IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR MONDAY, THE 21ST JULY 2008 / 30TH ASHADHA 1930 WP(C).No. 7791 of 2005(C) ------------------------- PETITIONER(S): --------------- P.SURABI,MALIAKKAL PARAMBIL HOUSE, P.O.KUZHIMANNA,MALAPPURAM DIST. BY ADV. SRI.P.VIJAYAKUMAR RESPONDENT(S): --------------- 1. NATIONAL SMALL INDUSTRIES CORPN.LTD., REP. BY SENIOR BRANCH MANAGER,S-67 GCDA COMMERCIAL COMPLEX,MARINE DRIVE,SHAMUGHAM ROAD,COCHIN. 2. K.P.KAMALAKARAN,SENIOR BRANCH MANAGER, S-67 GCDA COMMERCIAL COMPLEX,MARINE DRIVE, SHAMUGHAM ROAD,COCHIN. ADV. SRI.K.P.DANDAPANI (SR.) THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 21/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC NO.7791/2005 APPENDIX PETITIONER'S EXHIBITS P1(A) & P1(B) : COPY OF THE QUOTATION DATED 16/11/90 & BROCHURES OF THE MACHINERY. P2 : COPY OF THE FINAL QUOTATION DATED 18/03/91 GIVEN BY THE PETITIONER TO THE 1ST RESPONDENT. P3 : COPY OF THE MEMORANDUM OF AGREEMENT DATED 26/02/1991 EXECUTED BETWEEN THE PETITIONER AND 1ST RESPONDENT. P3(a) : COPY OF THE STATEMENT OF PARTICULARS OF INSTALLMENT FORMING PART OF P3 AGREEMENT. P4 : COPY OF THE DETAILS OF PAYMENT MADE BY THE PETITIONER. P5 : COPY OF the MEMO DATED 17/02/2005 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. RESPONDENT'S EXHIBITS R1(a) : COPY OF THE FINANCIAL STATEMENT DRAWN ON 31/03/2005. R1(b) : COPY OF THE STATEMENT GIVEN BY THE FASALALI AND MUHAMAD SAJIR P.K. DATED 24/02/2005. //TRUE COPY// PA TO JUDGE. jg C.N.RAMACHANDRAN NAIR, J. ------------------------- W.P.(C) No. 7791 of 2005 --------------------------------- Dated, this the 21st day of July, 2008 J U D G M E N T Even though petitioner pleaded limitation as a ground to challenge recovery proceedings, respondents have stated that installment was paid on 28/02/2005 and consequently limitation is got over through acknowledgment of debt in the form of part payment. First respondent is a Government of India undertaking, which gave a loan under the hire purchase scheme to petitioner to purchase machinery for the saw mill. The total amount payable under the loan agreement was Rs.1,06,812/-. However, petitioner has stated to have paid Rs.81,219/- including the amount paid under the interim orders of this Court. The only challenge against recovery proceedings is limitation and in view of part payment, limitation will not survive. Even though learned counsel for petitioner submitted that part payment itself was made beyond six years from payment of the last installment, I do not think this Court can help the petitioner to get over the liability on the ground of limitation. However, in view of the substantial payment and since stay was granted by this Court, I feel petitioner is entitled to waiver of complete penal interest, provided, balance arrears excluding penal WP(C) No.7791/2005 -2- interest is paid on or before 31/10/2008. Second respondent is directed to give a statement of liability by reckoning only contract rate of interest on the default amount for petitioner to settle liability. However, if payment is not made as above, full liability can be recovered. Petitioner will produce copy of the judgment for giving statement by 2nd respondent for settling liability as above. The writ petition is disposed of as above. (C.N.RAMACHANDRAN NAIR, JUDGE) jg