IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN FRIDAY, THE 24TH JUNE 2011 / 3RD ASHADHA 1933 WP(C).No. 17246 of 2010(E) -------------------------- PETITIONER(S): --------------- M.R.RAMESH, S/O.LATE RAGHAVAN MUNDALIL HOUSE, PARIYARAM MURI, THOTTAKKADU VILLAGE, AND POST, CHANGANACHERRY TALUK. BY ADV. SRI.P.KURUVILLA JACOB RESPONDENT(S): --------------- 1. THE VAKATHANAM SERVICE CO-OPERATIVE BANK LTD, NO.4246 AT VAKATHANAM REPRESENTED BY ITS SECRETARY. 2. THE PRESIDENT, VAKATHANAM SERVICE CO-OPERATIVE BANK LTD, NO.4246 VAKATHANAM,VAKATHANAM POST, KOTTAYAM. 3. THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) CHANGANACHERRY. 4. THE CO-OPERATIVE TRIBUNAL, THIRUVANANTHAPURAM. 5. THE SALE OFFICER, VAKATHANAM SERVICE CO-OPERATIVE BANK NO.4246, OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL) CHANGANACHERRY. BY ADV. SRI.R.PARTHASARATHY FOR R1 &2 BY GOVT. PLEADER SRI.P.M.MANOJ. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 24/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN W.P.(C) NO.17246 of 2010 EXT.P1 TRUE COPY OF ORDER DATED 1.7.09 IN R.P.NO.96/2007 OF THE FOURTH RESPONDENT. EXT.P2 TRUE COPY OF AUCTION NOTIFICATION DATED 24.4.10 OF 5TH RESPONDENT ISSUED TO PETITIONER. EXT.P3 TRUE COPY OF THE AFFIDAVIT DATED 24.5.10 OF ADVOCATE P.T.ABRAHAM PRACTISING IN KOTTAYAM. //TRUE COPY// P.A. TO JUDGE. P.N. RAVINDRAN, J. ------------------------------- W.P.(C) No.17246 of 2010 ------------------------------- Dated this the 24th day of June, 2011 J U D G M E N T The petitioner availed a loan of Rs.25,000/- from the first respondent bank on 18.11.1998 on the security of a parcel of land, approximately 7 ½ cents in extent, situated in re-survey No.280/9 in Block No.14 of Thottakkadu Village. When the petitioner defaulted repayment of the loan, the bank filed A.R.C.No.415 of 2006 wherein the Arbitrator passed an award on 25.5.2006 allowing the bank to recover the sum of Rs.54,243/- with future interest thereon at the rate of 18% per annum. The petitioner challenged that award by filing R.P.No.96 of 2007 in the Kerala Co-operative Tribunal. By Ext.P1 order passed on 1.7.2009, the Tribunal modified the award passed by the Arbitrator and allowed the first respondent bank to recover from the petitioner and his assets the sum of Rs.46,313/- with 12% interest on the principal sum of Rs.25,000/- from the date of suit till realisation and costs. The petitioner was also permitted to clear of the liability in monthly instalments of Rs.5,000/- with the rider that if he commits default in remitting any two consecutive instalments, the bank will be entitled to realise the entire amount in lump. When the petitioner did not even thereafter pay the amount due in instalments, the bank took steps to bring the security to sale. Ext.P2 sale notice dated 24.4.2010 W.P.(C) No.17246/2010 2 was accordingly issued by the Sale Officer of the bank proposing to sell the security in public auction on 15.6.2010. The instant writ petition was thereupon filed on 2.6.2010 challenging the said sale notice. It is contended that Ext.P1 order passed by the Kerala Co- operative Tribunal was not communicated to the petitioner in time and therefore he could not pay the amount awarded in instalments. The petitioner has besides challenging Ext.P2 sale notice also prayed for an order directing the respondents to permit him to settle the amount due from him in monthly instalments of Rs.5000/-. 2. Respondents 1 and 2 have filed a counter affidavit dated 14.6.2010 justifying the steps taken by them to bring the security to sale. The bank has also filed a statement dated 31.3.2011 to the effect that the amount due as on 31.3.2011 was Rs.27,838/-. Later, a statement dated 25.5.2011 was filed to the effect that the balance amount due as on 22.5.2011 was Rs.26,937/-. 3. When this writ petition came up for admission-hearing on 14.6.2010, this Court passed an interim order granting a conditional stay of the sale notified as per Ext.P2 sale proclamation in the event of the petitioner depositing the sum of Rs.40,000/- on or before 16.7.2010 in two instalments. In the statements filed by respondents 1 and 2, it is stated that the said amount was paid in W.P.(C) No.17246/2010 3 addition to the payment of Rs.5000/- made by the petitioner on 7.6.2010. 4. When the writ petition came up for hearing today, Sri.P.Kuruvilla Jacob, learned counsel appearing for the petitioner prayed that an opportunity to pay the balance amount of Rs.26,937/- in four instalments. The learned counsel for respondents 1 and 2 did not oppose the said request. In such circumstances, having regard to the fact that the petitioner has pursuant to the interim orders of this Court remitted the sum of Rs.40,000/- and the balance amount due as on 22.5.2011 was Rs.26,937/-, I dispose of the writ petition with the following directions:- i) The petitioner shall pay the balance amount of Rs.26,937/- due as on 22.5.2011 in four equal monthly instalments. The first instalment shall be paid on or before 15.7.2011 and the subsequent instalments on the 15th of every succeeding English Calendar month. If the 15th of any month happens to be a holiday, payment shall be made on the next working day. ii) In the event of the petitioner paying the balance amount due as on 22.5.2011 in four equal monthly W.P.(C) No.17246/2010 4 instalments in the manner stipulated above, the bank shall record full satisfaction of the award and return the documents of title, if any, deposited by the petitioner. iii) If, on the other hand, the petitioner commits default in remitting any of the instalments, it will be open to the bank to recover the entire amount due in lump together with simple interest at the rate of 12% per annum from 22.5.2011 onwards. P.N. RAVINDRAN, JUDGE. nj.