The Vallikkunnu Service Cooperative Bank Limited v Kerala Co-operative Tribunal and Usha K.

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: N. Nagareesh
Judgment Date: 2024-07-10
Court Decision / Holding: The writ petition is disposed of directing the Kerala Co-operative Tribunal to finally dispose of Ext.P4 series of revision petitions within two months from the copy of the judgment, while adverting to the issue of delay.
Final Disposition: Disposed with directions to decide revision petitions within two months, with consideration given to the delay issue.

Parties to the Case

Appellants / Petitioners

The Vallikkunnu Service Cooperative Bank Limited

Respondents

Kerala Cooperative Tribunal Jawahar Sahakaranabhaavan, DPI Junction, Thycaud P.O, Thiruvananthapuram
Usha K.

Legal Representation & Advocates

Counsels for Petitioners

• Adv. Arun Chandran

Counsels for Respondents

• Sri K.M. Firoz

Case Synopsis & Summary

The Vallikkunnu Service Cooperative Bank Limited, a Primary Co-operative Credit Society registered under the Kerala Co-operative Societies Act, 1969, challenges four ARC awards passed in favour of the Society against the 2nd respondent, Usha K., who mortgaged her property for four loans. After the awards, the 2nd respondent obtained interim relief from sale by filing WP(C) No. 22931 of 2023, with payment of ₹5 lakhs and later ₹7 lakhs. During pendency, the 2nd respondent filed revision petitions before the Kerala Co-operative Tribunal under Section 84 of the 1969 Act, while the writ petition continued. The petitioner alleges that the 2nd respondent suppressed material facts, including pendency of the writ petition, and that the Tribunal condoned an extraordinary 541-day delay, issuing an interim order to sell only after 15% of the award amounts were deposited, a condition not satisfied. The petitioner contends the Tribunal had no source of power to condone such delay and that the revision petitions are time-barred and obtained by fraud. The 2nd respondent contends that delay can be addressed in the Tribunal under Section 84. The High Court disposed of the writ petition by directing the Tribunal to finally dispose of the revision petitions within two months, while also adverting to the delay issue.

Provisions of Law Cited

Kerala Co-operative Societies Act, 1969Section 84 of the Kerala Co-operative Societies Act, 1969

Legal Doctrines & Maxims

Delay can be condoned by appellate or revisional forum even in the absence of an application if the delay is satisfactorily explained (cited to Joseph K.V. v. Secretary, Thodupuzha Co-operative Agricultural and Rural Development Bank, 2015 (4) KLT SN 36).
Tribunal's power to condone delay is limited (condonation to a limited extent).

Submissions & Arguments

Contentions of Appellants / Petitioners

The bank contends that the 2nd respondent suppressed material facts and that the Kerala Co-operative Tribunal had no power to condone a delay of 541 days; the interim orders were obtained by fraud, and the revision petitions are time-barred. The writ petition seeks to set aside the Tribunal's interim relief and to challenge the maintainability of the revision petitions.

Contentions of Respondents

The 2nd respondent argues that the revision petitions under Section 84 are properly before the Tribunal; if there is any delay grievance, it should be raised before the Tribunal, not via writ; delay can be condoned to some extent and the interim orders were legally issued per the Tribunal’s proceedings.

Cited Precedents (1)

Case Name	Citation	Treatment	Explanation
Joseph K.V. v. Secretary, Thodupuzha Co-operative Agricultural and Rural Development Bank	2015 (4) KLT SN 36	Mentioned Only	Cited by counsel to support the proposition of condoning delay; the court, however, does not adopt this expansive view and indicates delay may be condoned only to a limited extent.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** # **`PRESENT`** ## **`THE HONOURABLE MR.JUSTICE N.NAGARESH`** ``` WEDNESDAY, THE 10[TH] DAY OF JULY 2024 / 19TH ASHADHA, 1946 ``` ## **`WP(C) NO. 15463 OF 2024`** ## **`PETITIONER:`** ``` THE VALLIKKUNNU SERVICE COOPERATIVE BANK LIMITED NO.M4, VALLIKKUNNU, MALAPPURAM DISTRICT REPRESENTED BY ITS SECRETARY, PIN – 673314 ``` ## **`BY ADV ARUN CHANDRAN`** ## **`RESPONDENTS:`** - **`1 KERALA COOPERATIVE TRIBUNAL JAWAHAR SAHAKARANABHAVAN, DPI JUNCTION, THYCAUD P.O, THIRUVANANTHAPURAM, PIN - 695014`** - **`2 USHA K AGED 61 YEARS`** ``` D/O KUNHIRAMAN NAIR, KARUPPATH HOUSE, ARIYALLUR P.O, ARIYALLUR, AMSOM DESOM PARAPPANANGADI,MALAPPURAM DISTRICT, PIN – 676312 ``` ``` SRI.K.M. FIROZ, R1 ``` ``` THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` WP(C) No.15463 of 2024 ``` ``` 2 ``` ## JUDGMENT Dated this the 10[th] day of July, 2024 The petitioner is a Primary Co-operative Credit Society registered and functioning under the provisions of the Kerala Co-operative Societies Act, 1969 and the Rules framed thereunder. 2. The 2[nd] respondent is a member of the petitionerSociety. She had availed four loans from the petitioner-Bank along with three other persons by offering her property as mortgage, in the year 2015. As the 2[nd] respondent defaulted in repayment of the loan accounts, the Society initiated ARC proceedings against the 2[nd] respondent. 3. After hearing the parties concerned, the Arbitrator passed four Awards in favour of the Society. Challenging the said Awards, the 2[nd] respondent filed W.P.(C) No.22931 of 2023 and obtained an interim order to defer the sale proceedings consequent to the Awards, on payment of ``` WP(C) No.15463 of 2024 ``` ``` 3 ``` ₹5 lakhs as an interim measure. Thereafter, the interim order was extended on 18.09.2023, on payment of another sum of ₹7, 00, 000/-. 4. Petitioner states that during the pendency of the above writ petition, the 2[nd] respondent filed revision petitions before the Kerala Co-operative Tribunal, Thiruvananthapuram, suppressing material facts, including the pendency of the above writ petition. Further, there was a delay of 541 days, which was condoned by the Tribunal. 5. Going by the provisions of the Act, 1969, the Tribunal has no source of power to condone delay. Even then the Tribunal condoned the delay and granted an interim order interdicting the sale on payment of 15% of the Award amounts within a period of 60 days from the order, which was not adhered to by the 2[nd] respondent. 6. Thereafter, by orders dated 23.02.2024, the Tribunal permitted the 2[nd] respondent to remit the balance amount of ₹1,36,000/- so as to calculate 15% of the Award ``` WP(C) No.15463 of 2024 ``` ``` 4 ``` amounts, after deducting ₹12,00,000/- which was remitted as per the interim directions of this Court in W.P.(C) No.22931 of 2023, 7. In fact, the 2[nd] respondent has suppressed the material facts so as to obtain the above interim order and the pendency of the above writ petition was never brought to the notice of the Tribunal, contends the petitioner. After securing the interim order from the Tribunal only, the writ petition was withdrawn by the 2[nd] respondent. The interim orders passed by the Tribunal are illegal and the revision petitions are not maintainable as the same are hit by limitation and fraud, contended the petitioner. 8. The 2[nd] respondent entered appearance and resisted the writ petition. The 2[nd] respondent submitted that as the revision petitions have been filed invoking the provisions of Section 84 of the Kerala Co-operative Societies Act, 1969, if the petitioner has any grievance relating to delay or condonation of delay, the petitioner has to raise the same ``` WP(C) No.15463 of 2024 ``` **==> picture [71 x 7] intentionally omitted <==** before the Co-operative Tribunal. A writ petition for that purpose is not maintainable. 9. I have heard the learned counsel for the petitioner and the learned counsel appearing for the 2[nd] respondent. 10. The 2[nd] respondent has filed four revision petitions before the Kerala Co-operative Tribunal, Thiruvananthapuram. The specific case of the petitioner is that the revision petitions have to be filed within 90 days, which is the reasonable time laid down by various judgments of this Court. The Tribunal has not considered this aspect and is proceeding without considering the issue of delay. It is without condoning the delay that interim orders are being granted to the 2[nd] respondent. 11. Counsel for the petitioner on the other hand would submit that in view of the judgment in Joseph K.V. v. Secretary, Thodupuzha Co-operative Agricultural and Rural Development Bank [2015 (4) KLT SN 36]. The delay can be condoned by an Appellate or Revisional Forum even in the ``` WP(C) No.15463 of 2024 ``` ``` 6 ``` absence of an application, if the delay is satisfactorily explained. The petitioner would contend that there is no satisfactory explanation whatsoever. 12. Be that as it may since the Tribunal has power to condone the delay though to a limited extent, it would be only appropriate that the Tribunal considers the issue of delay at the earliest. As the pleadings are complete in the revision petitions, it would be only appropriate that the Tribunal dispose of the revision petitions at the earliest. The writ petition is therefore disposed of directing the Kerala Co-operative Tribunal, Thiruvananthapuram to finally dispose of Ext.P4 series of revision petitions within a period of two months from the date of receipt of copy of this judgment adverting to the issue of delay also. ## Sd/- ## N.NAGARESH JUDGE spk ``` WP(C) No.15463 of 2024 ``` ``` 7 ``` ## **`APPENDIX OF WP(C) 15463/2024`** ## **`PETITIONER EXHIBITS`** - **`Exhibit P1 TRUE COPY OF THE WRIT PETITION (CIVIL) NO.22931 OF 2023 FILED BY THE 2ND RESPONDENT BEFORE THIS HON'BLE COURT DATED 12.07.2023`** - **`Exhibit P2 TRUE COPY OF THE INTERIM ORDER IN WRIT PETITION (CIVIL) NO. 22931 OF 2023 DATED 14.07.2023`** - **`Exhibit P3 TRUE COPY OF THE INTERIM ORDER IN IN WRIT PETITION (CIVIL) NO. 22931 OF 2023 DATED 18.09.2023`** - **`Exhibit P4 TRUE COPY OF IA NO. 1/2023 IN WRIT PETITION (CIVIL) NO. 22931 OF 2023 DATED 23.11.2023`** - **`Exhibit P4 (A) TRUE COPY OF REVISION PETITION NO. 98/2023 FILED BY THE 2ND RESPONDENT BEFORE 1ST RESPONDENT DATED 18.09.2023`** - **`Exhibit P4 (B) TRUE COPY OF REVISION PETITION NO. 99/2023 FILED BY THE 2ND RESPONDENT BEFORE 1ST RESPONDENT DATED 18.09.2023`** - **`Exhibit P4 (C) TRUE COPY OF REVISION PETITION NO. 100/2023 FILED BY THE 2ND RESPONDENT BEFORE 1ST RESPONDENT DATED 18.09.2023`** - **`Exhibit P4 (D) TRUE COPY OF REVISION PETITION NO. 101/2023 FILED BY THE 2ND RESPONDENT BEFORE 1ST RESPONDENT DATED 18.09.2023`** - **`Exhibit P5 TRUE COPY OF THE JUDGMENT DATED 05.12.2023 IN WRIT PETITION (CIVIL) NO. 22931 OF 2023`** - **`Exhibit P6 TRUE COPY OF THE INTERIM ORDER PASSED BY THE 1ST RESPONDENT IN REVISION PETITION NO. 98/2023 DATED 24.11.2023`** - **`Exhibit P6 (a) TRUE COPY OF THE INTERIM ORDER PASSED BY THE 1ST RESPONDENT IN REVISION PETITION NO. 99/2023 DATED 24.11.2023`** - **`Exhibit P6 (b) TRUE COPY OF THE INTERIM ORDER PASSED BY THE 1ST RESPONDENT IN REVISION PETITION NO. 100/2023`** ``` WP(C) No.15463 of 2024 ``` ``` 8 ``` ``` Exhibit P6 (c)TRUE COPY OF THE INTERIM ORDER PASSED BY THE 1ST RESPONDENT IN REVISION PETITION NO. 101/2023 DATED 24.11.2023 Exhibit P7TRUE COPY OF THE I.A NO. 703/2023 IN REVISION PETITION NO. 98/2023 ``` ``` Exhibit P8TRUE COPY OF THE INTERIM ORDER PASSED BY 1ST RESPONDENT TRIBUNAL IN I.A NO. 167/2024 IN I.A NO. 703/2023 IN REVISION PETITION NO. 98/2023 DATED 23.02.2024 ``` ``` Exhibit P8 (A)TRUE COPY OF THE INTERIM ORDER PASSED BY 1ST RESPONDENT TRIBUNAL IN I.A NO. 168/2024 IN I.A NO. 708/2023 IN REVISION PETITION NO. 99/2023 DATED 23.02.2024 ``` ``` Exhibit P8 (B)TRUE COPY OF THE INTERIM ORDER PASSED BY 1ST RESPONDENT TRIBUNAL IN I.A NO. 169/2024 IN I.A NO. 712/2023 IN REVISION PETITION NO. 100/2023 DATED 23.02.2024 ``` ``` Exhibit P8 (C)TRUE COPY OF THE INTERIM ORDER PASSED BY 1ST RESPONDENT TRIBUNAL IN I.A NO. 170/2024 IN I.A NO. 716/2023 IN REVISION PETITION NO. 101/2023 DATED 23.02.2024 ```