DAMA SESHADRI NAIDU, J.

1. The petitioner, a Co-operative Bank, through Ext. P1, sanctioned a loan of Rs. 6,00,000/- to the second respondent in 2006 to be repaid in ten years. While sanctioning the loan, the petitioner bank entered into Ext. P2 agreement with the second respondent, the borrower. Exhibit P1 sanction order, inter alia, provides for resolution of disputes through arbitration proceedings as have been contemplated in Section 69 of the Kerala Co-operative Societies Act (the 'Act').

2. Complaining that the petitioner Bank has periodically raised the rate of interest and has been charging exorbitant interest, the second respondent approached the learned Ombudsman, the first respondent, and invited Exhibit P7 order, which is assailed in the present writ petition.

3. Since the facts are not in dispute, I confine my discussion to the issue of the first respondent's jurisdiction, which is questioned by the petitioner. My discussion, therefore, obviates any reference to the merits of the matter.

4. Initially, at the time when the loan was granted, the rate of interest was fixed at 7.25%. In the course of time, it had been periodically raised to 13% by 2011. The petitione