The court allowed the petitioner to repay a defaulted loan in installments, emphasizing debtor protection under cooperative society regulations.

J U D G M E N T

Petitioner availed credit facilities from the second respondent bank.

On default being committed proceedings have been 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. During the course of hearing, petitioner has confined the relief to an opportunity for repaying the outstanding amount in installments.

3. It is submitted on behalf of the respondent bank that the petitioner committed default in repayment and the outstanding amount is Rs.15,23,577/- (Rupees Fifteen lakh Twenty Three Thousand Five Hundred and Seventy Seven only) as on today. 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 installments.

4. Having regard to the 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 eighteen(18) installments.

5. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.15,23,577/- (Rupees Fifteen lakh Twenty Three Thousand Five Hundred and Seventy Seven only) along with any accrued interest, cost and bank charges from the petitioner in the following manner:

(i) The petitioner shall pay the outstanding amount of Rs.15,23,577/- (Rupees Fifteen lakh Twenty Three Thousand Five Hundred and Seventy Seven only) together with any accrued interest, cost and bank charges in eighteen(18) equated monthly installments;

(ii) The first installment shall be paid on or before 27.02.2026.

The subsequent installments shall be paid on or before the last working day of the succeeding months;

(iii) In the event of default of any one installment, the respondent bank shall be entitled to proceed 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 disposal of the writ petition will not prevent the petitioner from approaching the bank for any One Time Settlement (OTS) scheme, and if such an application is filed, the same shall be considered by the competent authority of the respondent bank and a decision shall be taken on the eligibility of the petitioner to have his loan accounts settled in terms of the provisions contained in the OTS scheme. Ordered accordingly. If the petitioner is granted OTS, he shall be governed by the terms of OTS and not by the direction issued in this judgment. If the petitioner fails to abide by the terms of OTS that may be granted to him at the discretion of the competent authority, the Bank is entitled to continue with the recovery proceedings.

Sd/-