Sibi Job vs Wayanad Primary Co Operative Agricultural And Rural Development Bank Ltd

Gopinath P, J

The petitioner availed several credit facilities from the first respondent bank. On default being committed, proceedings have been initiated against the petitioner under the provisions of the Kerala State Co-operative Agricultural and Rural Development Bank Act, 1984 (in short ‘CARD Act’), prompting the petitioner to approach this Court by filing the above writ petition.

The learned counsel appearing for the petitioner would submit that the petitioner may be permitted to clear the liability in some instalments. He also submits that the total principal amount was only Rs.6,26,454/- and it appears that the interest amount charged by the respondent bank is much more than the principal amount. He prays that the petitioner may also be permitted to approach the bank for statement of accounts and for reduction of interest etc.

The learned counsel appearing for the respondent bank submits that the total outstanding liability in respect of the seven loans taken by the petitioner is Rs.17,47,391/- (Rupees Seventeen lakh Forty Seven Thousand Three Hundred and Ninety One only) as on 17.6.2023. He submits that the bank has no objection in some instalments being granted to the petitioner to clear the liability.

The learned counsel appearing for the respondent bank would also submit that the loans were availed in the year 2012 and there has been practically no repayment in respect of the loans and therefore, the petitioner cannot have a complaint that the interest amount is much more than the principal amount.

Having regard to the submissions made, the writ petition is disposed of with the following directions:

(i) The outstanding amount of Rs.17,47,391/-(Rupees Seventeen lakh Forty Seven Thousand Three Hundred and Ninety One only) along with any accrued interest/costs shall be paid in twenty (20) monthly instalments.

(ii) The first instalment shall be paid on or before 30.06.2023 and subsequent instalments shall be paid on or before the 30th day of the every succeeding month.

(iii) In the event of default of any one instalment, the respondent bank 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.

It is made clear that this judgment will not prevent the petitioner from approaching the bank for a copy of the statement of accounts in respect of each of the loans and also in approaching the bank for reduction of interest etc. However, the filing of any such representation by the petitioner will not absolve the petitioner of the responsibility to clear the liability in terms of this judgment. Since substantially, liberal instalments have already been granted to the petitioner, it is made clear that no application for extension of time will be entertained by this Court in this matter.

The writ petition will stand disposed of as above.