The High Court of Kerala has admitted a petition filed by a group of sixteen depositors – most of them senior citizens – who approached the court alleging that the Kandala Service Co‑operative Bank had failed to release their matured fixed deposits and savings bank amounts despite repeated requests. The petitioners claim that many of them, aged above 60 and suffering from age-related ailments, had invested their life savings in various fixed-deposit schemes of the bank, some of which had matured and in several cases the value had doubled, yet the bank had allegedly refused to disburse the amounts. They have approached the High Court seeking relief, and a bench of the court admitted the petition after issuing notice to the respondents.
According to the petition, the depositors had earmarked their investments for medical treatment, repayment of personal loans, and essential living expenses. The amounts deposited by each petitioner were listed in the petition. Several fixed-deposit amounts ranged from approximately ₹1.7 lakh to over ₹16 lakh. The non-release of these matured amounts has allegedly placed the petitioners in a precarious situation. The petitioners contend that the failure by the bank to pay them constitutes a violation of their fundamental rights under the Constitution of India, including the guarantee of life and personal liberty, as the delay has endangered their ability to meet health and financial needs.
The petitioners further stated that the bank has been under scrutiny for alleged financial irregularities involving several crores of rupees. They referred to the fact that the Enforcement Directorate had raided the bank in relation to these alleged irregularities. The petition points out that while assets and money had been recovered and transferred to the bank by the agency, no concrete steps were taken to settle the dues of the depositors despite the bank’s compromised financial position. The petitioners rely on an earlier judgment of the Kerala High Court in which the court directed the timely disbursement of deposit amounts to similarly situated customers of the Kandala Service Co-operative Bank. They argue that since that judgment has been applied in several subsequent cases, they are entitled to similar relief.
The petition seeks the issuance of a writ of mandamus directing the bank and its administrative committee to disburse the full amount due to each petitioner within a fixed timeframe as determined by the court. They also seek interest on the amounts owed at the rate of 6 per cent per annum from the date of the judgment until payment is made. Additionally, they have prayed for direction to disburse the amounts from the assets recovered and transferred by the Enforcement Directorate, stating that those funds should be applied to settle the depositors’ dues pending final adjudication.
In the interim relief application, the petitioners sought immediate directions for the respondents to consider the 16th petitioner’s representation and release his deposit amount pending disposal of the writ petition. The bench admitted the writ petition and has posted the matter for further consideration on December 8.
The case has been titled Vijayan and Ors. v State of Kerala and Ors. (Writ Petition (Civil) No. 43801 of 2025). Counsel for the petitioners is Nikhil Sankar S. Counsel for the respondents are Jayasankar V. Nair and R. T. Pradeep. The High Court’s order to admit the petition is indicative of judicial recognition of the depositors’ grievance that fixed-deposit amounts with the bank have not been released despite maturity and the bank’s ongoing regulatory and enforcement complications.
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