In a recent judgment, the Kerala High Court provided financial relief to a petitioner struggling to repay a substantial overdue amount to a cooperative bank. The court allowed the repayment to be made in installments, ensuring the petitioner could manage the debt without immediate financial strain.
Background of the Case
The petitioner, Haridas M, aged 50, had taken a loan from the Kerala State Cooperative Bank Ltd. However, due to financial difficulties, he defaulted on repayments, leading to an overdue amount of Rs. 37,92,275 as of August 1, 2025. The bank initiated coercive proceedings, including a sale notice (Exhibit-P1), prompting Haridas to file a writ petition under Article 226 of the Constitution of India.
Petitioner’s Prayers
Haridas sought the court’s intervention to:
- Direct the bank to allow repayment of the entire outstanding amount in 24 equal monthly installments.
- Stay all further proceedings related to the sale notice until the repayment was completed.
- Request exemption from translating vernacular documents.
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After hearing both sides, Justice K. Babu disposed of the writ petition with specific directives:
"The petitioner shall remit an amount of Rs. 5,00,000 within one month from this day. The remaining overdue amount, along with accrued interest and charges, shall be repaid in 24 equal monthly installments."
Key Directives from the Court
- Initial Payment: Haridas must pay Rs. 5 lakhs within one month of the judgment (by September 6, 2025).
- Installment Plan: The remaining amount is to be paid in 24 equal monthly installments, starting from October 1, 2025.
- Regular EMIs: The petitioner must continue paying regular EMIs as per the loan agreement.
- Default Consequences: If any installment is missed, the bank can resume legal proceedings.
- Stay on Coercive Actions: All coercive actions, including the sale notice, will be paused to facilitate repayment.
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Implications of the Judgment
This ruling highlights the judiciary’s role in balancing the rights of financial institutions and borrowers facing genuine hardships. By allowing structured repayments, the court ensures that borrowers are not overwhelmed while safeguarding the bank’s interests.
Case Title: Haridas M. vs. The Special Sale Officer, Kerala State Cooperative Bank Ltd. & Others
Case No.: W.P.(C) No. 28291 of 2025