PARMESWARAN PILLAI Vs. SPECIAL SALE OFFICER

JUDGEMENT

(1.) The petitioners are husband and wife. They are members of the third respondent which is a Cooperative Society registered under the Kerala Cooperative Societies Act, 1969 (for short, the Act). They had taken loans from the third responding of Rs. 1800/- and Rs. 1850/- respectively on January 29, 1976 repayable in equal monthly instalments, in one year, with interest at 12.5% per annum, and with additional interest of 4% in case the amounts were not repaid within the time fixed. The loans were secured by hypothecation of the standing crops in their property.

(2.) The loans were not repaid, with the result the third respondent initiated proceedings under S.69 of the Act for recovery of the amounts due, with future interest, and additional interest, from the date of the proceedings till recovery, and costs of the proceedings. These cases were referred to the Unit Inspector of Cooperative Societies, Koovapady, as arbitrator under S.70(1)(c) of the Act. The petitioners remained ex parte, and the arbitrator passed awards Exts.P1 and P1(a) on April 12, 1978 directing payment of the amounts claimed with future interest at 12.5% per annum, and additional interest at 4% per annum till realisation. The awards were not taken up in appeal to the Cooperative Tribunal, under S.82 of the Act, and they became final.

(3.) The petitioners did not pay the amounts due under the awards. The third respondent therefore issued notice dated September 9, 1986 calling upon them to pay an amount of Rs. 10207.90. Their movables were attached in proceedings in execution. The petitioners thereupon filed writ petition O.P.No. 6628 of 1986 in this Court, to quash the demand, and for directions restraining disposal of the attached movables. The original petition was disposed of at the preliminary stage, on September 29, 1986, by the judgment Ext. P2, with the observation that since the question of the petitioners' liability had become final, the questions raised were better decided under the Act and the Rules framed thereunder, and not in proceedings under Art.226. The petitioners had already filed representations before the Assistant Registrar of Cooperative Societies setting forth their grievances in the matter. This court therefore directed the Assistant Registrar to dispose of the said representations as expeditiously as possible. It was also observed that if substantial amounts were paid by the petitioners, the Assistant Registrar may consider whether the movables attached may not be returned to them.