LAWS(KER)-2024-12-119

MANAGING COMMITTEE OF CHEMPAZHANTHI AGRICULTURAL IMPROVEMENT CO-OP SOCIETY Vs. ASSISTANT REGISTRAR OF CO-OP SOCIETIES

Decided On December 20, 2024
Managing Committee Of Chempazhanthi Agricultural Improvement Co-Op Society Appellant
V/S
Assistant Registrar Of Co-Op Societies Respondents

JUDGEMENT

(1.) Chempazhanthi Agricultural Improvement Co-operative Society and its Managing Committee have filed this writ petition challenging Ext.P2 communication issued by the respondent, the Assistant Registrar of Co-operative Societies, directing the Secretary to remove the flex board displaying the names and photographs of defaulting borrowers in front of their head office.

(2.) It is stated that the Society has deposits amounting to Rs.28.00 crores, loan outstandings of Rs.12.00 crores, and an overdue of 59%. To recover the loan amount, the Society has filed 62 arbitration cases and execution petitions before the respondent. However, recovering the loans has proven to be highly challenging. It is stated that, despite repeated demands made by the Society, including personal meetings with the borrowers, the Society, as a last resort, published Ext.P1 list of borrowers containing their names, photographs, the loan amounts due and other particulars of loan for the information of the loanees. Since the publication, recovery efforts have been progressing, with the borrowers approaching the Society to close their loans, make partial payments, or renew their loans. Motivated by the positive response, another set is being prepared for publication in the premises of the Society. In the meantime, the respondent issued Ext.P2 communication directing removal of the flex board displaying the names and photographs of the defaulting borrowers. The communication stated that displaying a person's photograph or information without their consent is illegal and informed the Secretary of the Society that the Secretary would be held legally responsible for any damages resulting from the said action.

(3.) It is contended that the Society has no funds of its own and the deposits received from members are utilized for the disbursement of loans. The loanees have a corresponding duty to repay the loan amounts on time; otherwise, the Society may collapse or be liquidated and it is the Society's bounden duty to recover the loan, and the respondent cannot dictate terms that interfere with the recovery process if it is in accordance with the law. It is further contended that if the "beat of tom- tom" in the village, as per Rule 81 of the Kerala Co- operative Societies Rules, 1969, is permitted while the attachment and sale of immovable property, then there is nothing improper in displaying a board containing the details of the defaulting loanees. Therefore, the petitioners seek to set aside Ext. P2 communication and to declare that the respondent has no authority to direct the Society to remove Ext. P1 board.