Shobhanakumari vs Assistant Registrar (General) Of Co Operative Societies

Gopinath P, J

The petitioners owe certain amounts to the respondent Society in terms of the provisions contained in a monthly deposit scheme to which the petitioners were subscribers. The Society initiated proceedings under the Co-operative Societies Act, 1969 and obtained awards determining the amounts due from the petitioners. On the awards being put to execution, the petitioners have approached this Court by filing the above writ petition and praying that some breathing time may be granted to the petitioners to clear the liability in some instalments.

The learned counsel appearing for the respondent Society would submit that the amounts were withdrawn by the petitioners in the year 2021 and there has been practically no repayment till today (23.6.2023). It is submitted that though the MDS Scheme in which the petitioners were subscribers expired in the year 2021, there is practically no repayment and therefore, while the petitioners may be given some reasonable instalments, the number of instalments may be limited. He states that, as on 5.6.2023, the amount due from the petitioners is Rs.25,45,000/-.

Having regard to the circumstances of the case and the situation now prevailing, apart from the submissions made as recorded above, I am of the view that the petitioners can be granted an opportunity to repay the outstanding amount in ten (10) instalments.

Accordingly, there will be a direction to the respondent Society to accept repayment of the entire outstanding amount of Rs.25,45,000/-along with bank charges from the petitioners on the following conditions:

(i) The outstanding amount of Rs.25,45,000/- together with any accrued interest/costs shall be repaid in ten (10) equated monthly instalments.

(ii) The first instalment shall be paid on or before 10-07-2023 and subsequent instalments shall be paid on or before 10th day of every succeeding months.

(iii) In the event of default of any one instalment, the respondent Society shall be entitled to proceed in accordance with law.

(iv) In order to enable the petitioner to repay the entire amounts, all coercive proceedings shall be kept in abeyance.

The writ petition is disposed of as above.