LEELAMMA MARKOSE Vs. REGISTRAR OF CO OPERATIVE SOCIETIES

JUDGEMENT

(1.) THE petitioner's late husband had availed a loan of Rs.75,000/- from the third respondent in the year 1995. Default in the repayment of instalments towards the said loan account made the third respondent to resort to arbitration proceedings and that ultimately culminated in an award in ARC.No.105/1998. THE failure on the part of the petitioner to pay off the amount awarded constrained the third respondent to resort to further proceedings for the purpose of executing the award. Subsequently, the petitioner has been issued with Ext.P7 notice. As per the same, an amount of Rs.2,53,638/- was demanded. Ext.P7 was issued as early as on 1.7.2009. This Writ Petition has been filed challenging Ext.P7 and also seeking for a direction to the respondents to write off the loan amount in terms of Ext.P5.

(2.) A bare perusal of Ext.P4 would reveal that the same is totally inapplicable in the case of the petitioner considering the nature of the loan availed. When faced with such a situation, the learned counsel for the petitioner submitted that the petitioner would pay off the entire liability provided some time is granted therefor. The learned counsel appearing for the third respondent submitted that considering the fact that the loan was availed as early as in 1995 and the amount involved is more than 2 = lakhs, the petitioner could not seek further time after suffering an award in ARC No.105/1998. The learned counsel for the petitioner submitted that the petitioner would clear off the entire arrears outstanding towards the said loan account in case the petitioner is given six months' time for that purpose. After hearing the learned counsel on both sides, this Writ Petition is disposed of as hereunder:- The respondents shall keep in abeyance all coercive steps initiated as per Ext.P7 for a period of six months. In the meanwhile, the petitioner has to clear off the entire arrears demanded as per Ext.P7 and the interest accrued thereafter. The petitioner shall pay an amount of Rs.50,000/- within a period of one month from today. The balance amount shall be paid within a further period of five months. It is made clear that in case of failure on the part of the petitioner to pay of the entire liability within the above stipulated period, it will be open to the third respondent to continue with the proceedings initiated as per Ext.P7.