Procedural compliance under cooperative society laws is crucial for valid recovery proceedings.

JUDGMENT

This writ petition has been filed challenging the recovery proceedings initiated by the respondent bank to recover amounts due under credit facilities availed by the petitioner from the respondent bank.

2. The petitioner approached this Court taking up a specific contention that no certificate as contemplated by the provisions of Section 76 of the Kerala Co-operative Societies Act , 1969 had been obtained from the Registrar of Co-operative Societies before the execution proceedings were initiated. Considering this contention and having regard to the statutory provisions, this Court on 15.01.2026 passed the following order:-

‘’Admit.

2. Issue notice by speed post to the first respondent. Notice to the second respondent is dispensed with for the time being. The learned Government Pleader accepts notice for the third and fourth respondents. 3. Heard the learned counsel for the petitioner and the learned Government Pleader.

4. Prima facie, I am not convinced that there is any merit in the contention taken by the learned counsel for the petitioner that the award has been passed by an incompetent officer. Further, the contention of the learned counsel for the petitioner that no certificate has been drawn up before the execution proceedings does not, prima facie, merit consideration, as a certificate has to be obtained only for execution of the award through a civil court and insofar as execution through an officer empowered by the Registrar is concerned, such empowerment may be through general or special order. Therefore, at present, I am not inclined to stay the further proceedings against the petitioner.

Post on 02.02.2026.’’

3. Learned counsel appearing for the respondent bank submits that if the petitioner were to pay Rs.10,00,000/- towards the loan liability on or before 31.03.2026, the petitioner can be permitted to clear the balance liability in instalments. It is also submitted that the outstanding amount, as on 26.02.2026, is Rs.68,99,674/- (Rupees Sixty eight lakhs ninety nine thousand six hundred and seventy four only).

4. Today when the matter is taken up for consideration, it is the submission of the learned counsel appearing for the petitioner that the petitioner may be permitted to clear the liability in instalments and all other contentions are not pressed. It is submitted that the petitioner is willing to remit a substantial amount towards the loan liability immediately.

5. 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 instalments provided a substantial amount is paid on or before 31.03.2026.

6. Accordingly, there will be a direction to the respondent bank to accept repayment of the entire outstanding amount of Rs.68,99,674/- (Rupees Sixty eight lakhs ninety nine thousand six hundred and seventy four only) along with accrued interest, costs and bank charges from the petitioner in the following manner:

(i) The petitioner shall pay a sum of Rs.10,00,000/- (Rupees Ten lakhs only) on or before 31.03.2026;

(ii) The balance outstanding amount of Rs.58,99,674/- (Rupees Fifty eight lakhs ninety nine thousand six hundred and seventy four only) shall be repaid in twelve equated monthly instalments along with any accrued interest, costs and charges;

(iii) The first instalment shall be paid on or before 30.04.2026 and the subsequent instalments shall be paid on or before the last working day of the succeeding months;

(iv) In the event of default of any one instalment, the respondent bank shall be entitled to proceed in accordance with the law;

(v) In order to enable the petitioner to repay the entire amounts as above, all coe