IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE V.GIRI THURSDAY, THE 7TH FEBRUARY 2008 / 18TH MAGHA 1929 WP(C).No. 3892 of 2008(L) ------------------------- PETITIONER: ------------ V.SATHISH BABU, S/O.S.VISWAMBARAN, SHANKARA SHILPAM, HOUSE NO:14/483-D, AYYANTHOLE P.O., THRISSUR 680 003. BY ADV. SRI.WILSON URMESE RESPONDENTS: ------------- 1. THE GENERAL MANAGER, DISTRICT INDUSTRIES CENTRE, AYYANTHOLE P.O., THRISSUR PIN 680 003. 2. THE DEPUTY TAHSILDAR (RR), THRISSUR-20. BY ADV. SR.GOVERNMENT PLEADER SRI. MATHEW GEORGE VADAKKEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/02/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: V.GIRI,J. ------------------------- W.P ( C) No. 3892 of 2008 -------------------------- Dated this the 7th February, 2008 J U D G M E N T Petitioner was the Managing Director of Ms/.Vanchinad Drop Stamping Pvt. Ltd., which was apparently established for the manufacture and supply of closed die steel forgings. According to the petitioner, the Company had availed a term loan and working capital from the State Bank of Travancore, Thrissur. Also they had availed a margin money loan from the District Industries Centre, Thrissur. The company defaulted payment of the margin money loan and therefore steps were taken by the 1st respondent for recovery of the said amount. Petitioner was served with Exhibit P3 notice under the Revenue Recovery Act requiring him to pay an amount of Rs.3,93,993/- towards the loan arrears of the Company. Exhibit P3 is under challenge in this writ petition. 2. On instruction, the learned Senior Government Pleader submits that the margin money loan was disbursed by the Bank from where the Company had availed of a term loan. W.P ( C) No. 3892 of 2008 2 If the petitioner had stood as a guarantor in relation to the Company, the same relationship will continue vis-a-vis with District Industries Centre also. This might be correct, but it will depend upon of the terms of the agreement under which margin money loan was advanced to the Company. At any rate, it is a matter for inquiry. In the result, after hearing counsel on both sides, this writ petition is disposed of in the following terms: i) Petitioner shall file a representation before the 1st respondent pointing out the above aspects. Petitioner may also indicate the availability of sufficient assets with the Company or any other Directors who are situated in a fiduciary relationship as regards the Company. Representation shall be filed within a period of one month from today. ii) On receipt of the said representation, the 1st respondent shall issue notice to other Directors of the Company and take a decision with specific reference to the question as to whether the petitioner had stood as guarantor for the margin money loan availed by M/s.Vanchinad Drop Stamping Pvt. Ltd. If there is any reason to treat the petitioner also as a defaulter W.P ( C) No. 3892 of 2008 3 in his personal capacity, that shall also be indicated in the orders to be passed by the 1st respondent. Further proceedings pursuant to Exhibit P3 in so far as the petitioner is concerned shall be kept in abeyance until a decision is taken by the 1st respondent, as aforementioned. (V.GIRI, JUDGE) ma W.P ( C) No. 3892 of 2008 4 K.THANKAPPAN,J CRL.A. NO.92 OF 1999 ORDER 25th May, 2007