IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.P.RAY FRIDAY, THE 11TH MARCH 2011 / 20TH PHALGUNA 1932 WA.No. 352 of 2011() -------------------- AGAINST THE JUDGEMENT/ORDER IN WPC.15627/2010 Dated 04/02/2011 .................... APPELLANT(S): / PETITIONERS -------------- 1. K.V.GHEEVARGHESE ,KURANGATTU HOUSE EAST MARADY, MUVATTUPUZHA, ERNAKULAM DISTRICT. 2. SARAKUTTY GHEEVARGHESE, KURANGATTU HOUSE,EAST MARADY, MUVATTUPUZHA, ERNAKULAM DISTRICT. BY ADV. SMT.MARY BENJEMIN RESPONDENT(S): / RESPONDENTS --------------- 1. THE STAE OF KERALA REPRESENTED BY ITS SECRETARY TO GOVERNMENT, CO-OPERATIVE DEPARTMENT GOVERNMENT SECRETARIAT, TRIVANDRUM. 2. THE ERNAKULAM DISTRICT CO-OPERATIVE BANK, REPRESENTED BY ITS MANAGER, PIRAVOM BRANCH PIRAVOM, ERNAKULAM DISTRICT, PIN - 686 664. 3. THE BANKING OMBUDSMAN, RESERVE BANK OF INDIA BUILDING, TRIVANDRUM 695 033. 4. THE ASSISTANT GENERAL MANGER, DEPARTMENT OF SUPERVISION, NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT, PUNNEN ROAD TRIVANDRUM - 695 039. MR.P.V.SURENDRA NATH THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 11/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & BHABANI PRASAD RAY, JJ. ---------------------------------- W.A.No.352 of 2011 --------------------------------- Dated, this the 11th day of March, 2011 J U D G M E N T Ramachandran Nair, J. This Writ Appeal is filed against the judgment of the learned Single Judge declining to interfere with the appellants' claim for further amount from the respondent Bank towards interest on long term deposits made by the petitioners with the Bank. The learned Single Judge held that the dispute can be settled through arbitration proceedings to be initiated under Section 69 of the Kerala Co- operative Societies Act. The finding of the learned Single Judge does not warrant any interference because the appellants being creditors are entitled to settle the dispute in arbitration proceedings under Section 69(1)(h) of the Kerala Co-operative Societies Act. However, the learned counsel appearing for the appellants submitted that RBI guidelines were not communicated to the appellants. The controversy is whether the fluctuation in interest periodically applicable and applied by the Bank either based on the direction of W.A.No.352/2011 -2- the RBI or through the directions issued by the Registrar of Co- operative Societies or Government or through decisions taken by the Managing Committee, should be applicable to long term deposits made by the appellants. While we uphold the judgment of the learned Single Judge directing the appellants to go for settlement through arbitration, we feel prior to an arbitration the matter could be considered by the Managing Committee in their meeting in which the appellants also should be given a hearing for the Managing Committee to arrive at a settlement if at all possible, and on failure necessarily the appellants have to pursue remedy before the Arbitration Court. Therefore, this Writ Appeal is disposed of directing the Managing Committee to consider the matter. (C.N.RAMACHANDRAN NAIR, JUDGE) (BHABANI PRASAD RAY, JUDGE) jg