Ajayakumar K.K. and Shyamalakumariamma v Njeezoor Service Co-operative Bank Ltd. and The Assistant Registrar of Co-operative Societies (General), Arbitration and Execution General Office, Vaikom
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- Gopinath P.
- Judgment Date
- 2023-04-10
- Court Decision / Holding
- The petitions are disposed of by directing the 2nd respondent to consider and pass orders on the separate applications filed by the petitioners in respect of the awards after affording an opportunity of hearing within two months from the date of receipt of a certified copy of the judgment. Further, recovery of amounts due under the awards shall be kept in abeyance if the petitioners pay 25% adjudicated under each award within one month from today, with such payments to be adjusted against the loan liability.
- Final Disposition
- disposed of with directions to the 2nd respondent to hear and decide the set-aside applications within two months and to keep execution in abeyance on deposit of 25% under each award within one month; deposits to be adjusted against liability.
Parties to the Case
Appellants / Petitioners
- Ajayakumar K.K.
- Shyamalakumariamma
- Sreeja P.V.
Respondents
- Njeezoor Service Co-operative Bank Ltd.
- The Assistant Registrar of Co-operative Societies (General), Arbitration and Execution General Office, Vaikom
Legal Representation & Advocates
Counsels for Petitioners
- • V. Visal Ajayan
Counsels for Respondents
- • Karthikeyan M.G.
- • Nireesh Mathew (K/973/1994)
Case Synopsis & Summary
The writ petitions—WP(C) Nos. 39747/2022, 40442/2022 and 42473/2022—arise from separate awards issued under the Kerala Cooperative Societies Act against the petitioners for defaults on loans from the Njeezoor Service Co-operative Bank. The petitioners (husband and wife in 39747/2022 and 40442/2022; Sreeja P.V. in 42473/2022) challenge the ex parte awards, seeking setting aside on grounds of lack of opportunity to present a defence and due process. They prayed that the 2nd respondent (Arbitration and Execution General Office) be directed to consider their applications for setting aside the ex parte awards after hearing and that execution of the awards be kept in abeyance pending disposal of those applications. The bank contends that the awards were passed in 2018 and that the petitioners have shown no bonafide basis to stall payment. The court cites Rema Devi and others v. Joint Registrar of (General) Co-operative Societies (2016) 3 KHC 645 to emphasize fair consideration of such applications. Ultimately, the court disposes of the petitions by directing the 2nd respondent to hear and decide within two months, and to suspend further recovery if the petitioners deposit 25% of adjudicated amounts within one month, with such deposits to be adjusted against the liability. The petitions’ exhibits include the awards (Exhs. P1–P3) and applications to set aside.
Provisions of Law Cited
Submissions & Arguments
Contentions of Appellants / Petitioners
The petitioners argued that the ex parte awards should be tested on their merits. They filed separate applications to set aside the ex parte awards before the 2nd respondent and urged that, pending disposal, execution should be kept in abeyance. They relied on the principle that due process requires hearing and opportunity to defend, and invoked Rema Devi (2016 (3) KHC 645) to justify timely consideration. They asserted there was no deliberate attempt to evade liability and sought fair consideration with the possibility of a payment plan if warranted.
Contentions of Respondents
The respondents contended that the awards were issued in 2018 and that there is no demonstrable bonafide reason for delay in seeking setting aside. They urged that the petitions should be permitted to proceed only with timely action and that the bank be allowed to continue recovery where appropriate. They opposed indefinite delay and emphasized enforcing the liability as adjudicated, subject to any future legal challenge on merits.
Cited Precedents (1)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| Rema Devi and others v. Joint Registrar of (General) Co-operative Societies, Ekm and another | 2016 (3) KHC 645 | Positive | The court cites and follows the principle in Rema Devi regarding setting aside ex parte awards and the need for providing hearing and proper consideration, guiding its disposition. |
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