Delay in filing for relief under cooperative societies law may undermine a petitioner's right to challenge ex parte awards.

J U D G M E N T

The petitioner suffered Exts.P4 and P5 awards in a proceedings initiated by the 1^st respondent society under Section 69 of the Kerala Co- operative Societies Act, 1969. On the awards being put to execution, the petitioner has approached this court by filing the above writ petition. It is the case of the petitioner that he was ex parte in the proceedings before the Arbitrator and therefore he has filed Exts.P6 and P7 applications to set aside ex parte awards. It is submitted that the petitioner will be satisfied with a direction to the Arbitrator to consider Exts.P6 and P7 in accordance with the law. It is submitted that the recovery proceedings may be kept in abeyance till Exts.P6 and P7 are decided by the Arbitrator.

2. The learned counsel for the respondent society submits that on 14-

08-2025 this court had granted an interim order subject to the condition that if the petitioner deposit a sum of Rs.3,00,000/- towards the loan liability within two months, no coercive proceedings shall be initiated against the petitioner. It is submitted that no amount has been remitted by the petitioner. It is submitted that the present liability of the petitioner is approximately Rs.23 lakhs. It is submitted that there is absolutely no merit in the claim made by the petitioner as the petitioner was fully aware of the arbitration proceedings and had in fact appeared before the Arbitrator.

3. Having heard the learned counsel for the petitioner and the learned counsel for the respondent bank, I am of the opinion that the petitioner is not entitled to any relief in this writ petition. Exhibits P4 and P5 awards are dated 11-08-2023. Exhibits P6 and P7 applications for setting aside the ex parte awards have been filed in the month of August 2025, nearly 2 years after the awards were passed by the Arbitrator. The petitioner has also not demonstrated bona fides while complying with the condition imposed by this court while granting interim order dated 14-08-2025. Even today the learned counsel for the petitioner submits that the petitioner is not in a position to make any substantial payment towards the loan liability. Therefore this writ petition deserves to be dismissed. However, taking into consideration the submission of the learned counsel for the petitioner that the petitioner will take earnest efforts to pay an amount of Rs.3,00,000/- directed to be paid as per the interim order dated 14-08-2025 within a period of two weeks from today, it is directed that further coercive steps shall be deferred for a period of two weeks. If the petitioner pays an amount of Rs.3,00,000/- within the aforesaid period of two weeks from today, the 2^nd respondent shall take up Exts.P6 and P7 applications for setting aside ex parte award and shall consider the same in accordance with the law. However, if the petitioner fails to remit Rs.3,00,000/- within the aforesaid period, it will be open to the 1^st respondent society to continue with the proceedings initiated against the petitioner. It is further clarified that if the amount of Rs.3,00,000/- is paid by the petitioner within the aforesaid time, the execution of the award shall be kept in abeyance till orders are passed on Exts.P6 and P7 as directed above.

Writ petition is disposed of, accordingly.