶15

:2:

¶16

J U D G M E N T

¶17

Dated this the 9^th day of July, 2024

¶18

The petitioner has approached this Court aggrieved by

¶19

the coercive proceedings for recovery of financial advance made by the Thalore Service Co-operative Bank to the petitioner, invoking the provisions of the Kerala Co-operative Societies Act, 1969.

¶20

The Bank paid ₹5 lakhs as loan to the petitioner in the year 2014. The petitioner states that though the petitioner made remittances promptly during the initial repayment period

¶21

of the financial advance, he could not pay the instalments promptly later due to financial difficulties. The repayment of loan fell into arrears. It happened due to reasons beyond the

¶22

W.P.(C)No.21856 of 2024

¶23

:3:

¶24

control of the petitioner.

¶25

Though the petitioner requested the Bank to permit

¶26

the petitioner to repay the overdue amounts in easy 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.

¶27

The petitioner states that he is still in a position to

¶28

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.

¶29

Standing Counsel entered appearance on behalf of

¶30

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 2014. The petitioner

¶31

W.P.(C)No.21856 of 2024

¶32

:4:

¶33

committed default in repaying the loan.

¶34

The Bank repeatedly reminded the petitioner and

¶35

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 provisions of the Kerala Co-operative Societies Act, 1969. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.

¶36

The Standing Counsel, however, submitted that if the petitioner is ready and willing to remit the balance outstanding amount in instalments, 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 as on 09.07.2024 is ₹13,23,928/-.

¶37

I have heard the counsel for the petitioner and the Standing Counsel representing the Bank.

¶38

W.P.(C)No.21856 of 2024

¶39

:5:

¶40

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 occurred lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the Bank.

¶41

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.

¶42

The writ petition is therefore disposed of with the following directions:

¶43

(i) The petitioner shall remit the outstanding amount of ₹13,23,928/- in 14 equal and consecutive monthly instalments along with accruing interest and other Bank charges, if any. The first instalment shall be

¶44

W.P.(C)No.21856 of 2024

¶45

:6:

¶46

paid on or before 09.08.2024.

¶47

(ii) If the petitioner commits default in

¶48

making payments as directed above, the respondents will be at liberty to continue with coercive proceedings against the petitioner in accordance with law.

¶49

(iii) If the petitioner makes payments as directed above, coercive proceedings, if any,

¶50

against the petitioner shall stand deferred.

¶51

Sd/- N. NAGARESH JUDGE

¶52

ams

¶53

W.P.(C)No.21856 of 2024

¶54

:7:

¶55

APPENDIX OF WP(C) 21856/2024

¶56

PETITIONER'S EXHIBIT

¶57

Exhibit P1

¶58

TRUE COPY OF THE REPRESENTATION DATED 14.6.2024 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT WITH COPY TO THIRD RESPONDENT

Sathyan v. Thalore Service Co-Operative Bank Ltd. NO.435

Case brief

What is this about?

What did the court decide?

Sathyan v. Thalore Service Co-Operative Bank Ltd. NO.435

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Kamaludheen, Vs Special Sales Officer

Parameswaran Vs the Assistant Registrar of Co. Operative Society( General)

Sheji G. Vs Varkala Cooperative Agricultural and Rural Development Bank Ltd.

P.M.Narayanan Vs Mukkom, Service Co-Operative Bank Ltd. No.F 1241

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

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