The provisions of the Kerala Revenue Recovery Act are applicable for the recovery of amounts due under the awards obtained by a cooperative bank without prior notification.

JUDGMENT This writ petition has been filed, inter alia, seeking a direction that the amounts in fixed deposits maintained by the petitioners in the Thrikkunnapuzha Kizhakkekara Service Cooperative Bank Ltd. (hereinafter referred to as 'the Bank') be paid immediately. According to the petitioners, the amounts due to them are not being paid even though the deposits have matured.

2. The learned counsel appearing for the respondent Bank submits that the Bank is in dire financial straits and, for this reason, has been unable to repay the fixed deposits. It is also submitted that unless expeditious steps are taken to execute the awards obtained by the Bank, in proceedings under Section 69 of the Kerala Co-operative Societies Act , 1969 (hereinafter referred to as ‘the 1969 Act’), the bank will not be in a position to repay the depositors.

3. I have heard the learned Government Pleader also.

4. It is clear from the submissions of the learned counsel for the respondent Bank that unless the awards obtained by the Bank in proceedings under Section 69 of the 1969 Act are executed and amounts due to the Bank are recovered without undue delay, the bank will not be in a position to repay depositors like the petitioners herein. In Kunjumohammed M. M. v. State of Kerala, 2025 KHC 1328 , this Court held:-

“......On a perusal of the provisions contained in Section 76 of the 1969 Act, I am of the view that the said provision clearly provides for initiation of recovery proceedings under the Kerala Revenue Recovery Act , 1968 (hereinafter referred to as 'the 1968 Act') and the Rules made thereunder where a requisition is made as contemplated by the provisions of (b) within the time specified in the said provision. The 1968 Act is an Act to consolidate the laws relating to the recovery of arrears of public revenue in the State of Kerala. By virtue of the provisions contained in Section 71 of the 1968 Act, the provisions of the 1968 Act can be extended to any institution, by notification in the Government Gazette. However, in so far as the orders/decisions or awards to which the provisions of sub-section (b) of of the 1969 Act apply a notification as contemplated by the provisions of Section 71 of the 1968 Act is clearly not necessary as the provisions of (b) of the 1969 Act itself makes the provisions of 1968 Act applicable for the recovery of amounts due under any award made under Section 70 of the 1969 Act. Thus, it is declared that by virtue of the provisions contained in sub-section (b) of of the 1969 Act the provisions of the 1968 Act will be applicable for the purpose of recovery of amounts due under the awards obtained under Section 70 of the 1969 Act without any notification being issued in terms of the provisions contained in Section 71 of the 1968 Act. The provisions of the 1968 Act provide a comparatively quicker mode of recovery than the other modes of recovery contemplated by the provisions of of the 1969 Act.”

In light of the findings in Kunjumohammed M. M. (supra), I am of the view that the proper course to be adopted in this case would be to permit the respondent bank to initiate proceedings as contemplated by the directions issued in Kunjumohammed M. M. (supra) under the provisions of the Kerala Revenue Recovery Act , 1968 to recover amounts due in terms of awards obtained by the Bank in proceedings under Section 69 of the 1969 Act and attempt to discharge its liabilities under Fixed Depoits to persons like the petitioners after drawing up a priority list strictly in terms of the date of maturity of the fixed deposits. The contentions taken by the petitioners are left open, and their right to approach this Court again if their deposits are not discharged within a reasonable time will stand expressly reserved.

Writ petition is ordered accordingly.

Sd/-