IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN MONDAY, THE 11TH JULY 2011 / 20TH ASHADHA 1933 WP(C).No. 5950 of 2011(P) -------------------------------------- PETITIONER(S): ----------------------- KOLLAM WOOD INDUSTRIAL CO-OP.SOCIETY LTD.NO.4094,KOLLAM-10,KERALA REP.BY ITS SECRETARY BY ADV. SRI.D.SOMASUNDARAM RESPONDENT(S): --------------------------- 1. GENERAL MANAGER DISTRICT INDUSTRIES CENTRE, KOLLAM-691001 2. VIJAYA BANK,KOLLAM BRANCH, REP.BY ITS SENIOR MANAGER-691 001 *ADDL.R3 IS IMPLEADED *ADDL.R3: KOLLURVILA SERVICE CO-OPERATIVE BANK LTD.NO.Q214,VADAKKEVILA.P.O., KOLLAM-691 010, REPRESENTED BY ITS SECRETARY. * IS IMPLEADED AS ADDL.R3 AS PER ORDER DATED 21/6/2011 IN IA NO.9489/11 R1 BY SR GOVERNMENT PLEADER SRI.C.K.GOVINDAN R2 BY ADV. SRI.K.ANAND SMT.LATHA KRISHNAN ADDL.R3 BY ADV. SRI.D.SREEKUMAR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11/07/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C)NO.5950/2011 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE RELEVANT PORTION OF BYE-LAWS SHOWING ITS NATURE OF ITS ACTIVITIES. P2 COPY OF THE RESOLUTION NO.7 DATED 21/11/2010. P3 COPY OF THE MINUTES OF THE GENERAL BODY MEETING ON 21/11/2010. P4 COPY OF THE LETTER GIVEN BY THE SECRETARY OF THE BANK. P5 COPY OF THE LETTER DATED 26/10/2010. P6 COPY OF THE COMMUNICATION OF 2ND RESPONDENT. P7 COPY OF THE NOTICE DATED 10/02/2011 2ND RESPONDENT. P8 COPY OF THE AGREEMENT DATED 9/5/2011 EXECUTED BETWEEN THE PETITIONER AND OTHERS. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts S. SIRI JAGAN, J. ------------------------------------------------- W.P.(C)No. 5950 OF 2011 ------------------------------------------------- DATED THIS THE 11th DAY OF JULY, 2011 J U D G M E N T The petitioner is a co-operative society. They availed of a loan from the 2nd respondent Bank. They committed default in repayment of the same. The Bank initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 which is under challenge in this writ petition. The contention of the petitioner is that the additional 3rd respondent has agreed to purchase the property belonging to the petitioner and they are prepared to pay the amount due to the 2nd respondent directly. They want time to complete the procedural formalities required under the Kerala Co-operative Societies Act which applicable to the petitioner and the additional 3rd respondent. 2. This is opposed by the counsel for the 2nd respondent Bank. It is pointed out that the proceedings started as early in 2009 and the petitioner has not paid any amounts since then. Taking into account the fact that both the petitioner as well as the additional 3rd respondent are Co-operative Societies, I W.P.(C)No.5950/2011 -2- dispose of the writ petition with a direction to the petitioner to see that the amount due from the petitioner is paid to the 2nd respondent either by the petitioner or the 3rd respondent as expeditiously as possible at any rate within two months from today. If the petitioner pays the amount within that time further proceedings under the Act shall be dropped. However, if the petitioner or the 3rd respondent does not pay the said amount within the stipulated time as above, the 2nd respondent Bank may continue the proceedings as now initiated without having to issue any fresh notice or proceedings in that regard. Sd/- S. SIRI JAGAN, JUDGE. AMG True copy P.A to Judge