Bench granted time to petitioners to repay a term loan advance in installments to halt coercive recovery proceedings issued by Kerala Bank, while resuming actions upon default.
Remit outstanding loan amount via fifteen equal monthly installments; defer coercive proceedings if paid; allow coercive proceedings if default occurs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 17TH DAY OF JULY 2024 / 26TH ASHADHA, 1946
WP(C) NO. 3112 OF 2024
PETITIONERS:
BY ADV P.A.VIBIN
RESPONDENTS:
BY ADVS. SRI.MABLE C KURIAN, SR.GOVERNMENT PLEADER SRI.P.C.SASIDHARAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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JUDGMENT
Dated this the 17th day of Jul y, 2024
The petitioners have approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Kerala Bank (Kerala State Co-operative Bank) to the petitioners, invoking the provisions of the Kerala Co-operative Societies Act, 1969.
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permit the petitioners to repay the outstanding 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 and issued Exts.P1 and P2 notices.
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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 and P2 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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(i) The petitioners shall remit the outstanding amount of ₹4,04,115/- in 15 consecutive and equal monthly installments along with accruing interest and other Bank charges, if any. First of such installments shall be paid on or before 17.08.2024.
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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.
(iii) If the petitioners pay the amount as directed above, any coercive proceedings against the petitioners will stand deferred.
Sd/-
N. NAGARESH JUDGE
SR
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APPENDIX OF WP(C) 3112/2024
PETITIONERS' EXHIBITS:
Exhibit P1 A TRUE COPY OF THE REVENUE RECOVERY DEMAND NOTICE RRC NO.2023/15983/08 DATED 21.12.2023 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONERS. Exhibit P2 A TRUE COPY OF THE REVENUE RECOVERY DEMAND NOTICE PRIOR TO ATTACHMENT RRC NO.2023/15983/08 DATED 22.12.2023 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONERS. Exhibit P3 A TRUE COPY OF THE RECEIPT ISSUED BY THE 3RD RESPONDENT.
2 issues framed by the court
Whether a writ petition challenging coercive recovery proceedings under the Kerala Co-operative Societies Act can be disposed of by granting the petitioners time to repay the loan.
Whether coercive proceedings initiated by the bank against defaulting borrowers can be deferred upon payment of outstanding dues in installments.
Shafeerali Ki
SulaiKha
Kerala Bank Kerala State Co-Operative Bank Vadanappally Branch
Deputy Tahsildar RR
The Village Officer
N.nagareesh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
