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2026 Supreme(Online)(Ker) 1119
IN THE HIGH COURT OF KERALA AT ERNAKULAM
GOPINATH P., J
SHAJEELA AGED 45 YEARS – Appellant
Versus
THE MAYYANADU REGIONAL COOPERATIVE BANK LTD – Respondent
WP(C) NO. 118 OF 2025
For the Appellants/Petitioners: P.PRIJITH
For the Respondents: V.JAYAPRADEEP, O.A.NURIYA, D.S.LOKANATHAN, ALAN PRIYADARSHI DEV, REVATHY P. MANOHARAN, CHANDANA VIJAYAN, C.S.SHEEJA (GP)
Equitable relief to debtors is permissible under the Kerala Co-operative Societies Act, allowing repayment in instalments despite defaults.
Headnote:This judgment involves the interpretation of the Kerala Co-operative Societies Act, 1969, in relation to loan defaults. The petitioners approached the court seeking an opportunity to repay the outstanding loan amount of Rs.18,07,584/-. The court found that allowing repayment in six instalments was reasonable given the circumstances. The court framed the issue as whether to permit instalment repayment despite defaults. The court reasoned that the principles of equity justified the petitioners being allowed to repay in instalments, while also noting the bank's willingness to accept such a proposal. The court ultimately directed the bank to permit repayment in six equitable monthly instalments with conditions regarding defaults and coercive actions.
| Table of Content |
|---|
| 1. nature of the parties and loan default (Para 1 , 2) |
| 2. details of the outstanding loan and petitioners' willingness to repay (Para 3 , 4) |
| 3. decision to allow repayment in instalments (Para 5) |
| 4. final order on the repayment terms and conditions (Para 6) |
JUDGMENT
The 3rd petitioner is the borrower, and petitioners
1 and 2 are the guarantors 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, as on 13-01-2026, is Rs.18,07,584/-. 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. The learned counsel for the petitioners submits that the petitioners are willing to repay the entire outstanding amount in six instalments.
5. 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 six (06) instalments.
6. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.18,07,584/- 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.18,07,584/- together with any accrued interest, costs and bank charges in six (06) equated monthly instalments;
ii. The first instalment shall be paid on or before 16-02-2026. The subsequent instalments shall be paid on or before the
16th 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.
Sd/-
