IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN MONDAY, THE 22ND AUGUST 2011 / 31ST SRAVANA 1933 WP(C).No. 4724 of 2011(M) ------------------------- PETITIONER(S): --------------- THE MANJOOR SERVICE CO-OPERATIVE BANK LTD.,NO.K.73,REP.BY ITS SECRETARY,KURUPPANTHARA, MANJOOR PO, KOTTAYAM-PIN 686 603. BY ADV. SRI.V.G.ARUN SRI.T.R.HARIKUMAR RESPONDENT(S): --------------- 1. THE STATE OF KERALA,REP.BY THE SECRETARY TO GOVERNMENT, CO-OPERATION (C) DEPARTMENT, GOVERNMENT SECRETARIAT,THIRUVANANTHAPURAM 695 001. 2. THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL),KOTTAYAM 686 001. 3. P.K.KUNJUKUTTY,222-B,THILAK NAGAR STREET, NADAR ROAD, ERODE, TAMILNADU PIN 638 002. 4. CHANDRA,W/O.P.K.KUNJUKUTTY,222-B,THILAK NAGAR STREET, NADAR ROAD, ERODE, TAMILNADU PIN 638 002. BY GOVT. PLEADER SRI. MOHAMMED SHAFI. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22/08/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX IN W.P.(C) NO.4724 of 2011 EXT.P1 A TRUE COPY OF THE LOAN APPLICATION FORM SUBMITTED BY THE 3RD RESPONDENT. EXT.P2 A TRUE COPY OF THE LOAN APPLICATION FORM SUBMITTED BY THE 4TH RESPONDENT. EXT.P3 A TRUE COPY OF THE EXTRACT OF LOAN ACCOUNT REGISTER OF THE 3RD RESPONDENT. EXT.P4 A TRUE COPY OF THE ORDER DATED 31.5.2005 OF THE 2ND RESPONDENT. EXT.P5 A TRUE COPY OF THE ORDER NO. CRP(2) 8596/09 DATED 7.11.2009 EXT.P6 A TRUE COPY OF GO (Rt) NO.748/10/Co-op DATED 27.11.2010 OF THE 1ST RESPONDENT. //TRUE COPY// P.A. TO JUDGE. P.N. RAVINDRAN, J. ------------------------------- W.P.(C) No.4724 of 2011 ------------------------------- Dated this the 22nd day of August, 2011 J U D G M E N T The petitioner, a co-operative society registered under the Kerala Co-operative Societies Act, 1969 has filed this writ petition challenging Exts.P4 and P5 letters sent by the Joint Registrar of Co- operative Societies (General) Kottayam whereby the Joint Registrar of Co-operative Societies directed the petitioner bank to refund the excess amount realised from respondents 3 and 4 by way of interest, in view of the stipulations contained in Circular No.15 of 2004 dated 31.3.2004. Ext.P6 order passed by the Government rejecting the appeal filed by the petitioner society from Exts.P4 and P5 is also under challenge in this writ petition. 2. Respondents 4 and 5 availed loans from the petitioner bank in May 2001. The contract rate of interest was 15% per annum. They repaid the loans on 23.2.2004. Shortly thereafter, the Registrar of Co-operative Societies issued Circular No.15 of 2004 dated 31.3.2004 granting interest relief to persons who have availed loans from co-operative societies and was in arrears as on 31.3.2004. The rate of interest stipulated was 11% per annum. Respondents 3 and 4 closed the loan accounts by repaying the entire amount before the W.P.(C) No.4724 of 2011 2 Circular was issued. Later, they moved the Joint Registrar of Co- operative Societies seeking refund of the excess amount paid by them. By Exts.P4 and P5 orders, the Joint Registrar of Co-operative Societies directed the petitioner bank to pay the excess amount realised from them by way of interest. That direction was upheld by the Government by Ext.P6. Hence this writ petition. 3. The issued raised in this writ petition is covered in favour of the petitioner by decision of the Division Bench of this Court in Cheranalloor Service Co.Op. Bank Ltd. v. Alfred (2010 (1) KLT 749 (DB) wherein it was held that one time settlement schemes are notified to collect the arrears due to the bank and not to refund the amounts already collected. Respondents 3 and 4 closed the loan accounts on 23.2.2004 before Circular No.15 of 2004 dated 31.3.2004 was issued. The Joint Registrar of Co-operative Societies was therefore not justified in directing the petitioner bank to refund the excess amount collected from respondents 3 and 4 by way of interest in view of the stipulations in Circular No.15 of 2004 dated 31.3.2004. Exts.P4 and P5 passed by the Joint Registrar of Co- operative Societies and Ext.P6 order passed by the Government cannot therefore be sustained. I accordingly allow the writ petition, quash Exts.P4, P5 W.P.(C) No.4724 of 2011 3 letters and P6 order and declare that the petitioner bank is not liable to refund any amount to respondents 3 and 4. P.N. RAVINDRAN, JUDGE. nj. P.N.RAVINDRAN, J. -------------------------------------- W.P.(C) No.4724 of 2011 JUDGMENT Dated:- 22nd August, 2011 --------------------------------------