Allowed

Jenet J v. the Secretary, Paravur Service Co-Operative Bank Ltd.

Kerala HC14 Feb 2024WP(C)/446/2023

Case brief

AI extract

What is this about?

In this writ petition, the High Court directed a cooperative bank to allow two sibling petitioners to clear outstanding loan dues in ten monthly installments without summons for any two months of default, keeping coercive proceedings in abeyance during the period.

What did the court decide?

Directions to pay outstanding loan dues in ten monthly instalments pending the issuance of the bank's statement; coercive proceedings to be stayed subject to timely compliance.

Jenet J Vs the Secretary, Paravur Service… — 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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THEHONOURABLEMR.JUSTICERAJAVIJAYARAGHAVANV

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WEDNESDAY,THE14THDAYOFFEBRUARY2024/25THMAGHA,1945

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WP(C)NO.446OF2023

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PETITIONERS:

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1JENETJ,AGED29YEARS,D/OJOYHENRY,
JASEENTHADALE,KAVILA,ENCHAKKAL,
SAKTHIKULANGARAPO,KOLLAM(DIST),PIN-691581

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2JENSONJ,AGED28YEARS,S/OJOYHENRY
JASEENTHADALE,KAVILA,ENCHAKKAL,
SAKTHIKULANGARAPO,KOLLAM(DIST),
PIN-691581

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BYADVM.RAJESH

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RESPONDENT:

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THESECRETARY,
PARAVURSERVICECO-OPERATIVEBANKLTD
PARAVURPO,KOLLAM(DIST),PIN-691301
BYADVS.
ARJUNRAGHAVAN

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SRI.TRHARIKUMAR,SCFORPARAVURSERVICE
CO-OPERATIVEBANK

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THISWRITPETITION(CIVIL)HAVINGCOMEUPFORADMISSION
ON14.02.2024,THECOURTONTHESAMEDAYDELIVEREDTHE
FOLLOWING:

W.P.C 446 OF 2023

JUDGMENT

The petitioners involved in this case are siblings who separately obtained loans from the respondent bank, utilizing title deeds as collateral. It is argued that the petitioners were actively involved in various overseas businesses. However, due to an economic recession, they suffered substantial losses, resulting in delayed remittances. Consequently, the bank initiated proceedings before the Arbitration Court, leading to the issuance of Exts P1 and P2 awards, permitting the bank to recover the outstanding amounts. The petitioners assert that they have already approached the bank, requesting an opportunity to settle the outstanding debts, but their plea has not been considered. In the light of these circumstances, the petitioners have approached this Court seeking appropriate directives.

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A counter affidavit has been filed by the respondents. It is stated that the closure amount of the 1st petitioner’s loan account is Rs. 17,68,843/- and that of the 2nd petitioner is Rs.33,28,630/- as of 7.2.2024. It is submitted that the bank is not averse to granting the petitioners an opportunity to clear the outstanding. However, he submits that not more than eight installments be granted.

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W.P.C 446 OF 2023

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Upon careful consideration of the submissions made by both parties, it is evident that the 1st petitioner owes in excess of Rs.17 lakhs and the 2nd petitioner owes in excess of Rs.33 lakhs. The respondents, very fairly, have agreed to permit the petitioners to settle these debts through a limited number of installments. As a measure of last resort, I am inclined to issue directions to facilitate the petitioners in discharging their financial obligations to the 1^st respondent. This approach is deemed necessary to provide a structured pathway for the petitioners to clear off their monetary liabilities in a manageable manner.

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Resultantly, this writ petition is ordered, and the following directions are issued:

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(i) The petitioners shall approach the respondent with a request to inform them of the details of the outstanding amount together with interest and other charges due from them in respect of each loan account. If such a request is made within two weeks from the date of receipt of a copy of this judgment, the respondent shall forthwith issue a statement in writing detailing the amounts due in respect of both the accounts.

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(ii) On receipt of such a statement, the petitioners shall pay the amounts shown therein in ten

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W.P.C 446 OF 2023

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(10) equal monthly installments commencing from 15.3.2024 and continue to pay the same on every successive month thereafter until the entire loan is wiped off.

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(iii) If the amounts are diligently paid in terms of the directions above, coercive proceedings initiated against them by the respondent for the realization of the amount shall be kept in abeyance.

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(iv) It is made clear that if the petitioners commit default of any two installments, they will lose the benefit of this judgment, and the concerned respondents will be free to continue the recovery proceedings against them from the stage at which they presently stand and recover the entire amount along with interest and other charges.

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(v) It is further made clear that no application for an extension of time will be entertained.

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Sd/-

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RAJA VIJAYARAGHAVAN V JUDGE

IAP

W.P.C 446 OF 2023

APPENDIX OF WP(C) 446/2023

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PETITIONERS’EXHIBITS:

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ExhibitP1THETRUECOPYOFTHEAWARDDATED19.10.2022INARC
NO.2321/2021

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ExhibitP2THETRUECOPYOFTHEAWARDDATED19.10.2022INARC
NO.2322/2021

Jenet J v. the Secretary, Paravur Service Co-Operative Bank Ltd.

Case brief

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Jenet J v. the Secretary, Paravur Service Co-Operative Bank Ltd.

Case brief

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