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2026 Supreme(Online)(Ker) 1243
IN THE HIGH COURT OF KERALA AT ERNAKULAM
GOPINATH P., J
ANU MOHAN K.B – Appellant
Versus
DEVIKULAM TALUK CO-OPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK LTD. – Respondent
WP(C) NO. 37556 OF 2025
For the Appellants/Petitioners: SRI.PEEYUS A.KOTTAM, SHRI.ELDHOSE SABU
For the Respondents: SHRI.P.CHANDY JOSEPH
Court allows repayment of loan default in installments, balancing lender rights against borrower's ability.
Headnote:This case involves the petitioner who defaulted on three loans, prompting actions under the Kerala Co-operative Societies Act, 1969. The court granted an opportunity to repay the outstanding amount of Rs. 13,99,271 in twelve monthly installments. The court concluded to keep coercive measures in abeyance to facilitate repayment.
| Table of Content |
|---|
| 1. loan default leading to legal proceedings. (Para 1) |
| 2. counsel arguments regarding repayment conditions. (Para 2 , 3) |
| 3. court permits installment repayment and conditions set for compliance. (Para 4 , 5) |
JUDGMENT
The petitioner availed three loans from the respondent bank. On default being committed, proceedings were initiated against the petitioner under the provisions of the Kerala Co-operative Societies Act , 1969, prompting the petitioner to approach this court by filing the above writ petition.
2. The learned counsel appearing for the petitioner would submit that the petitioner may be permitted to clear the entire liability in installments.
3. The learned counsel for the respondent Bank submits that this is the second round of litigation at the instance of the petitioner and the earlier writ petition filed by the petitioner was disposed of on 24.05.2024 granting 2o monthly instalments to the petitioner to clear the outstanding liability. It is submitted that the petitioner paid approximately Rs.2,80,000/- pursuant to the directions issued by this court in W.P. (C)No.42823/2023 and has now paid a further amount of Rs.2,00,000/- pursuant to the interim order dated 22.10.2025 in this writ petition. It is submitted that though the petitioner has not made out any case for the grant of any further relief from this court, purely as a matter of indulgence, the Bank is willing to accept repayment of the entire liability in 12 (twelve) equal monthly instalments. It is submitted that the outstanding liability as on today (13.01.2026) is Rs.13,99,271/-. It is submitted that no further indulgence can be shown to the petitioner.
4. Having heard the learned counsel for the petitioner and the learned counsel appearing for the respondent bank and having regard to the facts and circumstances of the case and the submissions made as recorded above, I am of the view that the petitioner can be granted an opportunity to repay the outstanding amount in twelve (12) equal monthly instalments.
5. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire amount of Rs.13,99,271/- along with interest, bank charges and costs from the petitioners on the following conditions:
(i) The outstanding amount of Rs.13,99,271/- together with any accrued interest, bank charges and costs shall be repaid in twelve (12) equated monthly instalments;
(ii) The first instalment shall be paid on or before 30-01-2026 and subsequent instalments shall be paid on or before the last working day of every succeeding month;
(iii) In the event of default of any one instalment, the respondent bank shall be entitled to proceed with recovery in accordance with the law;
(iv) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.
The writ petition is disposed of as above.
Sd/-
