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2025 Supreme(Online)(KER) 13341
HIGH COURT OF KERALA
Murali Purushothaman, J
SATHIANATHAN – Appellant
Versus
PANTHEERANKAVU SERVICE CO-OPERATIVE BANK LTD. – Respondent
WP(C) 5764/2025
For the Appellants/Petitioners: P.C.MUHAMMED NOUSHIQ
For the Respondents: R.SUDHISH, TENISON THOMAS, M.MANJU, SRI. V.K SUNIL – SR. GP
The court allows repayment of loan dues in installments while preserving the Society's right to enforce recovery upon default.
Headnote:In this case, the petitioner sought to set aside the Award issued under the Kerala Co-operative Societies Act, 1969, related to loan repayment default. The court found it reasonable to allow repayment in installments but warned that default could lead to recovery proceedings. The primary determination involved allowing the petitioner to pay Rs. 1,12,15,988 in eighteen equal monthly installments, commencing from 02.05.2025; failure to comply would lead to enforcement by the Society.
| Table of Content |
|---|
| 1. loan default led to arbitration proceedings under cooperative law. (Para 1) |
| 2. counsel for both sides proposed installment payments for loan recovery. (Para 2 , 3) |
| 3. court directed repayment in installments and warned of potential recovery. (Para 4) |
JUDGMENT
The loan availed by the petitioner from the
1st respondent Society fell in arrears on account of default in payment of installments and the Society initiated arbitration proceedings under the Kerala Co-operative Societies Act , 1969. Ext.P1 is the Award. Pursuant to the Award, execution proceedings have been initiated by the Society vide Ext.P2. The petitioner has filed this writ petition seeking to set aside Ext.P1 Award and permit him to pay the outstanding amount in fifty monthly installments.
2. Sri.R.Sudhish, the learned counsel for the Society submits that the writ petition is not maintainable and the petitioner has to prefer an original petition under Article 227 of the Constitution of India. However, it is submitted that, the Society is willing to show indulgence to the petitioner by permitting him to pay the outstanding amount in reasonable installments. It is further submitted that, as on 25.03.2025, an amount of Rs.1,12,15,988/- is outstanding in the loan account of the petitioner.
3. The learned counsel for the petitioner submits that the petitioner may be permitted to pay the outstanding amount in eighteen equal monthly installments.
4. In the facts and circumstances of the case, there will be a direction to the petitioner to pay the outstanding amount of Rs.1,12,15,988/- in eighteen equal monthly installments commencing from 02.05.2025 along with accrued interest and applicable charges. If the petitioner defaults payment of any of the installments, it will be open to the Society to proceed against him for recovery of the amount, in accordance with law. To enable the petitioner to repay the amount in installments as above, all coercive proceedings against him pursuant to Ext.P2 shall stand deferred.
The writ petition is disposed of.
Sd/-
MURALI PURUSHOTHAMAN JUDGE SPR APPENDIX PETITIONER ’ S EXHIBIT S:-
EXHIBIT P1 TRUE COPY OF THE AWARD PASSED BY THE 2ND RESPONDENT IN ARC 222/18 DATED 31.01.2018.
EXHIBIT P2 TRUE COPY OF THE EXECUTION PETITION DATED
23.02.2023 IN E.P. NO. 88 OF 2023 ON THE FILES OF SUB COURT 1A, KOZHIKODE.
EXHIBIT P3 A TRUE COPY OF THE ORDER OF THE KERALA STATE CO-OPERATIVE REGISTRAR DATED
02.01.2025.
RESPONDEN T S EXHIBIT S: NIL.
