Back
2026 Supreme(Online)(Ker) 13382
IN THE HIGH COURT OF KERALA AT ERNAKULAM
GOPINATH P., J
JAYAKUMAR M P – Appellant
Versus
EDAKKATTUVAYAL SERVICE COOPERATIVE BANK (NO 389) – Respondent
WP(C) NO. 1900 OF 2026
For the Appellants/Petitioners: SMT.LATHA ANAND, SRI.K.R.PRAMOTH KUMAR, SRI.S.VISHNU, SRI.RISHI RAJEEV MENON, SRI.SARATH K. NAIR
For the Respondents: SHRI.P.C.SASIDHARAN, SMT. SILPA N.P
Borrowers are entitled to repay the outstanding loan in instalments despite initial defaults, emphasizing a fair approach under cooperative society laws.
Headnote:The judgment addresses the provisions of the Kerala Co-operative Societies Act, 1969, regarding loan repayment processes. The petitioners, a couple, defaulted on a loan, prompting the case. The Court concluded that the borrowers could repay an outstanding amount through 16 instalments after acknowledging their request for an opportunity to repay, despite the respondent’s previously initiated recovery proceedings. The core issue was centered on the repayment terms of the loan. The Court reasoned that granting instalments serves justice while balancing creditor's rights. The final order directs the respondent bank to accept the repayment of Rs.24,73,296/- in specified instalments, and all coercive measures against the petitioners were stayed pending repayment.
| Table of Content |
|---|
| 1. petitioners are borrowers and request repayment terms. (Para 1 , 2) |
| 2. outstanding loan amount and defaults discussed. (Para 3) |
| 3. court allows repayment in instalments. (Para 4) |
| 4. court's order on repayment and staying coercive actions. (Para 5) |
JUDGMENT
The 2nd petitioner is the borrower, and the
1st petitioner, who is the husband of the 2nd petitioner, is the guarantor 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 15-02-2026, is Rs.24,73,296/-. 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. 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 16 instalments.
5. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.24,73,296/- 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.24,73,296/- together with any accrued interest, costs and bank charges in
16 equated monthly instalments;
ii. The first instalment shall be paid on or before 19-03-2026. The subsequent instalments shall be paid on or before the
19th 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/-
