Full Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH THURSDAY, THE 30TH DAY OF NOVEMBER 2023 / 9TH AGRAHAYANA, 1945 WP(C) NO. 34377 OF 2023 PETITIONER: VIJAYAN AGED 48 YEARS S/O PUNCHAIKKAL KALI, ENKAKKAD PO, VADAKKENCHERRY, THRISSUR, PIN - 680589 BY ADVS. K.R.ARUN KRISHNAN SANAL C.S DEEPA K.RADHAKRISHNAN JISSMON A KURIAKOSE RESPONDENTS: THE THALAPPILY TALUK PRIMARY CO- OPERATIVE, AGRICULTURAL AND RURAL DEVELOPMENT BANK, NO 1354 THE THALAPPILY TALUK PRIMARY CO- OPERATIVE, AGRICULTURAL AND RURAL DEVELOPMENT BANK NO 1354, WADAKANCHERY, THRISSUR, REPRESENTED BY ITS SECRETARY, PIN - 680585 BY ADV DILIP J. AKKARA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
JUDGMENT
Dated this the 30th day of November, 2023 The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Thalappilly Taluk Primary Co-operative, Agricultural and Rural Development Bank Limited to the petitioner, invoking the provisions of the Kerala Co-operative Societies Act, 1969.
2. The Bank paid ₹2.85 lakhs to the mother of the
petitioner as Nabard Loan in the year 2017 and the petitioner is the guarantor therein. 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 installments promptly later due to unprecedented circumstances. The repayment of loan fell into arrears. It happened due to reasons beyond the control of the petitioner.
3. Though the petitioner requested the Bank to permit
the petitioner to repay the overdue amounts in easy monthly installments, 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 Ext.P1 notice.
4. 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 installments. If the respondent is 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.
5. Standing Counsel entered appearance on behalf of
the Bank and denied all the statements made by the petitioner. On behalf of the respondent, it is submitted that the loan was given to the petitioner’s mother in the year 2017. The petitioner committed default in repaying the loan.
6. 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 Kerala Co-operative Societies Act, 1969. The impugned Ext.P1 notice was issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.
7. The Standing Counsel, however, submitted that if
the petitioner is ready and willing to make a substantial payment soon and remit the total outstanding 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 as on 01.11.2023 is ₹4,12,000/-
8. I have heard the counsel for the petitioner and the Standing Counsel representing the Bank.
9. 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.
10. 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.
11. The writ petition is therefore disposed of with the following directions:
(i) The petitioner shall remit the outstanding amount of ₹4,12,000/- in 12 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 29.12.2023.
(ii) If the petitioner commits default in making payments as directed above, the respondent will be at liberty to continue with the 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 hmh APPENDIX OF WP(C) 34377/2023 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE DEMAND NOTICE, B 8145 DATED 13/06/2023 ISSUED BY THE RESPONDENT DEMANDING PAYMENT OF RS. 3,59,000/- (THREE LAKH FIFTY NINE THOUSAND RUPEES ONLY) Exhibit P2 TRUE COPY OF THE REQUEST DATED THE PETITIONER