ANTONY VARGHESE Vs. A AND E INSPECTOR

JUDGEMENT

(1.) The petitioner is a member of the Kattappana Rural Housing Society, a Society registered under the Kerala Co-operative Societies Act, 1969, for short the Act. The Society has been advancing loans to agriculturists within the area of its operation for the purpose of constructing houses.

(2.) The petitioner was given a loan of Rs. 13,500/- on his mortgaging his immovable property, measuring 2 acres 96 cents in extent, as evidenced by Ext. P.1. As per the bond executed by the petitioner, the loan advanced should be repaid in half yearly instalments of Rs. 675/- per instalment, and that in case default is committed in paying the instalments, the petitioner is liable to pay an extra 2 per cent as penal interest.

(3.) The petitioner paid some instalments but committed default in paying the subsequent instalments. This resulted in the 3rd respondent filing the Arbitration Case, A. R. C. No. 4123 of 1979 before the 2nd respondent.