IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR THURSDAY, THE 2ND NOVEMBER 2006 / 11TH KARTHIKA 1928 WP(C).No. 30951 of 2004(I) -------------------------- PETITIONER: ------------ ALIAS PAULOSE, S/O.PAULOSE, AGED 52 YEARS, THALANIKKUNNEL, POTHANIKADU, AYAMKARA, PAINGOTTOOR P.O. KOTHAMANGALAM TALUK. BY ADV. SRI.M.D.SASIKUMARAN SRI.P.A.ISMAIL RESPONDENTS: ------------- 1. STATE OF KERALA, REP. BY THE CHIEF SECRETARY, SECRETARIAT, TRIVANDRUM. 2. THE MANAGER, STATE BANK OF INDIA, POTHANIKADU BRANCH, POTHANIKADU. 3. THE DISTRICT COLLECTOR, COLLECTORATE, ERNAKULAM, KAKKANADU. 4. THE TAHSILDAR, KOTHAMANGALAM, ERNAKULAM DISTRICT. 5. THE VILLAGE OFFICER, KADAVOOR VILLAGE OFFICE, KOTHAMANGALAM TALUK. R2 BY ADV. SRI.K.K.CHANDRAN PILLAI SRI.R.SHYAM KUMAR THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 02/11/2006, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 APPENDIX PETITIONER'S EXHIBITS: EXT.P1 TRUE PHOTOCOPY OF MEDICAL CERTIFICATE ISSUED FROM NEDUMECHALIL TRUST HOSPITAL DATED 23.5.2000 EXT.P2 & P2(a) TRUE PHOTOCOPIES OF DEMAND NOTICE NO. RR NO. B14 30/98/04/D/N.342/04 AND NO. R3 5517/2004/BL RESPECTIVELY. EXT.P3 TRUE PHOTOCOPY OF THE LAWYER NOTICE SENT BY THE 2ND RESPONDENT DATED 1.7.2004 RESPONDENTS' EXHIBITS: NIL. TRUE COPY P.S. TO JUDGE. C.N.RAMACHANDRAN NAIR,J. -------------------------------------------- W.P.C.NO. 30951 OF 200 -------------------------------------------- Dated this the 2nd day of November, 2006 JUDGMENT Petitioner availed business loan from the second respondent. When default was committed, revenue recovery proceedings were initiated for recovery of the instalment amounts from the petitioner. There is no dispute about the loan availed. Even though petitioner has a case that exhorbitant rate of interest is charged and revenue recovery is not maintainable, small business loans and loans given under self employment scheme are priority loans which could be recovered through revenue recovery proceedings is the case put forward by counsel for the second respondent. When the W.P. was admitted this Court granted conditional stay directing payment of Rs. 25,000/- by the petitioner. It is not known whether petitioner has made such payment, and if the petitioner has made payment of Rs. 25,000/- then there will be direction to the Bank to completely waive penal interest and allow the petitioner to settle the balance arrears with agreed rate of interest, if the petitioner makes payment of entire balance arrears with interest on 2 or before 31.12.2006. If payment is not made as above, then waiver of penal interest will automatically stand vacated and respondents will be free to proceed for recovery of the arrears with full interest. W.P. is disposed of as above. (C.N.RAMACHANDRAN NAIR) Judge 3