CHARLS ANTONY v. THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES

BY ADVS. T.M.RAMAN KARTHA MANJU R. KARTHA M.S.SOUJATH SYAMA MOHAN REVATHY M.A. GREESHMA T.G. SNEHA BRIGIT PRINCE SRI.DHEERAJ A.S., GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.20826/2022 : 3 : N. NAGARESH, J. ````````````````````````````````````````````````````````````` W.P.(C) No.20826 of 2022 ````````````````````````````````````````````````````````````` Dated this the 9th day of January, 2024 J U D G M E N T ~ ~ ~ ~ ~ ~ ~ ~ ~ The petitioner, who is owner of four properties purchased under Exts.P1 to P1(c), has filed this writ petition seeking to quash Exts.P4 to P6. Ext.P4 is an attachment order passed by the Joint Registrar of Co-operative Societies, attaching the four properties. Ext.P5 is a notice to general public. Ext.P6 is the attachment order passed by the Arbitration and Execution Inspector.

2. The petitioner states that he has not availed any loan from the 3rd respondent-Co-operative Bank. The petitioner's wife and two daughters obtained three loans of ₹10 lakhs each from the 3rd respondent-Bank after mortgaging the property having an extent of 2.469 Acres. W.P.(C) No.20826/2022 : 4 : The Bank initiated arbitration proceedings 1758, 1759 and 1760 of 2020. The petitioner is not a party to any of those arbitration proceedings. According to the petitioner, the total outstanding in the said three loans together would come to about ₹48 lakhs.

3. The 4th respondent-Co-operative Bank filed OS No.9/2022 in the Munsiff's Court, Erattupetta seeking to restrain the parties therein from transferring the four items of property scheduled. To the surprise of the petitioner, the 1 st respondent-Joint Registrar issued Ext.P4 proceedings dated

10.06.2022 attaching the properties exclusively owned by the petitioner.

4. The petitioner states that he has not borrowed any amount nor stood as surety or guarantor in favour of any borrower. The Bank has not filed any arbitration case against the petitioner. The 3rd respondent, however, issued Ext.P5 proceedings attaching the property of the petitioner. Exts.P5 to P7 are illegal and unsustainable, contended the counsel for the petitioner. W.P.(C) No.20826/2022 : 5 :

5. Counsel entered appearance on behalf of respondents 4 and 5 and filed counter affidavit. Respondents 4 and 5 stated that the petitioner is a member of the respondent-Bank and has availed a loan facility on

19.08.2006 for an amount of ₹5 lakhs by securing his assets. The petitioner obtained enhancement of loan by mortgaging the property of Daisy Charles, who is the wife of the petitioner. The said loan was renewed and enhanced to ₹10 lakhs on 19.08.2010.

6. Respondents 4 and 5 pointed out that on

27.06.2013, there were five loans for ₹45 lakhs availed giving as security the property of Daisy Charles and later, on

18.06.2014 a loan of ₹10 lakhs was taken charging the property of Daisy Charles. The petitioner has no bona fide and the writ petition is liable to be dismissed, contended respondents 4 and 5.

7. I have heard the learned counsel for the petitioner and the learned counsel appearing for respondents 4 and 5. W.P.(C) No.20826/2022 : 6 :

8. The petitioner's case as narrated in the writ petition is that he is not a member of the Society and that he has not availed a loan or other financial assistance from the 4th respondent-Bank. The petitioner would assert that he is not even a guarantor to the transactions of the 4th respondent-Bank.

9. The 4th respondent would, however, submit that the petitioner is a member of the respondent-Bank with No.23333. The petitioner has availed a KCC facility on

19.08.2006 for an amount of ₹5 lakhs. The said KCC loan was availed securing his assets of 40.45 Ares, 30.35 Ares and 61.30 Ares in Re-survey No.44/3/2, 44/3/1 and 35/2/2 respectively. The petitioner has also obtained enhancement of loan by mortgaging the property of his wife.

10. I do not find any reason to disbelieve the statements of respondents 4 and 5 that the petitioner is a member of the Society and has obtained KCC loan facility. If that be so, for default in repayment of loan / financial advance, the Bank can very well proceed against the W.P.(C) No.20826/2022 : 7 : property mortgaged by the petitioner. The writ petition is without any merit and hence it is dismissed. aks/05.01.2024 Sd/- N. NAGARESH, JUDGE W.P.(C) No.20826/2022 : 8 : APPENDIX OF WP(C) 20826/2022 PETITIONER'S EXHIBITS Exhibit P1 Exhibit P1(a) Exhibit P1(b) Exhibit P1(c) Exhibit P2 Exhibit P2(a) Exhibit P3 Exhibit P4 Exhibit P5 Exhibit P6 THE COPY OF SALE DEED NO. 1154/2005 OF THE SRO ERATTUPETTA. THE COPY OF THE SALE DEED NO. 1155/2005 OF THE SRO ERATTUPETTA. THE COPY OF THE SALE DEED NO. 1958/2005 OF THE SRO ERATTUPETTA. THE COPY OF THE SALE DEED NO. 1959/2005 OF THE SRO ERATTUPETTA. THE COPY OF THE TAX RECEIPT DATED 6.8.2020 ISSUED FROM THE VILLAGE OFFICE MOONNILAVE SHOWING REMITTANCE OF TAX FOR AND 30.35 ARES AND 40.45 ARES IN RE. SY. NOS. 44/3/1 AND 44.3.2 RESPECTIVELY IN THE NAME OF THE PETITIONER. THE COPY OF THE TAX RECEIPT DATED 18.08.2021 ISSUED FROM THE VILLAGE OFFICE, MOONNILAVE SHOWING REMITTANCE OF TAX FOR 61.30 ARES AND 43.50 ARES IN RE. SY. NOS. 35/2-2 AND 35/2-3 RESPECTIVELY IN THE NAME OF THE PETITIONER. THE COPY OF THE PLAIN IN O.S. NO. 9/2022 BEFORE THE MUNSIFF'S COURT ERATTUPETTA FILED BY THE 4TH RESPONDENT HEREIN. THE COPY OF THE PROCEEDINGS DATED 10.06.2022 ISSUED BY THE 1ST RESPONDENT. THE COPY OF THE PROCEEDINGS DATED 17.06.2022 ISSUED BY RESPONDENT NO. 3 ATTACHING THE PROPERTY OF THE PETITIONER. THE COPY OF THE ORDER OF ATTACHMENT DATED 17.06.2022 ISSUED BY THE 3RD RESPONDENT. W.P.(C) No.20826/2022 : 9 : Exhibit P7 THE COPY OF THE DEMAND NOTICE DATED 17.06.2022 IN FORM 2 ISSUED AS PER RULE 74 SECTION 3 OF THE KERALA CO- OPERATIVE SOCIETIES ACT BY THE 3RD RESPONDENT. RESPONDENT'S EXHIBITS Exhibit R4(a) Exhibit R4(b) Exhibit R4(c) The Liability Statement of the petitioner's wife Smt Daisy Charls The Liability Statement of the petitioner's daughter Smt. Anit Catherine Charls The Liability Statement of the petitioner's daughter in law Smt. Anupriya Jins