A writ petition against coercive recovery of an overdue business loan from a co-operative bank. The court allowed repayment in ten equal monthly instalments, with coercion deferred if paid, resuming on default.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
MONDAY, THE 8TH DAY OF JULY 2024 / 17TH ASHADHA, 1946
WP(C) NO. 8488 OF 2023
PETITIONER:
KAMALUDHEEN, AGED 70 YEARS NOORUDEEEN, KOCHUPURACKAL, MOONAMPURATHU HOUSE, PALIKKAL P O, PALLICKAL ,THIRUVANTHAPURAM, PIN – 673634
BY ADV M.R.SASITH
RESPONDENTS:
1 SPECIAL SALES OFFICER,THE VARKALA CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD NO T 2039 VARKALA, PIN - 6951412 THE SECRETARY,THE VARKALA CO-OPERATIVE AGRICULTURAL AND RURAL
DEVELOPMENT BANK LTD NO T 2039, VARKALA – 695141
BY ADVS.
T.R.HARIKUMAR
ARJUN RAGHAVAN(K/1277/2012)
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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JUDGMENT
Dated this the 8th day of July, 2024
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.
WP(C) No.8488 of 2023
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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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WP(C) No.8488 of 2023
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 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.
(i) The petitioner shall remit the outstanding amount of ₹7,55,071/- in 10 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 08.08.2024.
(ii) If the petitioner commits single default in making payments as directed above, the Bank will be at liberty to continue with the
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coercive proceedings against the petitioner in
accordance with law.
(iii) If the petitioner makes payments as directed above, coercive proceedings, if any,
against the petitioner shall stand deferred.
Sd/-
N.NAGARESH JUDGE
spk
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WP(C) No.8488 of 2023
APPENDIX OF WP(C) 8488/2023
PETITIONER EXHIBITS
Exhibit P1TRUE COPY OF THE SALE NOTICE DATED
6/2/2023 ISSUED BY THE RESPONDENT BANK
1 issue framed by the court
Whether the petitioner could be granted instalment-based repayment time to clear overdue loan dues and defer coercive recovery proceedings by the Bank.
1 provisions across 1 enactments
KAMALUDHEEN
SPECIAL SALES OFFICER, THE VARKALA CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD NO T 2039
THE SECRETARY, THE VARKALA CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD NO T 2039
N.NAGARESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court