IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN THURSDAY, THE 23RD JUNE 2011 / 2ND ASHADHA 1933 WP(C).No. 38223 of 2010(C) -------------------------- PETITIONER: --------------- M.K.KARUNAKARAN, AGED 75 YEARS, THANNIPPARA HOUSE, KANGAZHA, CHANGANACHERRY, KOTTAYAM DISTRICT. BY ADV. SRI.N.N.SASI RESPONDENTS: --------------- 1. KANGAZHA SERVICE CO-OP. BANK LTD., NO.1145, KANGAZHA, CHANGANACHERRY, KOTTAYAM DISTRICT, REP. BY ITS SECRETARY. *ADDITIONAL R2 IMPLEADED 2. THE REGISTRAR, REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM (ADDL.R2 IS IMPLEADED AS PER ORDER DATED 16.2.2011 IN I.A. NO.2409 OF 2011) ADV. SRI.P.N.MOHANAN FOR R1 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 23/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No. 38223/10 APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : COPY OF INTERIM ORDER IN OP NO.7906/98 OF THIS COURT. EXT.P2 : RECEIPT OF DEPOSIT DT.13.5.98 ISSUED BY THE RESPONDENT EXT.P3 : FINAL ORDER DT. 14.8.2008 OF THE KERALA STATE DEBT RELIEF COMM. EXT.P4 : LETTER DT.23.7.09 ISSUED BY THE RESPONDENT TO THE PETITIONER EXT.P5 : REPRESENTATION DT.12.8.2010 SENT BY THE PETITIONER TO THE RESPONDENT. EXT.P6 : REPRESENTATION DT.12.10.2010 SENT BY THE PETITIONER TO THE RESPONDENT. EXT.P7 : COPY OF REPRESENTATION DT. 3.1.2011. RESPONDENT'S EXHIBITS: NIL //TRUE COPY// P.A. TO JUDGE vps P.N.RAVINDRAN, J. --------------------------- W.P.(C) No. 38223 OF 2010 -------------------------- Dated this the 23rd day of June, 2011 J U D G M E N T The petitioner availed two loans from the first respondent bank, one in the year 1985-1986 and the other 1986-1987. The first loan was for Rs.5,000/- and the second loan for Rs.3,000/-. The petitioner did not repay even a single paise. The bank was therefore constrained to file arbitration cases, ARC Nos.1847 and 1859 of 1989. The Arbitrator passed awards directing the petitioner herein to pay the principal amount together with interest. The petitioner did not even thereafter repay the loans. The bank thereupon took steps to execute the awards. At that stage, the petitioner filed two revision petitions, R.P. Nos. 40 and 41 of 1998 before the Kerala Co-operative Tribunal, Thiruvananthapuram. He thereafter filed O.P. No.7906 of 1998 in this Court. By Ext.P1 order passed on 24.4.1998 in C.M.P. No.13666 of 1998 in O.P. No.7906, this Court stayed the execution of the awards in the event of the petitioner depositing the sum of Rs.8,000/- within one month from that date. The petitioner accordingly remitted the sum of Rs.8,000/- on 13.5.1998. Taking note of the fact that the review petitions filed by the petitioner before the Kerala Co-operative Tribunal are pending, this Court disposed of O.P. No.7906 of 1998 by judgment delivered on 24.6.1998 with a direction to the Kerala Co-operative Tribunal to pass orders on the review WPC No.38223/2010 2 petitions within a period of six weeks. This Court also directed that till the Kerala Co-operative Tribunal takes a decision on the review petitions, the execution proceedings shall be kept in abeyance. 2. It appears, even thereafter the petitioner did not repay the debt. Years later, when the Kerala State Farmers Debt Relief Commission, Thiruvananthapuram (hereinafter referred to as 'the Commission' for short) was established under the Kerala State Farmer's Debt Relief Commission Act, 2006, the petitioner filed an application before the said Commission seeking debt relief in terms of the Act. By then, the amount due to the bank had gone up to Rs.30,000/-. By Ext.P3 order passed on 14.8.2008, the Commission granted debt relief to the tune of Rs.22,500/- and directed the petitioner to pay the balance sum of Rs.7,500/- on or before 31.3.2009. The petitioner accordingly remitted the sum of Rs.7,500/- and the loan account was closed. 3. This writ petition is filed contending that though the loan account was closed, till date, the sum of Rs.8,000/- deposited by the petitioner on 13.5.1998 pursuant to Ext.P1 interim order passed by this Court in C.M.P. No.13666 of 1998 in O.P. No.7906 has not been refunded. The petitioner therefore seeks a direction to the first respondent to refund the sum of Rs.8,000/- deposited by him on 13.5.1998 pursuant to Ext.P1 interim order passed by this Court in C.M.P. No.13666 of 1998 in O.P. No.7906 with WPC No.38223/2010 3 interest at 9% per annum from 13.5.1998. 4. I heard Sri.N.N.Sasi, learned counsel appearing for the petitioner and Sri.P.N.Mohanan, learned counsel appearing for the first respondent.. The learned counsel for the first respondent did not dispute the petitioner's submission that in terms of Ext.P3 order passed by the Commission the petitioner had remitted the sum of Rs.7,500/- before 31.3.2009 and that the loan account was accordingly closed. He submitted that the first respondent is yet to get reimbursement of the sum of Rs.22,500/- from the State Government. He also submitted that notwithstanding that fact, the bank will refund to the petitioner the sum of Rs.8,000/- deposited by him on 13.5.1998 pursuant to Ext.P1 interim order passed by this Court in C.M.P. No.13666 of 1998 in O.P. No.7906 within one week from today. 5. The learned counsel appearing for the petitioner however pressed for payment of interest on the said amount from 13.5.1998. The materials on record disclose that the petitioner who had availed two loans to the tune of Rs.8,000/- way back in the years 1985-1986 and 1986-1987, got a full discharge of the debt by paying the sum of Rs.7,500/- in the year 2009. In other words, he repaid only a lesser sum than what he had availed as loan. On the date on which the Commission granted relief, the amount payable by him was Rs.30,000/- after the bank had waived the sum of Rs.8,000/- voluntarily. Though the arbitration cases were filed in the year 1989 and WPC No.38223/2010 4 steps were taken to execute the awards, the petitioner avoided repayment of the debt for nearly 20 years. The bank would have certainly incurred expenditure to institute the arbitration cases and to defend the writ petition filed in this Court. The bank would have also incurred expenditure to take steps to execute the awards. In such circumstances, if the bank is directed to pay interest on the sum of Rs.8,000/- deposited by the petitioner on 13.5.1998 pursuant to Ext.P1 interim order, it will be grossly unjust and inequitable. I therefore find no grounds to award interest on the sum of Rs.8,000/- deposited by the petitioner on 13.5.1998. The prayer for interest is accordingly declined. In the light of the facts stated above, I dispose of the writ petition with a direction to the first respondent bank to pay back to the petitioner the sum of Rs.8,000/- deposited by him on 13.5.1998 without interest within one week from today. P.N.RAVINDRAN, (JUDGE) vps