IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN MONDAY, THE 1ST AUGUST 2011 / 10TH SRAVANA 1933 WP(C).No. 10228 of 2011(C) ----------------------------------------- PETITIONER(S): ------------------------- ANNAMMA.P.DAVID, W/O.LATE PHILIP K.DAVID, KARMEL HOUSE, POST OFFICE JUNCTION, PUNALUR, PATHANAPURAM, KOLLAM DISTRICT. BY ADV. SRI.R.ARUN RAJ RESPONDENT(S): --------------------------- 1. KOLLAM DISTRICT CO-OPERATIVE BANK LIMITED, NO.4311, REP.BY ITS GENERAL MANAGER, HEAD OFFICE, CHINNAKKADA, KOLLAM-1. 2. THE GENERAL MANAGER, KOLLAM DISTRICT CO-OPERATIVE BANK LIMITED, NO.4311, CHINNAKKADA, KOLLAM-1. 3. SPECIAL SALE OFFICER, KOLLAM DISTRICT CO-OPERATIVE BANK LIMITED, NO.4311 CHINNAKKADA, KOLLAM-1. 4. JOINT REGISTRAR[GENERAL] OF CO-OPERATIVE SOCIETIES, KOLLAM-1. R1TO R3 BY ADV. SRI.M.K.CHANDRAMOHAN DAS,SC, KOLLAM CO-OP.BANK LIMITED. R4 BY GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01/08/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.10228/2011 C APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE SALE NOTICE ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER DTD. 12/04/2010. P2: COPY OF THE COMMUNICATION ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER DTD. 31/05/2010. P3: COPY OF THE ORDER NO.AEL 6064/2010 OF THE 4TH RESPONDENT DTD. 14/12/2010. P4: COPY OF THE COMMUNICATION DTD. 15/03/2011 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER. RESPONDENT'S ANNEXURES: ANNEX.R1(A): COPY OF THE AWARD NO.ARC NO.34/08 DTD. 25/03/2008 PASSED BY THE ARBITRATOR. ANNEX.R1()B): COPY OF THE LETTER DTD. 12/01/2011 ISSUED BY THE 4TH RESPONDENT. /TRUE COPY/ P.S.TO JUDGE Kss P.N.RAVINDRAN, J. ----------------------------------------- W.P(C).No.10228 of 2011 ----------------------------------------- Dated this the 1st August, 2011 JUDGMENT The petitioner availed loan from the first respondent bank on the security of a parcel of land, 50 cents in extent, situate in survey No.872/1/42/2 of Thenmala Village, Pathanapuram Taluk, Kollam district. When she defaulted repayment, the bank filed A.R.C.No.34 of 2008 before the Assistant Registrar of Co- operative Societies, Kollam. By Ext.R1(a) award passed on 23.5.2008 the Arbitrator permitted the first respondent to recover the sum of Rs.1,49,548/- due as on 31.3.2007 together with interest at the rate of 16% per annum on the principal sum of Rs.75,000/- from 1.4.2007. Even thereafter the petitioner did not discharge her liability. The bank thereupon took steps to execute the award. The Sale Officer of the bank thereupon issued Ext.P1 sale proclamation dated 12.4.2010 proposing to sell the security by public auction on 31.5.2010. In the auction held on 31.5.2010 10 cents of land from out of the 50 cents of land mortgaged by the petitioner as security was sold for the sum of Rs.1,94,038/-, W.P(C).No.10228 of 2011 -:2:- the total amount due as on the date of sale, namely 31.5.2010. The bank was the successful bidder in the auction. 2. After the sale was held, the Sale Officer sent Ext.P2 letter dated 31.5.2010 to the petitioner informing her that 10 cents out of the 50 cents of land mortgaged by her as security for the loan has been sold and purchased by the bank for the sum of Rs.1,94,038/- and that unless she pays the said amount together with a sum equal to 5% of the bid amount (Rs.2,03,740/- in all) within 30 days from the date of the sale, the sale will be confirmed and the property delivered over to the purchaser bank. The petitioner did not even thereafter discharge the liability. Thereupon, by Ext.P3 order dated 14.12.2010 the sale was confirmed. Though what was sold was only 10 cents out of 50 cents, in the sale confirmation order it was stated that the extent of land sold was 50 cents. That mistake was thereafter rectified by Ext.R1(b) order dated 12.1.2011 wherein the extent of the property sold was stated as 10 cents out of 50 cents. The instant writ petition was thereupon filed on 30.3.2011 challenging the sale and its confirmation and seeking a direction to the respondents to permit the petitioner to pay the award amount in W.P(C).No.10228 of 2011 -:3:- instalments and to re-convey the property to her. The writ petition proceeds on the basis that though only a portion of the security was sold, in the order confirming the sale it was stated that the entire land was sold and therefore, the sale and its confirmation are liable to be set aside. 3. When this writ petition came up for admission hearing today, learned counsel appearing for the petitioner submitted that the petitioner will pay the sum of Rs.1,00,000/- within one week from today and that she may be granted a reasonable time to pay the balance amount of Rs.1,03,740/-. The learned standing counsel for respondents 1 to 3 did not seriously oppose the said request, but submitted that in the event of the petitioner paying the sum of Rs.1,94,038/- together with a sum equal to 5% of the bid amount (Rs.9,702/-) and future interest on the sum of Rs.1,94,038/- from 1.6.2010 till the date of payment, the bank will have no objection in the sale being set aside. In such circumstances, in view of the willingness expressed by the petitioner to pay the sum of Rs.1,00,000/- within one week from today, I dispose of the writ petition with the following directions:- (i) The petitioner shall, within one week from today, deposit W.P(C).No.10228 of 2011 -:4:- the sum of Rs.1,00,000/- with the Chinnakkada Branch of the Kollam District Co-operative Bank Limited. The petitioner shall pay the balance sum of Rs.1,03,740/- in two instalments, the first instalment of Rs.50,000/- to be paid on 30th September, 2011 and the balance amount of Rs.53,740/- on or before 31st October 2011. (ii) The petitioner shall also deposit, along with the last instalment, simple interest calculated at the rate of 6% per annum on the entire sum of Rs.1,94,038/- for the period from 1.6.2010 till 31.7.2011 and on the balance sum of Rs.1,03,740/- for the period thereafter. Needless to say, after the deposit of the second instalment of Rs.50,000/-, the petitioner need pay interest only on the balance amount of Rs.53,740/- at the rate stipulated above. (iii) Upon the petitioner paying/depositing the amounts as directed above, the bank shall record full satisfaction of the award and shall move the Joint Registrar of Co-operative Societies to cancel the sale held on 31.5.2010 and the orders issued by him [Ext.P3 and Annexure R1(b)] confirming the sale. (iv) The Joint Registrar of Co-operative Societies shall thereupon issue appropriate orders cancelling the sale held on W.P(C).No.10228 of 2011 -:5:- 31.5.2010 and the orders passed by him confirming the sale. (v) It is clarified that if the petitioner does not comply with the aforesaid directions and defaults payment of any one of the instalments stipulated above, this judgment will stand recalled and the writ petition will stand dismissed. P.N.RAVINDRAN, Judge. ahg. P.N.RAVINDRAN, J. --------------------------- W.P(C).No.10228 of 2011 ---------------------------- JUDGMENT 1st August, 2011