Lekshmikutty T vs Kasaragod Primary Co Operative Agricultural And Rural Bank Limited

Gopinath P, J

The petitioners in these cases face proceedings under the Kerala State Co-operative Agricultural and Rural Development Bank Act, 1984 (in short ‘CARD Bank Act’) for recovery of amounts due under loans availed by them from the 1st respondent Bank. The petitioner in W.P(C)No.10433 of 2023 is the daughter of the petitioner in W.P.(C)No.10547 of 2023. Different properties belonging to the petitioners in these cases were brought to sale in an auction conducted 25.02.2023 and the 1st respondent Bank itself purchased the properties in auction. However, the sale proceedings have not so far been confirmed. The learned counsel appearing for the petitioners would submit that the petitioners in these cases will be able to clear the liabilities if some time is granted to them. It is submitted that at least six months time may be granted to the petitioners to clear the entire liabilities.

The learned counsel appearing for the 1st respondent Bank would submit that the petitioners have no legal right to claim that they should be given time to clear the liabilities. It is submitted that in terms of the provisions contained in the CARD Bank Act, the petitioners will have to pay 5% of the sale amount as a condition for setting aside any sale conducted under the provisions of that Act. It is submitted that if that amount is also factored, the petitioner in W.P.(C)No.10547 of 2023 has to pay a sum of Rs.54,64,989/- as on 25.02.2023, while the petitioner in W.P.(C)No.10433 of 2023 will have to pay (as on 25.02.2023) a sum of Rs.50,78,550/- to clear the entire liabilities. He submits that further interest and other charges will also be payable by the petitioners.

The learned counsel appearing for the petitioners in these cases would submit that since the properties have been purchased by the Bank itself and since the sale has not yet been confirmed, the respondent Bank will not be prejudiced if some time is granted to the petitioners to clear the liability.

Having heard the learned counsel appearing for the petitioners and the learned counsel appearing for the 1st respondent Bank, I am of the opinion that some time can be permitted to the petitioners to clear the entire liability and save their properties.

Accordingly, it is directed that the sale in respect of the properties belonging to the petitioners under the provisions of the CARD Bank Act shall not be confirmed for a further period of four months from today to enable the petitioners to clear the liability. If the petitioners fail to clear the liabilities within the aforesaid period of four months, it will be open to the respondent Bank to confirm the sale. The petitioners will also be liable to pay any accrued interests and costs that may be demanded by the Bank.

The writ petitions will stand disposed of as above.