Disputes with co-operative banks under the Kerala Co-operative Societies Act require proper avenues for adjudication.

J U D G M E N T

The petitioners have availed credit facilities from the Thodupuzha Primary Co-operative Agricultural Rural Development Bank Ltd. According to the petitioners, the respondent bank has initiated recovery proceedings alleging that there are amounts due from the petitioners in respect of the loans availed by the petitioners. It is submitted by the learned counsel for the petitioners that without providing the details of the loan account and without giving credit to the amounts paid by the petitioners, the respondent bank is proceeding with the recovery under the provisions of the Kerala State Co- operative (Agricultural and Rural Development Banks) Act, 1984 (hereinafter referred to as 'the 1984 Act'). It is pointed out that 1984 Act does not provide for any adjudication and thus the petitioners is not in a position to have the disputes adjudicated before any authority. It is submitted that the request of the petitioners for supply of documents has also not been considered favourably by the respondent bank.

2. Having heard the learned counsel for the petitioners, the learned counsel for the respondent bank and the learned Government Pleader appearing the the official respondents, I am of the view that though the 1^st respondent bank is a bank to which the provisions of the the 1984 Act applies it continues to be a society registered under the provisions of the Kerala Co- operative Societies Act, 1969 and all the provisions of the 1969 Act will continue to apply unless either specifically or by necessary implications such provisions are excluded by the provisions of the 1984 Act. In that view of the matter, the bar against a civil suit as contained in Section 100 of the 1969 Act will apply and the petitioners is not in a position to have any dispute with the 1^st respondent adjudicated by resorting to proceedings before a civil court. The Supreme Court inMardia Chemicals v. Union of India ; (2004) 4 SCC 311 has upheld provisions that permit banks and financial institutions to take action by themselves without intervention of court. However, it has been held that where the provisions permitting do not contemplate any adjudication such provisions would be arbitrary and unsustainable.

3. In the light of the fact that the 1^st respondent bank continues to be a society registered under the 1969 Act and in the light of the fact that Section 69 of the 1969 Act is not specifically excluded by the provisions of the 1984 Act, I am of the view that the petitioners can be invoke the provisions of of the 1969 Act. However, since no specific period of limitation has been provided in schedule-III of 1969 Act for the adjudication of any application that may be filed by the petitioners, it is necessary to fix a time limit within which the petitioners will initiate proceedings under of the 1969 Act for having any dispute with the 1^st respondent bank adjudicated under the provisions of of the 1969 Act. Accordingly, this writ petition will stand disposed of directing that if the petitioners were to file an application before the jurisdictional Assistant Registrar invoking the provisions of of the 1969 Act to have any dispute with the 1^st respondent bank adjudicated within a period of one month from the date of receipt of a certified copy of this judgment, such petition shall be heard and disposed of by the competent authority without undue delay and it will also be open to the petitioners to seek appropriate interim relief and also to seek the production of any documents by filing appropriate applications before the competent authority.

Writ petition is disposed of accordingly.