Court allows installment repayment for loans while putting coercive actions on hold, emphasizing fair debt recovery practices.

JUDGMENT

The petitioner availed two loans from the respondent Society. The property of the petitioner is mortgaged to secure the repayment of the loans. The mortgaged property is stated to be the residential house of the petitioner. On default being committed, the Society initiated proceedings under the provisions of Section 69 of the Kerala Co-operative Societies Act , 1969 and obtained separate Awards in respect of both the loans availed by the petitioner. On the Award being put to execution before the Munsiff’s Court, Irinjalakkuda [as E.P. No.1907 of 2024], the petitioner is before this Court, seeking the following reliefs:-

‘ ’’i. issue a writ of mandamus directing the respondent bank to pay the amount due in installments;

ii. issue a writ of mandamus or any other writ directing the respondents from taking any coercive proceedings against the petitioner’s pursuant to Exhibit P3 & P4 notice;

iii. issue a writ of mandamus or any other writ directing the respondents to regularize the loan.’’

2. Learned counsel appearing for the petitioner submits that though the sale of the property of the petitioner was notified, no sale has taken place till today. Learned counsel appearing for the petitioner would further submit that the petitioner is only seeking the liberty of repaying the entire amount in some instalments.

3. Despite service of notice, there is no appearance for the respondent Society.

4. Having heard the learned counsel appearing for the petitioner and considering the limited nature of relief sought for by the petitioner, I am of the view that this writ petition can be disposed of, permitting the petitioner to clear the entire liability with the respondent Society in 24 equal monthly instalments.

Accordingly, there will be a direction to the respondent Society to accept repayment of the entire outstanding amount along with accrued interest, costs and bank charges from the petitioner in the following manner:

(i) The entire outstanding amount shall be repaid in twenty four equated monthly instalments along with any accrued interest, costs and charges;

(ii) The first instalment shall be paid on or before 20.12.2025 and the subsequent instalments shall be paid on or before the 20^th day of the succeeding months;

(iii) In the event of default of any one instalment, the respondent Society shall be entitled to proceed in accordance with the law;

(iv) In order to enable the petitioner to repay the entire amounts as above, all coercive proceedings shall be kept in abeyance.

Since there is no appearance for the respondent Society, the Registry shall communicate the copy of this judgment to the respondent Society as also to the Munsiff’s Court, Irinjalakkuda to be included in the records of E.P. No.1907 of 2024, pending before that court.

The writ petition is disposed of as above.