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2026 Supreme(Online)(Ker) 1125
IN THE HIGH COURT OF KERALA AT ERNAKULAM
GOPINATH P., J
SHAJEELA – Appellant
Versus
THE MAYYANADU REGIONAL COOPERATIVE BANK LTD – Respondent
WP(C) NO. 45324 OF 2024
For the Appellants/Petitioners: SRI.MUHAMMED KHAISE J., SRI.P.PRIJITH, SMT.SANDRA ANIL
For the Respondents: SRI.V.JAYAPRADEEP, SMT.O.A.NURIYA, SRI.D.S.LOKANATHAN, SRI.ALAN PRIYADARSHI DEV, SMT.REVATHY P. MANOHARAN, SMT.CHANDANA VIJAYAN, SMT.C.S SHEEJA (GP)
Court allows installment repayment for loan default under cooperative society laws.
Headnote:Statute Analysis: Under provisions of the Kerala Co-operative Societies Act, 1969, the petitioners faced proceedings for loan default. Facts of the Case: The petitioners approach the Court seeking a chance to repay an outstanding amount of Rs. 45,42,813/- in instalments.
Findings of Court:
The Court allows repayment in six instalments addressing the circumstances of the case.
Issues: The Court framed the query of granting the petitioners a chance to repay.
Ratio Decidendi: The Court reasoned that installment repayment is a feasible solution given the bank's willingness to accommodate.
Result: The respondent bank is directed to accept payment in six instalments with certain conditions.
| Table of Content |
|---|
| 1. petitioners seek installment repayment. (Para 1 , 2) |
| 2. respondent agrees to accommodate repayment. (Para 3 , 4) |
| 3. court permits repayment in installments. (Para 5 , 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.45,42,813/-. 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.45,42,813/- 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.45,42,813/- 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/-
