Disposed

P.N.Sasankan v. the Special Sale Officer

Kerala HC22 Jul 2024WP(C)/9425/2024

Case brief

AI extract

What is this about?

A writ petition challenging coercive auction notices issued by a Co-operative Bank for loan default. The Court disposed of the petition by granting time to the borrowers to clear dues, directing an initial payment of Rs. 3 lakhs followed by monthly instalments, subject to continued compliance.

What did the court decide?

Petitioners directed to pay Rs. 3 lakhs within one month and balance in 15 monthly instalments. Coercive proceedings deferred on compliance.

P.N.Sasankan Vs the Special Sale Officer — 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 22^ND DAY OF JULY 2024 / 31ST ASHADHA, 1946

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WP(C) NO. 9425 OF 2024

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PETITIONERS:

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1 P.N.SASANKAN AGED 62 YEARS, S/O NARAYANAN, PULIPPARA THARAYIL HOUSE, ELANTHOOR P.O., PATHANAMTHITTA DISTRICT, PIN – 689643.

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2 SUDHA SASANKAN

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AGED 50 YEARS, W/O SASANKAN, PULIPPARA THARAYIL HOUSE, ELANTHOOR P.O., PATHANAMTHITTA DISTRICT, PIN – 689643.

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BY ADVS. M.T.SURESHKUMAR MANJUSHA K SREELAKSHMI SABU

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RESPONDENTS:

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1 THE SPECIAL SALE OFFICER OMALLOOR SCB GROUP, OFFICE OF THE ASSISTANT REGISTRAR(GENERAL), KOZHENCHERY PATHANAMTHITTA, PIN – 689641.

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2 THE SECRETARY

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ELANTHOOR SERVICE CO-OPERATIVE BANK NO.460, ELANTHUR VILLAGE, KOZHENCHERRY TALUK, PATHANAMTHITTA, PIN – 689643.

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BY ADVS. JACOB P. ALEX JOSEPH P.ALEX MANU SANKAR P. AMAL AMIR ALI

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W.P.(C)No.9425 of 2024

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C)No.9425 of 2024

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J U D G M E N T

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Dated this the 22^nd day of July, 2024

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The petitioners have approached this Court aggrieved by

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the coercive proceedings for recovery of financial advance made by the Elanthoor Service Co-operative Bank to the petitioners, invoking the provisions of the Kerala Co-operative Societies Act, 1969 .

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The Bank paid ₹9.5 lakhs to the petitioners as loan in the year 2016. The petitioners state that though the petitioners made remittances promptly during the initial repayment period of the financial advance, they could not pay the instalments promptly later due to financial constraints. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioners.

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W.P.(C)No.9425 of 2024

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Though the petitioners requested the Bank to

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permit the petitioners to repay the overdue amounts in easy monthly instalments, the Bank authorities were not yielding.

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The authorities, instead, started coercive proceedings, invoking the provisions of the Kerala Co-operative Societies Act, 1969 and issued Exts.P3 and P4 notices.

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The petitioners state that they are 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 petitioners, they 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 petitioners. On behalf of the respondents, it is submitted that the loan was given to the petitioners in the year 2016. The

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W.P.(C)No.9425 of 2024

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petitioners committed default in repaying the loan.

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The Bank repeatedly reminded the petitioners 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.P3 and P4 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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The Standing Counsel, however, submitted that if the petitioners are 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 petitioners to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from

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W.P.(C)No.9425 of 2024

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the petitioners as on 22.07.2024 is ₹18,18,091/-.

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

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The specific case of the petitioners is that the petitioners have been making the repayment and maintaining the loan account initially. The default in repayment occurred lately due to reasons beyond the control of the petitioners. The petitioners have 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

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inclined to dispose of the writ petition giving a short and reasonable time to the petitioners 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 petitioners shall remit an amount of

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₹3 lakhs within a period of one month from

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W.P.(C)No.9425 of 2024

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today.

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(ii) The petitioners shall remit the balance outstanding amount in subsequent consecutive 15 equal monthly instalments thereafter, along with accruing interest and other Bank charges, if any.

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(iii) 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.

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

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Sd/-

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N. NAGARESH JUDGE

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ams

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W.P.(C)No.9425 of 2024

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APPENDIX OF WP(C) 9425/2024

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PETITIONER EXHIBITS

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Exhibit P1 TRUE COPY OF THE DEMAND NOTICE ISSUED TO THE 1ST PETITIONER DATED 14-6-2022 Exhibit P2 TRUE COPY OF THE DEMAND NOTICE ISSUED TO THE 2ND PETITIONER DATED 14-6-2022 Exhibit P3 TRUE COPY OF AUCTION SALE NOTICE DATED 17-1-2024 ISSUED BY THE 1ST RESPONDENT TO THE 1ST PETITIONER Exhibit P4 TRUE COPY OF AUCTION SALE NOTICE DATED 17-1-2024 ISSUED BY THE 1ST RESPONDENT TO THE 2ND PETITIONER

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Exhibit P5 TRUE COPY OF THE DETAILS OF THE FIXED DEPOSIT IN THE NAME OF THE 2ND PETITIONER WITH THE RESPONDENT BANK DATED 22.12.2023

P.N.Sasankan v. the Special Sale Officer

Case brief

What is this about?

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P.N.Sasankan v. the Special Sale Officer

Case brief

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