K SURENDRAN NAIR Vs. STATE OF KERALA

JUDGEMENT

(1.) A member in default admits liability and request the society to proceed against the security, realize the dues and pay back the balance. Will the member cease to be in default in such circumstances?

(2.) The petitioner is aggrieved by Exhibits P6 and P8 orders. The issue relates to proceedings initiated against the petitioner under Rule 44 of the Kerala Cooperative Societies Rules. As per Exhibit P6 the second respondent Director found that the petitioner is in default. In Exhibit P7 appeal the Government confirmed the findings and rejected the appeal.

(3.) The petitioner is a member of the Board of Directors of Trivandrum Regional Cooperative Marketing Producers Union Ltd. and he is presently the Chairman. The third respondent brought to the notice of the second respondent as per Exhibit P1 that the petitioner is in default to the tune of Rs.29,92,000-00 with the fourth respondent District Cooperative Bank and that an arbitration case is also pending. The petitioner does not dispute the liability. His contention is that he cannot be treated to be in default since he had given Exhibit P3 request to the Trivandrum District Cooperative Bank to take over the unit in respect of which the loan had been availed, realise the dues and pay the balance to the petitioner and two others who are the partners of the firm, Josgo Tiles and Clay Products, who had availed the loan. The contention is having given such a letter, it cannot be said that the petitioner is in default. It is also not in dispute that A.R.C.No.22 of 1996 is pending in the matter in which the petitioner is one of the defendants.