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2025 Supreme(Online)(Ker) 57600
IN THE HIGH COURT OF KERALA AT ERNAKULAM
GOPINATH P., J
SOMAN V.S – Appellant
Versus
THENHIPALAM CO-OPERATIVE RURAL BANK LTD – Respondent
WP(C) NO. 41792 OF 2025
For the Appellants/Petitioners: SRI.HILAL BABU, SRI.AMAL S., SRI.BALASUBRAMANYAN, SMT.PRIYANKA SUSAN RAJU
For the Respondents: ADV. P.C.SASIDHARAN
Court allows installment repayment for loan default under specified conditions.
Headnote:This judgment deals with a writ petition filed by the petitioners seeking relief concerning a loan default from the respondent bank under the Kerala Co-operative Societies Act, 1969, which initiated recovery proceedings. The court finds that the petitioners may repay the outstanding amount in 18 installments. The key issue was framed as to whether the petitioners should be granted an opportunity for repayment, with the court ultimately deciding to allow it under specified conditions. The petitioners are directed to repay the outstanding amount of Rs.21,38,455/- in 18 equated monthly installments.
| Table of Content |
|---|
| 1. loan default and guarantor's role. (Para 1) |
| 2. petitioners' request for installment repayment. (Para 2 , 3) |
| 3. court's condition for repayment installments. (Para 4) |
| 4. judgment on repayment schedule. (Para 5) |
JUDGMENT
The 1st petitioner is the borrower, and the
2nd petitioner, who is the mother of the 1st petitioner, is the guarantor in respect of a loan availed from the 1st respondent bank. On default being committed proceedings have been initiated against the petitioners under the provisions of the Kerala Co-operative Societies Act , 1969, prompting the petitioners to approach this Court by filing the above writ petition.
2. During the course of hearing, petitioners have confined the relief to an opportunity for repaying the outstanding amount in instalments.
3. It is submitted on behalf of the respondent bank that the petitioners committed default in repayment and the outstanding amount is Rs.21,38,455/- as on 16-12-2025. It is further submitted that though proceedings for recovery have been initiated, as a matter of indulgence, the respondent bank is willing to accept repayment of the outstanding amount in limited instalments.
4. Having regard to the circumstances of the case and the submissions made as recorded above, I am of the view that the petitioners can be granted an opportunity to repay the outstanding amount in 18 instalments.
5. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.21,38,455/- along with any accrued interest, costs and bank charges from the petitioners in the following manner:
i. The petitioners shall pay the outstanding amount of Rs.21,38,455/- together with any accrued interest, costs and bank charges in
18 equated monthly instalments;
ii. The first instalment shall be paid on or before 07-01-2026. The subsequent instalments shall be paid on or before the
7th day of the succeeding months;
iii.In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with the law;
iv.In order to enable the petitioners to repay the entire amounts, all coercive proceedings shall be kept in abeyance.
The writ petition is disposed of as above.
