IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 5TH NOVEMBER 2009 / 14TH KARTHIKA 1931 WP(C).No. 25265 of 2009(C) -------------------------- PETITIONER(S): --------------- 1. P.N.ANANDAVALLY, PARAKKARA VEEDU, KOTTUKAL VILLAGE, NEYYATTINKARA TALUK. 2. SUNIL PRABHANANDALAL, PARAKKARA VEEDU, KOTTUKAL VILLAGE, NEYYATTINKARA TALUK. 3. SUDHIL PRABHANANDALAL, PARAKKARA VEEDU, KOTTUKAL VILLAGE, NEYYATTINKARA TALUK. 4. SUJIL PRABHANANDALAL, PARAKKARA VEEDU, KOTTUKAL VILLAGE, NEYYATTINKARA TALUK. BY ADV. SRI.G.SUDHEER RESPONDENT(S): --------------- THANNIMOODU RURAL HOUSING CO-OPERATIVE SOCIETY LTD. NO.T.141, KOTTUKAL, NEYYATTINKARA TALUK, REPRESENTED BY ITS SECRETARY. ADV. SRI.B.S.SWATHY KUMAR FOR R1 SMT.P.A.ANITHA FOR R1 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 05/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PETITIONERS' EXHIBITS: W.P.C.NO. 25265/2009. -------------------------------------------------------------------- EXT.P1 TRUE COPY OF MORTGAGEDEED DT. 7-5-1986. EXT.P2 AWARD DT. 24-2-1996. EXT.P3 PLAINT DT. 29-9-1993. EXT.P4 AWARD DT. 29-11-2006 IN A.R.C.444/2002. EXT.P5 JUDGMENT DT. 29-5-2009 [TRUE COPY] P.S TO JUDGE. S. Siri Jagan, J. =-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-= W. P (C) No. 25265 of 2009 =-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-= Dated this, the 5th November, 2009. J U D G M E N T The petitioners are legal heirs of one Sri. Prabhakaran, who availed of a housing loan from the respondent. According to the petitioners, as per the terms of Ext. P1 mortgage deed executed for availing of the loan, the respondent was bound to insure the principal debtor and surety under the statutory group insurance scheme. The petitioners would contend that since the respondent failed to do so committing breach of the conditions of Ext. P1 and the said Prabhakaran died in 1988, the loan amounts cannot be recovered. The bank obtained Ext. P2 award in ARC 3276/1993 passed in proceedings under Section 69 of the Kerala Co-operative Societies Act for recovery of the loan amount. Although the petitioners filed an appeal before the Tribunal, the Tribunal, by Ext. P5 order, permitted the bank to recover an amount of Rs.91,721.99 with 12% interest on Rs. 48,357/- from 1-1-2003. However, the petitioners were permitted to repay the amounts in instalments of Rs. 10,000/- p.m. The petitioners are challenging Exts.P2 and P5 orders. 2. I have heard the learned counsel for the bank also. 3. The petitioners do not dispute the liability. Their only contention is that because the bank defaulted in insuring the principal debtor as per the loan agreement, the bank is not entitled to recover the amount. 4. That question has been specifically considered by the arbitrator as well as the Tribunal and it was found that the non- W.P.C. No. 25265/09 -: 2 :- renewal of the insurance was on account of the default of the deceased himself. I do not find any perversity in that finding. Therefore, there is no merit in the challenge against Ext. P5. Accordingly, the writ petition is disposed of confirming the direction in Ext. P5 to the petitioners to pay off the amounts in instalments of Rs. 10,000/- p.m. Sd/- S. Siri Jagan, Judge. Tds/