Disposed

Raju v. Assistant Registrar of Co-Operative Societies (General)

Kerala HC11 Jul 2024WP(C)/22794/2024

Case brief

AI extract

What is this about?

Borrower defaulted on a housing loan from a co-operative rural bank facing coercive recovery proceedings under the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984. Court allowed repayment of overdue amount in 15 equal monthly instalments with current EMIs; coercive proceedings deferred unless he defaults.

What did the court decide?

Petitioner permitted to remit ₹12,48,439/- overdue amount in 15 equal monthly instalments plus interest, charges and current EMIs; coercive proceedings deferred if paid.

Raju Vs Assistant Registrar of Co-Operative Societies… — 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 11TH DAY OF JULY 2024 / 20TH ASHADHA, 1946

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WP(C) NO. 22794 OF 2024

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PETITIONER:

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RAJU

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AGED 53 YEARS S/O VASUDEVAN, MARATTU HOUSE, NATTIKKA VILLAGE, CHAVAKKAD, THRISSUR – 680566

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BY ADV DILIP J. AKKARA

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RESPONDENTS:

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1 ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL)

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OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE
SOCIETIES, CHAVAKKAD, THRISSUR, PIN - 680506

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2 NATTIKA FIRKA CO-OPERATIVE RURAL BANK LTD. NO. F 1251, H.O. VALAPPAD, TRIPRAYAR, THRISSUR, REPRESENTED BY MANAGER, PIN - 680567

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3 SPECIAL SALE OFFICER THE NATTIKA FIRKA CO-OPERATIVE RURAL BANK LTD NO.1251, H.O. VALAPAD, OFFICE OF ASST. REGISTRAR (G) OF CO-OPERATIVE SOCIETIES, CHAVAKKAD, THRISSUR, PIN – 680506

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BY ADV M.SASINDRAN

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SMT.SHEEJA C.S., SENIOR GOVERNMENT PLEADER

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 11.07.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:

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WP(C) No.22794 of 2024

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JUDGMENT

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Dated this the 11^th day of July, 2024

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The petitioner has approached this Court aggrieved by

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the coercive proceedings for recovery of financial advance made by the Nattika Firka Co-operative Rural Bank Limited to the petitioner, invoking the provisions of the Kerala State Cooperative Agricultural and Rural Development Banks Act, 1984.

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The Bank paid ₹7 lakhs to the petitioner as Housing Loan in the year 2016. 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 due to financial stringency. The repayment of loan fell into arrears later. 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 monthly instalments, the Bank authorities were not yielding. The

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WP(C) No.22794 of 2024

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authorities, instead, started coercive proceedings, invoking

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the provisions of the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984 and issued Ext.P1 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 2^nd respondent is 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

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the Bank and denied all the statements made by the petitioner. On behalf of the Bank, it is submitted that the loan

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was given to the petitioner in the year 2016. 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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WP(C) No.22794 of 2024

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provisions of the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984. 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 as on 06.07.2024 is ₹12,48,439/- and the overdue amount as on 06.07.2024 is ₹13,88,675/-.

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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 occurred lately due to reasons beyond the control of the

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WP(C) No.22794 of 2024

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petitioner. The petitioner has provided substantial security

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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 overdue amount of ₹12,48,439/- in 15 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 12.08.2024.

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(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.

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WP(C) No.22794 of 2024

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(iii) The petitioner shall also pay current

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EMIs along with the aforesaid payments.

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(iv) If the petitioner makes payments as

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directed above, coercive proceedings, if any,

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against the petitioner shall stand deferred.

Sd/-

N.NAGARESH

JUDGE

spk

WP(C) No.22794 of 2024

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APPENDIX OF WP(C) 22794/2024

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PETITIONER EXHIBITS

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Exhibit P-1

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PHOTOCOPY OF SALE NOTICE DATED 21-05-
2024 ISSUED BY THE 3RD RESPONDENT SALE
OFFICER

Raju v. Assistant Registrar of Co-Operative Societies (General)

Case brief

What is this about?

What did the court decide?

Raju v. Assistant Registrar of Co-Operative Societies (General)

Case brief

What is this about?

What did the court decide?

What the court decided

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