IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC TUESDAY, THE 8TH FEBRUARY 2011 / 19TH MAGHA 1932 WP(C).No. 12053 of 2010(F) -------------------------- PETITIONER(S): ----------------------- PETER JOSEPH, AGED 37 YEARS, S/O.JOSEPH, PUNCHAPUTHUSSERY HOUSE, KIZHAKKAMBALAM P.O., ERNAKULAM DISTRICT, PIN-683 562. BY ADV. SRI.PAUL K.VARGHESE RESPONDENT(S): ----------------------- 1. THE KERALA FINANCIAL CORPORATION, THIRUVANANTHAPURAM. REPRESENTED BY MANAGING DIRECTOR. 2. THE BRANCH MANAGER, THE KERALA FINANCIAL CORPORATION, S.N.D.P. BUILDING, P.P.ROAD, PERUMBAVOOR, ERNAKULAM DISTRICT, KERALA- 683 542. ADV. SRI.M.M.SAYED MUHAMMED, SC, KFC FOR R1-2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 08/02/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC NO.12053/10 APPENDIX PETITIONER'S EXHIBITS EXT.P1: A TRUE COPY OF THE NOTICE ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER DATED 2.1.2010. EXT.P2: THE TRUE COPY OF THE LETTER ISSUED BY THE 2ND RESPONDENT DATED 16/3/2010. EXT.P3: A TRUE COPY OF REPRESENTATION SUBMITTED BY THE PETITIONER TO THE 1ST RESPONDENT DATED 18.3.2010. EXT.P4: A TRUE COPY OF THE NOTICE ISSUED BY THE RESPONDENTS TO THE PETITIONER DATED 25.3.2010. //TRUE COPY// P.A. TO JUDGE Rp ANTONY DOMINIC, J. ================ W.P.(C) NO. 12053 OF 2010 ===================== Dated this the 8th day of February, 2011 J U D G M E N T Petitioner had availed of a loan of ` 80,00,000/- from the KFC. Default was committed and he applied for the benefit of one time settlement scheme. His request was considered and he was directed to pay an amount of ` 1,35,00,000/- on or before 28/2/2008. Petitioner could not pay the amount as directed, as a result of which, one time settlement allowed was cancelled. Thereafter, on the request of the petitioner, the benefit was restored on condition that the petitioner pays 12% interest on the defaulted amount. Accordingly, amount due under the OTS scheme was paid by the petitioner by 26/11/2009. KFC demanded an additional payment of ` 18,48,960/- towards interest. It is this demand which is under challenge in this writ petition. 2. Standing counsel appearing for respondents submits that benefit of one time settlement scheme was extended to the petitioner on condition that the amount is paid by the petitioner before 28/2/2008. It is stated that on the failure of the petitioner WPC No. 12053/10 :2 : to pay the amount, KFC cancelled the benefit and the benefit was restored on his application subject to the condition that the petitioner pays interest at the rate of 12% on the defaulted amount. It is stated that the demand now raised and which is contested by the petitioner represents the amount towards interest. It is also pointed out that, as on 01/04/2010, the amount due from the petitioner is ` 19.23 lakhs. 3. Admittedly default was committed by the petitioner to pay the amount due under the one time settlement scheme. That was restored to the petitioner subject to the condition that the petitioner pays simple interest at 12%. This condition was accepted by the petitioner and the amount due to the Corporation was paid. If that be so, petitioner cannot avoid the liability of paying the interest on the defaulted amount. That apart, it being a matter of contract, this Court will not be justified in interfering with the demand made exercising its powers under Article 226 of the Constitution of India. Writ petition fails and is dismissed. ANTONY DOMINIC, JUDGE Rp