Disposed

Thomas.N.G. v. Taliparamba Primary Co-Operative Agricultural and Rural Development Bank

Kerala HC12 Jul 2024WP(C)/36785/2023

Case brief

AI extract

What is this about?

In a writ petition challenging coercive proceedings for recovery of a defaulted agricultural loan, the Court disposed of the petition by granting the petitioner a short and reasonable time to clear the overdue amount in instalments, providing protection against immediate sale of assets and continuing coercive measures pending compliance.

What did the court decide?

Petitioner granted short time to remit overdue amount in four monthly instalments; coercive proceedings deferred pending payment; liberty to petition for regularisation.

Thomas.N.G. Vs Taliparamba Primary Co-Operative… — Execution and Attachment | 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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FRIDAY, THE 12TH DAY OF JULY 2024 / 21ST ASHADHA, 1946
WP(C) NO. 36785 OF 2023

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PETITIONER:

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THOMAS.N.G.
AGED 56 YEARS, S/O.GEORGE, NADACKAL HOUSE,
VANCHIYAM, CHANDHANAKKAMPARA.P.O,
PAYYAVOOR AMSOM, KANNUR, PIN – 670 633.

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BY ADVS.

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V.T.MADHAVANUNNI
V.A.SATHEESH

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RESPONDENTS:

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1TALIPARAMBA PRIMARY CO-OPERATIVE AGRICULTURAL
AND RURAL DEVELOPMENT BANK
TALIPARAMBA.P.O, KANNUR DISTRICT,
REPRESENTED BY ITS SECRETARY,
PIN – 670 141.

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2SPECIAL SALE OFFICER
PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK GROUP, OFFICE OF THE JOINT
REGISTRAR OF CO-OPERATIVE SOCIETIES (G),
CIVIL STATION, KANNUR DISTRICT,
PIN – 670 002.

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BY ADV
M.SASINDRAN

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY
HEARD ON 12.07.2024, THE COURT ON THE SAME DAY DELIVERED
THE FOLLOWING:

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W.P.(C) No.36785 of 2023

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JUDGMENT

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Dated this the 12^th day of July , 2024

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The petitioner has approached this Court

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

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The Bank paid ₹3 lakhs to the petitioner as Mortgage Loan in the year 2012. 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. The repayment of loan fell into arrears later due to financial crisis. It happened due to reasons beyond the control of the petitioner.

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W.P.(C) No.36785 of 2023

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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 authorities, instead, started coercive proceedings, invoking 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 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.

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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 the respondents, it is submitted that the loan was given to the petitioner in the year 2012. The petitioner committed default in repaying the loan.

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W.P.(C) No.36785 of 2023

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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 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 is ₹9,13,163/- and the overdue amount as on 24.06.2024 is ₹33,283/-.

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

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W.P.(C) No.36785 of 2023

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: 5 :

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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 overdue amount of 33,283/- in four 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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W.P.(C) No.36785 of 2023

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

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(iii) The petitioner shall also pay current EMIs along with the aforesaid payments.

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

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(v) After remitting the amounts as directed above, the petitioner may approach the Bank for regualrisation of the loan account.

Sd/-

N. NAGARESH

JUDGE

AMR

W.P.(C) No.36785 of 2023

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APPENDIX OF WP(C) 36785/2023

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PETITIONER’S EXHIBIT

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Exhibit P1

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A TRUE COPY OF THE SALE PROCLAMATION
DATED 17.10.2023 ISSUED BY RESPONDENT
NO.2 TO THE PETITIONER.

Thomas.N.G. v. Taliparamba Primary Co-Operative Agricultural and Rural Development Bank

Case brief

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What did the court decide?

Thomas.N.G. v. Taliparamba Primary Co-Operative Agricultural and Rural Development Bank

Case brief

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