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CDJ 2026 Ker HC 1493 My Notes print Preview print print
Court : High Court of Kerala
Case No : WP(C) Nos. 7278, 7299, 7322 & 7917 OF 2024
Judges: THE HONOURABLE MR. JUSTICE P. GOPINATH
Parties : Sunny & Others Versus State Of Kerala Rep. By Secretary To The Government,Co-Operative Department, Government Secretariat, Thiruvananthapuram & Others
Appearing Advocates : For the Petitioners: N.L. Bitto, Mithul T Anto, Advocate. For the Respondents: R3, K. Jagadeesh, V. Renu, M. Praveenkumar(GP).
Date of Judgment : 22-09-2026
Head Note :-
Kerala Co-operative Societies Act, 1969 - Section 70 -

Comparative Citation:
2026 KER 72534,
Judgment :-

1. These writ petitions are filed challenging the recovery proceedings initiated by the respondent bank for recovery of amounts due under credit facilities availed by the petitioners from the respondent bank. The property belonging to the 1st petitioner in W.P.(C) No. 7278 of 2024 had been mortgaged to secure the repayment of liabilities in respect of all the loans in question. The property of the 1st petitioner in W.P.(C) No. 7278 of 2024 was sold in an auction and purchased by the respondent bank. However, the auction has not been confirmed on account of an interim order of this Court. The challenge raised by the petitioners against the awards passed under Section 70 of the Kerala Co-operative Societies Act, 1969, has also been rejected by the Kerala Co-operative Tribunal.

2. When these matters are taken up for consideration today, it is the submission of the learned counsel appearing for the petitioners that the petitioners may be permitted to approach the bank for the One Time Settlement (OTS) scheme now in force (Ashwas-2026). It is submitted that the provisions of the said OTS scheme can be availed of until the end of this month.

3. The learned counsel appearing for the respondent bank submits that the petitioners have not even applied for the benefits of the Ashwas Scheme. It is further submitted that the property has already been sold in auction, and confirmation alone is pending.

4. Having heard the learned counsel appearing for the petitioners and the learned counsel appearing for the respondent bank, and in the facts and circumstances noticed above, I am of the opinion that since the property of the 1st petitioner in W.P.(C) No. 7278 of 2024, which was mortgaged to secure the repayment of liabilities of the loans in question, has been purchased by the bank itself in an auction, and since the auction has not yet been confirmed, one opportunity can be given to the petitioners to apply for and obtain the benefits of the OTS scheme now in force (Ashwas-2026). However, as the OTS scheme now in force is to expire by the end of this month, it is directed that the petitioners shall make a suitable application before the competent authority seeking the benefits of the OTS scheme now in force (Ashwas-2026) by 5:00 p.m. on 24.09.2026. If the petitioners make such an application for the OTS within the time specified, the sale of the property of the 1st petitioner in W.P.(C) No. 7278 of 2024 in favour of the bank shall not be confirmed unless the petitioners fail to comply with any of the terms of the OTS that may be offered to them. All contentions of both sides are left open.

These writ petitions are disposed of as above.
 
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