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2023 Supreme(Online)(KER) 4081
HIGH COURT OF KERALA
GOPINATH P, J
SURYA PRAKASH M.B – Appellant
Versus
KERALA STATE CO-OPERATIVE BANK(KERALA BANK) – Respondent
WP(C) 36695/2022
K.S.BINOY, KRISHNA RAJENDRAN, N.RAGHURAJ-SC
Borrowers are entitled to seek structured repayment plans under cooperative society laws, which the court upheld in this case.
Headnote:
Repayment - Cooperative Societies - Kerala Co-operative Societies Act, 1969 - Sections related to recovery proceedings and repayment obligations are highlighted, interpreting the right of borrowers to seek relief in repayment terms, which influenced the court’s decision to allow structured repayment.
Fact of the Case:
The petitioner challenged recovery proceedings initiated under the Kerala Co-operative Societies Act, claiming a default on a cash credit facility of Rs.5,18,000/- and sought the opportunity to repay in instalments.
Finding of the Court:
The court found merit in allowing the petitioner to repay the outstanding loan in instalments given the circumstances and the submission by the respondent bank to accept such repayment.
Issues: Whether the petitioner could be granted an opportunity to repay the outstanding amount of the cash credit facility in instalments.
Ratio Decidendi: The court emphasized the principle of allowing structured repayments under the provisions of the Kerala Co-operative Societies Act, indicating that borrowers should have a fair chance for repayment.
Final Decision: The court directed the respondent bank to accept repayments in ten equal monthly instalments.
J U D G M E N T
Petitioner has approached this Court challenging proceedings initiated under the Kerala Co-operative Societies Act, 1969 for recovery of amounts due in respect of a cash credit facility availed from the respondent bank.
2. During the course of hearing, the petitioner has confined the relief to an opportunity of repaying the amounts due in instalments. 3. It was submitted on behalf of the respondent bank that the petitioner committed default in repayment of the above loan. It is submitted that the total liability in respect of cash credit facility, which cannot be regularised, is Rs.5,18,000/- as on 18-01-2023. It is further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the aforesaid amount in limited instalments.
4. I have heard the learned counsel for the petitioner as well as the learned Standing Counsel for the respondent.
5. Having regard to the circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the outstanding amount in respect of the cash credit facility in ten (10) equal monthly instalments.
6. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.5,18,000/- in respect of the credit facility, along with bank charges from the petitioner on the following conditions:
(i) The outstanding amount of Rs.5,18,000/- in respect of the cash credit facility together with any accrued interest/costs shall be repaid in ten (10) equated monthly instalments.
(ii) The first instalment shall be paid on or before 10-02-2023 and subsequent instalments shall be paid on or before 10th day of every succeeding month.
(iii) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with law.
(iv) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.
The writ petition is disposed of as above.
