Court directs consideration of representation under BUDS Act for co-operative society deposit recovery amid financial distress.

J U D G M E N T

The petitioners have substantial deposits with the 2^nd respondent society. According to the petitioners though the deposits have matured, the 2^nd respondent is not paying the amounts due to the petitioners citing financial difficulties.

2. Despite service of notice, there is no appearance for the respondents 2 and 4 though the 3rdrespondent has entered appearance through counsel. The learned counsel appearing for the 3rdrespondent submits that the 2ndrespondent is now not in a position to repay the amounts payable to the petitioners on account of financial difficulties. It is submitted that proceedings have been initiated under the provisions of the Kerala Co- operative Societies Act, 1969, for imposing surcharge against persons who were responsible for causing loss to the society. It is also submitted that though civil suit is not maintainable, certain depositors have approached the civil court and those suits are also pending. 3. The learned counsel for the petitioners would submit that the petitioners have preferred Ext.P19 representation before the 5threspondent seeking initiation of proceedings under the Banning of Unregulated Deposits Schemes Act, 2009 (hereinafter referred to as 'the BUDS Act') and the same may be directed to be considered. It is submitted that unless the assets of the society and the persons who have caused loss to the society are attached, the petitioners will loose their hard earned money. It is submitted that total amount of deposits maintained by the petitioners is Rs.1,10,00,000/-.

4. Having heard the learned counsel for the petitioners and the learned Government Pleader, I am of the view that this writ petition can be disposed of directing the 5^th respondent to consider Ext.P19 and decide as to whether any action is warranted under the provisions of the BUDS Act.

It is made clear that the competent authority will consider Ext.P19 independently, keeping in mind the statutory provisions of the BUDS Act. Since Ext.P19 is a request to the 5^th respondent to exercise its statutory powers, [if warranted] no personal hearing need be extended to the petitioners. All contentions are left open to be adjudicated at a later stage.

The writ petition is disposed of as above.