Sukesh C P vs The Calicut Town Service Co-Operative Bank Limited & Anr.

The petitioner availed credit facilities from the respondent Bank. On default being committed, the Bank initiated proceedings under Section 69 of the Kerala Co-operative Societies Act, 1969 and obtained an award determining the liability of the petitioner. On the award being put to execution before the Subordinate Judges Court IIA, Kozhikode, the petitioner is before this Court stating that the respondent Bank may be directed to consider Ext.P3 request submitted by the petitioner for One Time Settlement under the One Time Settlement scheme now in force (Ashwas – 2026).

Heard Adv.Akshay Venu for the 1^st respondent Bank. The learned counsel appearing for the respondent Bank submits that the sale of the property of the petitioner is scheduled today (28.09.2026). It is submitted that the One Time Settlement scheme is in force only till 30.09.2026 and the petitioner has preferred Ext.P3 only on 24.09.2026.

The learned counsel appearing for the petitioner would submit that an amount of Rs.8 lakhs has been remitted towards the loan liability (as is evident from Ext.P2) on 16.09.2026. It is submitted that the amount can be straight away adjusted against any amount that may be offered as One Time Settlement.

Having heard the learned counsel for the petitioner and the learned counsel appearing for the respondent Bank, I am of the opinion that this writ petition can be disposed of directing the respondent Bank to consider Ext.P3 under the One Time Settlement scheme now in force (Ashwas – 2026) and intimate to the petitioner the amount to be remitted by the petitioner under the One Time Settlement scheme. Since it is stated that the amount of Rs.8 lakh was remitted on behalf of the petitioner by one Prabeesh E and the same is kept in a suspense account, it is further directed that after arriving at the amount of One Time Settlement, the amount of Rs.8 lakhs may be adjusted forthwith against the amount of One Time Settlement. It is also made clear that if the petitioner fails to remit the balance amount to be remitted under the One Time Settlement scheme, within the time permitted by the Bank, it will be open to the respondent Bank to continue with the recovery proceedings initiated against the petitioner. In order to enable consideration of the matter as above, it is also directed that any sale of the property of the petitioner, which is scheduled today (28.09.2026) shall not be confirmed for a period of one month. The petitioner shall appear before the Managing Director of the 1^st respondent Bank before 05.00 pm tomorrow (29.09.2026) along with a copy of this writ petition and a copy of this judgment if the petitioner wishes to avail the benefits of the One Time Settlement scheme.

Writ petition is ordered accordingly.