High Court · 2025

W.P.(MD)No.4513 of 2025BEFORE THE MADURAI BENCH OF MADRAS HIGH COURTDATED: 14.11.2025CORAM:THE HON'BLE MS.JUSTICE P.T.ASHAW.P.(MD).No.4513 of 2025andW.M.P(MD)No.3242 of 2025Ravikumar... PetitionerVs.1. The Joint Registrar/Liquidator, No. 28, Madurai Urban Cooperative Bank (Liquidated ) Ltd., Door No. 32, Naicker New Street, Madurai 625 001.2. The Deputy Registrar of Cooperative Societies, Madurai Circle, 2nd Floor TPK Road, Near Palanganatham, Roundana, Madurai 625 003.... RespondentsPrayer: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari to call for the records of the impugned auction sale notice issued by the 2nd respondent in Form No. 8 and Form No. 9 in C.E.P.60/2024-2025/SF dated 09.01.2025.For Petitioner: Mr.M.KannanFor R1 to R2: Mr.A.Kannan Additional Government Pleader1/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 2025ORDERThe writ petition has been filed seeking to quash the impugned auction sale notice issued by the 2nd respondent dated 09.01.2025. 2. It is the case of the petitioner that the subject property bearing Door No.7A belonged to his grand mother Pappammal. The said Pappammal had borrowed a sum of Rs.3,50,000/- from the Madurai Urban Cooperative Bank which has been liquidated and is presently represented by the 1st respondent. She had mortgaged the subject property by executing a mortgage deed dated 17.09.2001.3. The petitioner would submit that her grandparents were eking out their livelihood by doing coolie works and running the family with very great difficulty. Initially they were servicing the loan properly by repaying it. Meanwhile on 27.12.2007, the said Pappammal passed away leaving behind her husband namely Kasithevar, the petitioner's father Pandian and her daughter Pasupathi. Thereafter, the said Kasithevar passed away on 03.08.202, leaving behind his son, the petitioner's father Pandian and his daughter Pasupathi as the legal heirs. 2/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 20254. While so, the petitioner's father Pandian passed away on 01.01.2021, leaving behind him surviving the petitioner, his mother and two other children as his legal heirs. The petitioner's paternal aunt's husband has also passed away and she was living at Nagamalai Pudukottai along with her children in financially strained circumstances. 5. The petitioner would submit that his father was engaged as a lorry driver and therefore, he and his brother Manikandaraja were also carrying on the same business. In the light of the above factors and due to the financial constraints the loan could not be repaid.6. After the demise of his father in the year 2021, the petitioner and his brothers have been approaching the respondents from the year 2022 requesting them to grant the benefit of waiver of penal interest and other charges and asking for of settlement of loan through the various waiver schemes that had been introduced by the Government of Tamil Nadu.3/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 20257. The respondents had agreed to inform the petitioner that as and when the scheme has announced they would keep them informed so as to enable them to avail the benefit. While so, the 2nd respondent instead of informing them about the scheme has issued an auction Sale Notice dated 09.01.2025, stating that the above mentioned subject property was going on to be brought on public auction on 26.02.2025, for the outstanding amount of Rs.10,88,269/-. The 2nd respondent has issued this notice without affording an opportunity to the petitioner to settle the loan on the basis of the waiver claim.8. The petitioner would submit that that thereafter they came to learn that the waiver scheme had been introduced by the Government of Tamil Nadu which is noticed in the proceedings of the Registrar of Cooperative Societies dated 21.12.2023.9. Under this scheme, the respondents had to calculate the loan amount and the actual amount that is to be paid in accordance with the scheme and send the offer to the borrowers. The borrowers were liable to pay interest at the rate of 9% simple interest from the date of agreement as per the scheme. 4/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 202510. The scheme provided that the initial 25% of the outstanding amount of the dues had to be paid and the remaining 75% could be paid over a period of six months. None of these were intimated to the petitioner more particularly when the scheme contemplated that the respondents should calculate the loan amount and intimate the borrower. Therefore, the petitioner is before this Court.11. The learned counsel appearing for the petitioner would submit that the Government had come forward with the scheme in respect of the Cooperative Societies for the period of 2023-2024 which was titled as follows:-“Tl;Lwt[ r';f';fspy; tNy; Mfhky; epYitapYs;s jtiz jtwpa gz;iz rhuhf; fld;fs; kw;Wk; ,ju ePz;l fhy epYit ,d';fSf;F rpwg;g[ fld; jPu;t[j; jpl;lk;” 12. The scheme contemplated the procedures for settling the dues in Clause 3 of the scheme and that apart under clause 3(ii) interest payable was at 9%. The scheme has also contemplated how the cooperative societies have to convey the scheme to its consumers. 5/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 202513. The learned counsel appearing for the petitioner would further submit that the respondents have totally given a go by to the scheme and brought the property to sale. The petitioner would submit that they are ready to pay the outstanding which is to be calculated along with interest at 9% on the principal as directed in the scheme and an undertaking affidavit to this effect has been submitted. 14. Mr.A.Kannan, learned Additional Government Pleader appearing for the respondents would submit that the petitioner cannot at this stage seek to have this waiver as the property has already been brought to sale and only on account of this Court, the auction sale could not be finalized. He would submit that therefore, the undertaking of the petitioner could not be accepted. 15. Heard the learned counsel on either side. 6/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 202516. From perusal of the scheme, which specifically relates to cooperative societies, it is evident from the very nomenclature of the scheme that it contemplates the process of settling the dues as detailed in Clause 3(i) and (ii) of the Scheme which reads as follows:- 3.fld; jPu;t[ Kiwi) ,j;jpl;lj;jpy; gad;bgw fld;jhuu;. ,j;jpl;lj;jpd;go fzf;fplg;gl;l epYitj; bjhifapy; 25 rjtPjj; bjhifia murhiz btspaplg;gl;l ehspypUe;J (13.12.2023) K:d;W khjj;jpw;Fs; brYj;jp. t';fp-r';fj;Jld; xg;ge;jk; nkw;bfhs;s ntz;Lk;/ kPjKs;s 75 rjtPjj; bjhifia xg;ge;jk; nkw;bfhs;sg;gl;l ehspypUe;J 6 khj fhyj;jpw;Fs; mjpfgl;rkhf 6 jtizfSf;Fs; brYj;j ntz;Lk;/ii) fld; tH';fg;gl;l njjpapypUe;J xg;ge;jk; nkw;bfhs;Sk; ehs; Koa mrYf;F 9% rhjhuz tl;o tNypf;fg;gLk;/ TLjy; tl;o. Mguhj tl;o. ,ju brytpd';fs; KGikahf js;Sgo bra;ag;gLk;/nkw;go fhyf; fl;lj;jpy; fld;jhuu; bjhif VJk; jpUk;g brYj;jpapUf;Fk; gl;rj;jpy; me;je;j njjpfspy; epYitapypUe;j mry; kw;Wk; tl;of;F (9% tl;o tpfpjj;jpy; fzf;fplg;gLk;) <L bra;J ,Wjpj; bjhif fzf;fplg;gLk;/ ,izg;g[ II-,y; khjpup tl;o fzf;fpLk; Kiw bfhLf;fg;gl;Ls;sJ/7/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 202517. Under Clause 4 certain guidelines are directed to be followed by the Cooperative Societies. One of the guidelines is found at 4(4) which would read as follows:- fld;jhuu;fSf;F mwptpg;ig tH';Ftjw;F VJthf fld;jhuupd; fld; tptu fzf;fpid gotk; 1-,y; jahu; bra;J jpl;lj;jpd; gyd;fis vLj;Jiuj;J. jpl;lj;jpy; nrUkhW fld;jhuUf;F mwptpg;g[ (notice) mDg;g ntz;Lk;/ xg;ge;jk;. (mwptpg;gpd; khjpupia Coop Data Portal-,ypUe;J gjptpwf;fk; bra;ayhk;)/ gotk;-1 kw;Wk; mwtpg;gpid jahu; bra;a[k; bghUl;L. EpYitj; bjhifiaf; fzf;fpLtjw;fhd ,Wjp njjpahf 31.12.2022-$ vLj;Jf;bfhs;syhk;/ vt;thwhapDk;. fld;jhuu; t';fpa[ld; xg;ge;jk; bra;J bfhs;Sk; njjpf;F cz;ikahd epYitj; bjhif ,izg;g[-II ,y; fz;Ls;sthW kPz;Lk; fzf;fplg;gl ntz;Lk;/ ,j;bjhifia fld;jhuu; brYj;j ntz;oa epYitj; bjhif Mfk;;/18. Admittedly, the respondents who had assured the petitioner that they would intimate them about any waiver scheme that would be introduced has failed to do so. That apart, they have not brought it to the notice of the petitioner. The scheme has been introduced where under the petitioner could avail its benefits, suppressing the scheme, the auction notice had come to be issued. 8/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 202519. Therefore, considering the fact that the petitioner would squarely fall within the parameters set out in this scheme and the petitioner has also given an undertaking to settle the dues, this Court is of the opinion that impugned notice bringing the property to sale has to necessarily be set aside, particularly when the 1st respondent, which is now under the liquidation, has failed to take into account the provisions of this scheme and has ignored the same and demanded repayment of the amounts on the contractual rate.20. Therefore, Impugned Auction Notice dated 09.02.2025 is set aside. Accordingly, the writ petition stands allowed. The respondents are directed to calculate the outstanding keeping in mind the scheme viz., “Tl;Lwt[ r';f';fspy; tNy; Mfhky; epYitapYs;s jtiz jtwpa gz;iz rhuhf; fld;fs; kw;Wk; ,ju ePz;l fhy epYit ,d';fSf;F rpwg;g[ fld; jPu;t[j; jpl;lk;” and following the procedures contemplated therein fix the outstanding amount together with 9% interest. 9/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 202521. The petitioner having undertaken to pay the said sum calculated namely the principal with 9% interest shall pay the amount within two (2) weeks from the date of its qualification by the respondent and demand being made. On such payment, the mortgage shall be cancelled and the documents be handed over back to the petitioner. 22. With the above directions, the writ petition stands allowed. No costs. Consequently, connected miscellaneous petition is closed. 14.11.2025NCC :yes/NoIndex :yes/NoInternet:yes/Norgm10/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 2025To1. The Joint Registrar/Liquidator, No. 28, Madurai Urban Cooperative Bank (Liquidated ) Ltd., Door No. 32, Naicker New Street, Madurai 625 001.2. The Deputy Registrar of Cooperative Societies, Madurai Circle, 2nd Floor TPK Road, Near Palanganatham, Roundana, Madurai 625 003.11/12 https://www.mhc.tn.gov.in/judis W.P.(MD)No.4513 of 2025P.T.ASHA, J.rgmW.P.(MD).No.4513 of 2025andW.M.P(MD)No.3242 of 202514.11.202512/12