The court established the principle of equitable treatment for depositors in financial distress of cooperative banks.

JUDGMENT

Dated this the 12^th day of August, 2024 The petitioners are persons who have made Fixed Deposit and Savings Bank Deposit with the 4^th respondent- Bank. Though the Fixed Deposits have matured, the amounts have not been disbursed to the petitioners. In the circumstances, the petitioners seek to direct the respondents to immediately release the amounts lying in the petitioners' Fixed Deposits and Savings Bank Accounts with interest accrued thereon to the petitioners expeditiously within a specific time which may be fixed by this Court.

2. It is evident from the pleadings and arguments raised at the bar that the Bank is facing acute financial difficulties and is not in a position to honour all the demands for refund of Fixed Deposits in lump sum. Similarly situated persons approached this Court filing W.P.(C) No.13926 of 2023 and this Court directed the respondents to prepare a list of priority for disbursement/refund of Fixed Deposits. This Court directed that the disbursal of amount shall commence immediately after the lists are prepared as directed above and subject to the availability of funds with the Mavelikkara Taluk Co-operative Bank limited.

Following the said judgment, this writ petition is also disposed of directing respondents 3 to 6 to include the Fixed Deposits of the petitioners also in the priority list as per the norms followed. The benefit of the judgment in W.P.(C) No.13926 of 2023 shall be made available to the petitioners in this writ petition also.