Disposed

Rohind v. Special Sales Officer -3

Kerala HC10 Jul 2024WP(C)/25741/2022

Case brief

AI extract

What is this about?

The High Court disposed of the writ petition challenging coercive recovery proceedings by a co-operative bank, directing the petitioners to repay the outstanding amount in ten monthly instalments. The court granted a short breathing time, deferring coercive proceedings provided the repayment schedule is strictly followed.

What did the court decide?

Petition disposed by directing petitioners to remit outstanding amount of ₹2,01,45,808/- in ten equal monthly instalments along with interest and charges. Coercive proceedings deferred if payments are

Rohind Vs Special Sales Officer -3 — 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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WEDNESDAY, THE 10^TH DAY OF JULY 2024 / 19TH ASHADHA, 1946 WP(C) NO. 25741 OF 2022

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PETITIONERS:

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1 ROHIND AGED 37 YEARS, S/O.SIVAN, RECHANA HOUSE, MANITHARA POST, AVANOOR, TRICHUR.

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2 PADMAVATHIAMMA

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AGED 81 YEARS, D/O.LAKSHMIKUTTIYAMMA, RECHANA HOUSE, MANITHARA POST, AVANOOR, TRICHUR.

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BY ADVS. M.R.SUDHEENDRAN SARITHA NANDANAN DINOOP P.D.

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RESPONDENTS:

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1 SPECIAL SALES OFFICER -3 ASSISTANT REGISTRAR OFFICE, MUKUNDAPURAM, IRINJALAKKUDA.

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2 KARUVANNOOR SERVICE CO-OPERATIVE BANK REPRESENTED BY ITS MANAGER, KARUVANNOOR, TRICHUR DIST.

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3 THE REGISTRAR OF CO-OPERATIVE SOCIETIES THIRUVANANTHAPURAM.

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BY ADVS. SRI.V.BINOY RAM SMT.MABLE C KURIAN, SR.GOVERNMENT PLEADER

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C)No.25741 of 2022

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J U D G M E N T

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Dated this the 10^th day of July, 2024

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The petitioners have approached this Court aggrieved by

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

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The Bank paid ₹50 lakhs to the 1^st petitioner as loan in the year 2015. The loan was renewed in the year 2016 by availing ₹5.60 lakhs more. The 2^nd petitioner is the surety to the loan. The petitioners state that though the petitioners made remittances promptly during the initial repayment period of the financial advance, they could not pay the instalments promptly later due to business loss. The repayment of loan fell

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W.P.(C)No.25741 of 2022

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into arrears. It happened due to reasons beyond the control of the petitioners.

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Though the petitioners requested the Bank to permit the petitioners to repay the overdue amounts in easy monthly instalments, the Bank authorities were not yielding.

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The authorities, instead, started coercive proceedings, invoking the provisions of the Kerala Co-operative Societies Act, 1969 and issued Exts.P1 to P3 notices.

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The petitioners state that they are 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 petitioners, they 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 petitioners. On behalf of the respondents, it is submitted that

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W.P.(C)No.25741 of 2022

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the loan was given to the petitioners in the year 2015. The petitioners committed default in repaying the loan.

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The Bank repeatedly reminded the petitioners and required them to clear the dues. The petitioners deliberately omitted to do so. In the circumstances, the Bank had no other go than to proceed against the petitioners invoking the provisions of the Kerala Co-operative Societies Act, 1969. The impugned Exts.P1 to P3 notices were issued in these circumstances. The petitioners have 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 petitioners are ready and willing to remit the balance outstanding amount in instalments, a short breathing time can be granted to the petitioners to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioners as on 13.06.2024 is ₹2,01,45,808/-.

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W.P.(C)No.25741 of 2022

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

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The specific case of the petitioners is that the petitioners have been making the repayment and maintaining the loan account initially. The default in repayment occurred lately due to reasons beyond the control of the petitioners. The petitioners have 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 petitioners 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 petitioners shall remit the outstanding amount of ₹2,01,45,808/- in ten equal and consecutive monthly instalments

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W.P.(C)No.25741 of 2022

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along with accruing interest and other Bank charges, if any. The first of such instalments shall be paid on or before 12.08.2024.

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

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(iii) If the petitioners make payments as directed above, coercive proceedings, if any, against the petitioners shall stand deferred.

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Sd/- N. NAGARESH JUDGE

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ams

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W.P.(C)No.25741 of 2022

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APPENDIX OF WP(C) 25741/2022

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PETITIONER'S EXHIBITS

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Exhibit P1 TRUE COPY OF THE DEMAND NOTICE DATED 22/6/2022 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONERS.

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Exhibit P2 TRUE COPY OF THE DEMAND NOTICE DATED 15/7/2022 ISSUED BY THE 2ND RESPONDENT.

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Exhibit P3 TRUE COPY OF THE NOTICE DATED 5/8/2022 ISSUED BY 2ND RESPONDENT.

Rohind v. Special Sales Officer -3

Case brief

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Rohind v. Special Sales Officer -3

Case brief

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What did the court decide?

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