BRANCH MANAGER KERALA STATE FINANCIAL ENTERPRISES LTD Vs. MEENACHIL CO OP AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD

JUDGEMENT

(1.) By order dated 28-12-1998 (Ext. P8), the Joint Registrar of Co-operative Societies, Kottayam (third respondent herein) had overruled the objections of the petitioner in the matter of confirmation of sale of a landed property, admeasuring 2 acres and 98 cents of land with a building in Sy. No. 341/4 of Thalapalam Village. This was purported to be in exercise of powers under Section 21 (3) of the Kerala State Cooperative Agricultural Development Banks Act, 1984 (Act 20 of 1984) (hereinafter referred to as Act 20 of 1984). The application was at the instance of the first respondent - The Meenachil Co-operative Agricultural and Rural Development Bank Ltd. The objector was the petitioner - Kerala State Financial Enterprises Limited, represented by its Branch Manager who had a claim that the property had been already mortgaged to them prior to the encumbrance created in favour of the first respondent - Bank. 4th Respondent was the owner of the properties, at the time when the properties had been mortgaged in favour of the petitioner, in the year 1994, by deposit of title deeds, as security in respect of Kuri transactions. Original Petition has been filed inter alia challenging the above order.

(2.) Respondents 4 and 5 had been subscribers to two Kuries in Chitty No. 2/94 and had been assigned Chittal Nos. 30 and 25 respectively. When the Kuries got prized, as required for the release of the prize amount, an equitable mortgage in respect of the property concerned had been created on 4-7-1994 and the title deeds in respect of the above land had been deposited with the petitioner company. This is nowhere disputed.

(3.) There was default in the future remittances. The dues were quantified as Rs. 4,00,030/- as on 14-2-1997. Being a notified establishment, under Section 71 of the Revenue Recovery Act, a requisition had been made to the District Collector, Kottayam for initiating action for recovering the amounts due from the said respondents. The petitioner refers to the certificates issued by the District Collector dated 22-2- 1997 and 24-2-1997. A demand notice prior to attachment had been duly issued on 12-3-1997 by the Special Deputy Tahsildar (RR), Ernakulam, and properties were attached on 27-1-1998.