The grievance of the petitioners is that Ext.P5 award has been passed without giving an opportunity to the petitioners to place and prove their case. According to the petitioners, the arbitration case had been posted on 25.3.2010. However, they were a little late in reaching the Court and therefore could not file their written statement in time. However, referring to Ext.P4 it is contended by the counsel that they have already filed their written statements. In their absence Ext.P5 award was passed ex parte. Though they submitted a petition for setting aside the ex parte award the same has been rejected as per Ext.P6. According to the counsel for the petitioners there was an earlier award which has been set aside by the Kerala Co-operative Tribunal as per Ext.P3 order of the Tribunal. The Tribunal had remanded the matter for WPC 21124/2011 2 being reconsidered. It was thereafter that Ext.P5 award was passed. The petitioners seek for an opportunity to contest the case on the basis of the written statement already filed.
2. Adv.Subash Chandra Bose appears for the first respondent Bank. According to the counsel the petitioners are defaulters in respect of a loan that they had availed in the year 1997. They have not paid any amount towards repayment of the loan thereafter. Only an amount of 40,000/- (Rupees forty thousand only) was paid as a condition for the grant of an interim order imposed by the Co-operative Tribunal. Giving credit for the said amount, a balance amount of 2,52,000/- (Rupees two lakhs fifty two thousand only) is due and payable by them as on 3.8.2013. According to the counsel, the petitioners have no valid contentions to offer and no prejudice has been caused to them by Ext.P5 award. According to the counsel, after the remand, the matter had been taken up on 30.10.2009, after issuing notice to all the parties. The petitioners were granted time for filing written WPC 21124/2011 3 statements up to 11.2.2010. Since they were absent on the said date, the matter had been adjourned to 11.3.2010. On the said date also the petitioners were not present. Therefore, they were set ex parte and the case was posted to 25.3.2010. It was on the said date that Ext.P5 award was passed. Therefore, it is contended that the attempt of the petitioners is only to protract proceedings.
3. Heard. It is not in dispute that the petitioners had availed the loan from the first respondent bank. The loan amount was 50,000/- (Rupees fifty thousand only) in the year 1997. Though it is contended that substantial amounts were paid towards the loan amount, the petitioners have not produced any document to evidence such payment. The counsel for the first respondent does not dispute that the petitioners have paid an amount of 40,000/- (Rupees forty thousand only) pursuant to the interim order issued by the Co-operative Tribunal. I notice that the petitioners have filed their written statement, Ext.P4. What remains is only the grant WPC 21124/2011 4 of an opportunity to the petitioners to adduce any evidence that they may choose to let in. Considering the fact that Ext.P5 has been passed ex parte, I am of the view that the petitioners can be given one further chance to contest the matter. However, such an opportunity can be granted only subject to making a substantial payment towards the amount that is remaining payable to the first respondent. I notice that the Arbitration Case, ARC 5140/1998 has been pending for the past 15 years. Therefore, it is also necessary that the proceedings are completed, expeditiously and in a time bound manner.
In view of the above this writ petition is disposed of with the following directions:-
i) Ext.P5 award and Ext.P8 order are set aside on condition that the petitioner remits an amount of 1,00,000/- (Rupees one lakh only) towards the amount due to the first respondent bank within a period of two months from today. WPC 21124/2011 5
ii) If the amount stipulated above is paid, the second respondent shall take up ARC 5140/1998 on priority basis and shall dispose of the same on the merits after affording an opportunity to the petitioners to adduce evidence. Final orders shall be passed in the matter untrammelled by any of the observations in the previous proceedings, as expeditiously as possible and at any rate within a period of three months of the date of deposit of the amount stipulated above.
iii) If the deposit is not made as stipulated above it is made clear that the petitioners shall lose the benefit of the directions issued above and the bank shall be at liberty to proceed with the matter in accordance with law.
Sd/-