Partly allowed

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

Kerala HC8 Jul 2024WP(C)/28949/2023

Case brief

AI extract

What is this about?

High Court disposed of a writ petition filed by a borrower challenging coercive proceedings initiated by a co-operative bank for recovery of loan dues. The court allowed a schedule of repayment to defer coercive actions.

What did the court decide?

Petitioner directed to remit outstanding amount of ₹5,22,546/- along with interest in 12 consecutive monthly instalments, first instalment payable by 08.08.2024. Coercive proceedings deferred upon com

Sheji G. Vs Varkala Cooperative Agricultural… — Contract and Commercial Disputes | 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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MONDAY, THE 8TH DAY OF JULY 2024 / 17TH ASHADHA, 1946

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WP(C) NO. 28949 OF 2023

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PETITIONER:

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SHEJI G.
AGED 45 YEARS
W/O LAIJU, LEKSHMI VILASAM, VILLIKKADAVU,
AYIROOR P.O., VARKALA TALUK,
THIRUVANANTHAPURAM DISTRICT – 695310

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BY ADVS.
R.RAJESH (VARKALA)
MANU RAMACHANDRAN
M.KIRANLAL
T.S.SARATH
SAMEER M NAIR
SAILAKSHMI MENON
ABHISHEK JOHNSON

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RESPONDENTS:

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1VARKALA COOPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK LTD
GOPAL BUILDING MAITHANAM,
VARKALA P.O., THIRUVANANTHAPURAM,
REPRESENTED BY ITS SECRETARY, PIN - 695141

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2 SECRETARY

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VARKALA COOPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK,
SITUATED AT GOPAL BUILDING MAITHANAM,
VARKALA P.O., THIRUVANANTHAPURAM, PIN - 695141

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WP(C) No.28949 of 2023

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3SPECIAL SALE OFFICER
VARKALA COOPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK,
SITUATED AT GOPAL BUILDING MAITHANAM,
VARKALA P.O.,
THIRUVANANTHAPURAM, PIN – 695141

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

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 08.07.2024, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:

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WP(C) No.28949 of 2023

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JUDGMENT

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Dated this the 8^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 Varkala Co-operative Agricultural and Rural Development Bank Limited to the petitioner, invoking the provisions of the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984.

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The petitioner availed six loans from the 1^st respondent-Bank in the year 2012. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, she could not pay the repayment instalments promptly later due to Covid-19 pandemic. The repayment of loans fell into arrears later. It happened due to reasons beyond the control of the petitioner.

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WP(C) No.28949 of 2023

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Though the petitioner requested the Bank to permit

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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 State Co-operative Agricultural and Rural Development Banks Act, 1984 and issued Exts.P1 to P3 notices.

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The petitioner states that she 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 Bank is permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, she 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 respondents 1 and 2, it is submitted that the loans were given to the petitioner in the year 2012.

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WP(C) No.28949 of 2023

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The petitioner committed default in repaying the loans.

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The Bank repeatedly reminded the petitioner and required her 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 State Co-operative Agricultural and Rural Development Banks Act, 1984. The impugned Exts.P1 to P3 were 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 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 ₹5,22,546/-.

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WP(C) No.28949 of 2023

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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 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 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 ₹5,22,546/- in 12

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consecutive and equal monthly instalments along with accruing interest and other Bank

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WP(C) No.28949 of 2023

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charges, if any. First of such instalments shall be paid on or before 08.08.2024.

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

Sd/-

N.NAGARESH

JUDGE

spk

WP(C) No.28949 of 2023

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APPENDIX OF WP(C) 28949/2023

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PETITIONER EXHIBITS

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Exhibit P1THE TRUE COPY OF THE DEMAND NOTICE
DATED 03.12.2022 ISSUED BY THE 2ND
RESPONDENT
Exhibit P2THE TRUE COPY OF THE DEMAND NOTICE
DATED 19.06.2023 ISSUED BY 3RD
RESPONDENT
Exhibit P3THE TRUE COPY OF THE NOTICE DATED
31.07.2023

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

Case brief

What is this about?

What did the court decide?

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

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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