IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT:- THE HONOURABLE THE CHIEF JUSTICE MR.H.L.DATTU & THE HONOURABLE MR. JUSTICE A.K.BASHEER WEDNESDAY, THE 17TH SEPTEMBER 2008 / 26TH BHADRA 1930 W.A.No.1870 of 2008 ----------------------------------- AGAINST THE ORDER IN W.P.(C).NO.24153/2008, DATED 11/08/2008 .................... APPELLANT: PETITIONER IN THE W.P.(C):- -------------------------------------------------------------- R.RAJKUMAR, HOUSE NO.151, VILAYIL VEEDU, THEKKECHERY, KANJAVALLI P.O., KOLLAM. BY ADV. SRI.C.UNNIKRISHNAN (KOLLAM) SRI.S.HARIKRISHNAN RESPONDENTS: RESPONDENTS IN THE W.P.(C):- ----------------------------------------------------------------------- 1. THE QUILON CO-OPERATIVE URBAN BANK LTD., REPRESENTED BY ITS GENERAL MANAGER, KOLLAM. 2. SECRETARY, THE QUILON CO-OPERATIVE URBAN BANK LTD. NO.960, KOLLAM. 3. ASSISTANT REGISTRAR, THE QUILON CO-OPERATIVE URBAN BANK LTD., KOLLAM. 4. AUTHORISED OFFICER, THE KOLLAM CO-OPERATIVE URBAN BANK LTD. NO.960, HEAD OFFICE, Y.M.C.A. ROAD, KOLLAM. BY ADVOCATE SMT.D.P.RENU. THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 17/09/2008, ALONG WITH W.P.(C).NO.24153 OF 2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:- H.L.Dattu, C.J. & A.K.Basheer, J. ---------------------------------------------- W.A.No.1870 of 2008 & W.P.(C).No.24153 of 2008-A ---------------------------------------------- Dated, this the 17th day of September, 2008 JUDGMENT H.L.Dattu,C.J. Since the issues involved in the Writ Appeal and also in the writ petition are interlinked, we have called for the writ petition papers also. (2) We have heard Sri.C.Unnikrishnan, learned counsel for the appellant/petitioner and Smt.D.P.Renu, learned counsel for the respondent-Bank. (3) Petitioner in the writ petition has availed a loan of Rupees One Lakh from the respondent/Co-operative Bank for commencing a Dairy Farm. He has committed default in paying the amounts due to the Co-operative Bank. Therefore, the Bank has initiated proceedings, by filing a dispute before an Arbitrator. The Arbitrator has passed an award and, in that, has directed the petitioner to pay a sum of Rs.1,14,619/- to the Bank. (4) Since the petitioner did not pay the amounts as directed in the award, the Bank has taken effective steps to realize the amounts due from the petitioner pursuant to the award passed by the Arbitrator. It is at that stage, the petitioner was before this Court, inter alia, calling in question the action of the WA.1870/2008 & WP(C).24153/2008 - 2 - respondent-Bank in initiating coercive steps for realization of the amounts due under the award. (5) The primary contention of the petitioner in the writ petition was, that, in view of the Agricultural Debt Waiver and Debt Relief Scheme, 2008, the Co-operative Bank is expected to waive the principal amount as well as the interest. Petitioner has further stated that he has already filed a representation (Exhibit P8) before the respondent-Bank, requesting them to waive the principal amount as well as the interest payable thereon and the Bank has not taken any steps to consider that representation and pass appropriate orders. It is his further grievance, that, during the pendency of that representation, the Bank has initiated coercive steps to recover the amounts due from the petitioner pursuant to an award passed by the Arbitrator. (6) The learned Single Judge, while entertaining the writ petition, has directed the petitioner to deposit a sum of Rs.70,000/- within a particular time. Aggrieved by the interim order so passed, the petitioner has presented the Writ Appeal. (7) The primary contention of the appellant/petitioner before us is that in view of the Agricultural Debt Waiver and Debt Relief Scheme, 2008 floated by the Central Government, the appellant is entitled for waiver of the principal amount borrowed and also the interest thereon and it is his further case that he has already filed a representation before the respondent-Bank for waiver of the WA.1870/2008 & WP(C).24153/2008 - 3 - principal amount and also the interest and without disposing of that representation, the Bank ought not to have initiated any proceedings, much less coercive proceedings to recover the amount due from the appellant/petitioner. (8) In our view, in view of the Scheme floated by the Central Government, it is expected of the respondent-Bank to have considered the representation filed by the petitioner and after passing an appropriate order, should have initiated proceedings to recover the amount due from the appellant/petitioner. That has not been done in the instant case. Therefore, in our opinion, the prayers made by the petitioner in the writ petition requires to be granted and, accordingly, we pass the following: Order (i) The Writ Appeal is disposed of. (ii) The writ petition is also disposed of. (iii) A direction is issued to the respondent/Co-operative Bank to consider Exhibit P8 representation said to have been filed by the appellant/petitioner, in accordance with law and in the light of the Agricultural Debt Waiver and Debt Relief Scheme, 2008, floated by the Central Government, as expeditiously as possible, at any rate, within three weeks from today, after affording an opportunity of hearing to the appellant/petitioner. (iv) Till such time, Exhibits P5, P6 and P7 are kept in abeyance. WA.1870/2008 & WP(C).24153/2008 - 4 - (v) The Bank shall supply a copy of the order that may be passed by the Bank on the representation filed by the appellant/petitioner within a week's time from the date of passing of such order. Ordered accordingly. H.L.Dattu Chief Justice A.K.Basheer vku/- Judge