IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN FRIDAY, THE 20TH MARCH 2009 / 29TH PHALGUNA 1930 WP(C).No. 2367 of 2009(F) ------------------------- PETITIONER(S): --------------- 1. ROSIL RAPHAEL, W/O. RAPHAEL T. JOSEPH, THEKKAKKARA HOUSE, KECHERI 680 501. 2. RAPHAEL T. JOSEPH,THEKKAKKARA HOUSE, PROPRIETOR, RENIL AUTO GARAGE, KECHERI 680 501. BY ADV. SRI.C.E.UNNIKRISHNAN RESPONDENT(S): --------------- 1. THE AUTHORISED OFFICER, TRICHUR DISTRICT CO-OPERATIVE BANK LTD., CO-OPERATIVE CENTENARY BUILDING, TUDA ROAD, THIRUVAMBADY, THRISSUR 680 022. 2. TRICHUR DISTICT CO-OPERATIVE BANK LTD., NO. 60, CO-OPERATIVE CENTENARY BUILDING, TUDA ROAD, THIRUVAMBADY, THRISSUR 680 022. REPRESENTED BY ITS GENERAL MANAGER. 3. THRISSUR DISTRICT SCHEDULED CASTE/SCHEDU LED TRIBED MOTOR TRANSPORT CO-OPERATIVE SOCIETY LTD., NO.R 740, AYYANTHOLE, THRISSUR -3. (PRIYADARSHINI TRANSPORTS) REPRESENTED BY ITS SECRETARY. 4. JOINT REGISTRAR (GENERAL) OF CO-OPERATIVE SOCIETIES THRISSUR. ADV. SRI.P.C.SASIDHARAN - R1 AND R2 SRI.DILIP J. AKKARA FOR R3 R4 BY GOVT PLEADER SRI I V PRAMOD THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 20/03/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: THOTTATHIL B RADHAKRISHNAN, J ........................................... WP(C).NO. 2367 OF 2009 ............................................ DATED THIS THE 20TH DAY OF MARCH, 2009 JUDGMENT The third respondent is a Co-operative Society for the welfare of the members of Scheduled Castes and Scheduled Tribes. Obviously, therefore majority of the members of its committee are nominated by the Government. The intention for such nomination is to take care of such societies which are ultimately aimed at augmenting the economic and social status of the members of Scheduled Castes and Scheduled Tribes. But the facts of the case in hand demonstrate total lack of bureaucratic commitment in running such establishment. When that institution is a debtor to the extent of more than a Crore, even the Secretary in charge who is an elected person, he being the Vice President, and not a nominee of the Government, says in his affidavit dated 7.2.2009 that due to bureaucratic red tappism even the move to sell off some of the non-functional buses has been rendered futile. It is obviously shown that there is none in the establishment or the bureaucracy intending to safeguard the WPC 2367/2009 2 interest of the third respondent. 2. With the aforesaid scenario regarding the functioning of the third respondent, the second respondent, District Co- operative Bank, itself has a first charge over the assets of the third respondent. 3. The petitioners herein are debtors of the second respondent, bank. According to them, the loan in question was availed for the purpose of carrying out certain works for the third respondent, Society and around Rs.31,00,000/- plus interest is due from the third respondent to the petitioners. While the petitioners attempted to point out that even the loan was availed with the guarantee being extended by third respondent at least for a portion of the entire outstandings and the bank officials and Directors knew about the nature of the transactions, the second respondent bank cannot be tied down to any principle of estoppel to suffer an order at the hands of this court interdicting the enforcement of the recovery proceedings under the SARFAESI Act. However, the second respondent would consider leniently any request of the petitioners for One Time Settlement of the transaction having regard to the peculiar circumstances of the WPC 2367/2009 3 case. It is so ordered. 4. Taking into consideration the plight of the third respondent, the fourth respondent is ordered to immediately look into the matter of the affairs of the third respondent and if necessary, issue directions to ensure that the third respondent continues to sustain not merely as an establishment of government officers and other bureaucrats, but would go by the Constitutional advice and work for the upliftment of the Scheduled Castes and Scheduled Tribes, for whose benefit the third respondent society is constituted. The Joint Registrar will do the needful in this line within a period of two months from the date of receipt of a copy of this judgment. The third respondent is directed to place a copy of this judgment before the fourth respondent. THOTTATHIL B RADHAKRISHNAN, JUDGE lgk/23/3