The court reinforced the principle that aggrieved parties must be allowed to contest recovery proceedings and seek timely investigations into related allegations.

JUDGMENT

Dated this the 18th day of January, 2023 The 1st petitioner is a Self Help Group formed for promoting the welfare activities of women belonging to Ezhava community and is attached to the Sree Narayana Dharma Paripalana Yogam (SNDP). The 2nd petitioner is the Convenor and the 3rd petitioner, the Joint Convenor of the Self Help Group. The 1st petitioner availed a loan of Rs.3 lakhs from the Union Bank of India. As directed by the SNDP Union, the loan amount was repaid to the Union on the understanding that the amount would be remitted by the Union to the Bank. Contrary to the understanding, the amount paid by the 1st petitioner and other Self Help Groups were embezzled and no amount was remitted to the bank. This resulted in the bank initiating recovery measures against the petitioners. The petitioners allege that the title deeds given to the bank as security for the loan was misused by availing another loan. On being alerted about the fraud, the petitioners filed Ext.P2 complaint, based on which Crime is registered against the office bearers of the SNDP union as well as the officers of the Union Bank of India. This writ petition is filed, aggrieved by continuance of the recovery measures.

2. Heard learned Counsel for the petitioners and the learned Standing Counsel for the bank.

3. It is pointed out that, writ petitions filed by similarly placed Self Help Groups seeking identical reliefs were disposed of by Ext.R3 (A) judgment.

4. Having carefully gone through Ext.R3(A)

judgment, I find that the grievance highlighted by the petitioners have been substantially dealt with and the following directions issued; “1. The petitioners are free to challenge the recovery proceedings against them, in accordance to law, by availing the alternative remedy. To facilitate the petitioners to avail the alternative remedy, revenue recovery proceedings initiated against the petitioners in these cases are stayed for a period of three months from today. During the above period, the petitioners can do the needful to avail the alternative remedy.

2. The petitioners in these cases can approach the jurisdictional Station House Officer concerned with a complaint narrating their grievance, if no criminal case is registered in connection with their grievance. If such a complaint is received the Station House Officer concerned will do the needful, in accordance to law.

3. The petitioners can approach the State Police Chief with a representation to investigate the criminal cases registered in connection with these cases by constituting a Special Team and if such a representation is received, the State Police Chief will do the needful, in accordance to law.

4. If any of the cases registered based on the complaint of the petitioners are reached the stage of trial, the aggrieved party/prosecution witnesses in those cases can approach the jurisdictional Court with a petition for an early disposal of those cases and if such a petition is received, the jurisdictional Court will try to expedite the trial and will conclude the trial, as expeditiously as possible.”

6. Learned Counsel for the petitioners submitted that the crimes are now being investigated by the Crime Branch, based on the direction in Ext.P4 judgment. It is also submitted that the time limit of three months granted in Ext.R3(A) judgment will not be sufficient for instituting a civil suit.

The writ petition is accordingly disposed of, with the following directions;

i. The petitioners are free to challenge the recovery proceedings against them, in accordance to law, by availing the alternative remedy. To facilitate the petitioners to avail the alternative remedy, the revenue recovery proceedings initiated at the instance of the Bank is stayed for a period of six months from today.

ii. The petitioners can approach the jurisdictional Station House Officer or the Crime Branch officer in charge of the investigation for expediting the investigation. The needful shall thereupon be done by the officer concern