IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR MONDAY, THE 28TH JULY 2008 / 6TH SRAVANA 1930 WP(C).No. 25761 of 2005(P) -------------------------- PETITIONERS: ------------ 1. BIJU PAUL, S/O. PAUL, CHOOLACKAL HOUSE, NEAR VIMAL JYOTHI CONVENT, ERUMATHALA.P.O., ALUVA. 2. RANI PAUL, W/O.PAUL, CHOOLACKAL HOUSE, NEAR VIMAL JYOTHI CONVENT, ERUMATHALA.P.O., ALUVA. BY ADV. SRI.PEARLY JOSE RESPONDENTS: ------------- 1. SECRETARY, KHADI AND VILLAGE INDUSTRIES BOARD, THIRUVANANTHAPURAM. 2. SPECIAL TAHSILDAR, REVENUE RECOVERY, ALUVA. 3. STATE OF KERALA, REP. BY ITS SECRETARY, DEPARTMENT OF RURAL DEVELOPMENT, SECRETARIAT, THIRUVANANTHAPURAM. BY ADV. SRI.K.P. HARISH, SC, KHADI BOARD FOR R1 R2 AND R3 BY G.P. SMT. SMITHA THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 28/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 APPENDIX PETITIONERS' EXHIBITS: EXT.P1 TRUE COPY OF THE ARTICLE IN MALAYALA MANORAMA DAILY EXT.P2 & P2(a) TRUE COPY OF THE REVENUE RECOVERY NOTICE ISSUED BY 2ND RESPONDENT NO. B1-620746/05 EXT.P3 TRUE COPY OF REPRESENTATION TO THE SECRETARY, DEPARTMENT OF RURAL DEVELOPMENT. 1ST RESPONDENT'S EXHIBITS: EXT.R1(a) COPY OF THE STATEMENT OF ACCOUNTS REGARDING THE RATE OF INTEREST TO THE LOAN. EXT.R1(b) COPY OF THE DEMAND NOTICE NO. KB. 6598/2002/R2 (CBC) DATED 5.12.2002 ISSUED BY THE SECRETARY, KHADI GRAMA VYVASAYA BOARD, TRIVANDRUM TO THE PETITIONER. EXT.R1(c) COPY OF THE DEMAND NOTICE NO. KB/6598/01/R2 (CBC) DATED 15.12.2003 EXT.R1(d) COPY OF THE LETTER NO. KB/6598/02/R2 DATED 2.12.05 ISSUED BY THE KERALA KHADI AND VILLAGE INDUSTRIES BOARD TO THE PETITIONER. TRUE COPY P.S. TO JUDGE C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- W.P.C. NO. 25761 OF 2005 -------------------------------------------- Dated this the 28th day of July, 2008 JUDGMENT Petitioner is challenging recovery proceedings for recovery of arrears due to the Khadi Board. This Court passed various interim orders directing the petitioner to pay substantial portion of the loan amount as the loan was admitted. However, standing counsel for the Khadi Board submitted that the petitioner has not complied with interim directions, even though some payments were made. Loan is admitted and the prayer in the Writ Petition is only for incentives through Ext.P3 representation filed by the petitioner. W.P. is accordingly closed directing the respondents to waive penal interest and default interest provided petitioner clears the entire arrears with compound interest if it is payable before within two months from now. If the petitioner undertakes to pay net liability as above, then on production of a copy of this judgment and letter of undertaking by the petitioner, which should be done within three weeks from now, first respondent will grant incentives as above and give a statement of balance liaibility after crediting the payments already made. If the 2 petitioner settles liability as above, no collection charges will be recovered from the petitioner. However, if no undertaking is furnished within three weeks from now, along with a copy of this judgment, respondents can proceed for recovery through recovery proceedings after two weeks from now. If the petitioner furnishes undertaking and then does not make payment within two months as stated above, then there will be direction to the petitioner to surrender his property to the second respondent for sale in public auction and the property will be sold in public auction after two months, and for failure on the part of the petitioner, respondents can move this Court for contempt. This judgment will not bar petitioner from availing better sheme, if any, introduced for settlement of liability under OTS scheme. (C.N. RAMACHANDRAN NAIR) Judge kk 3