IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR FRIDAY, THE 18TH JULY 2008 / 27TH ASHADHA 1930 WP(C).No. 17607 of 2005(U) -------------------------- PETITIONER: ------------ 1. SRI.T.T.RAGHAVAN, LAKE VIEW, MUTHUPILAKKAD WEST -690 570. 2. SRI.M.THANKACHAN, UPASANA, PULAMAN P.O., KOTTARAKKARA. BY ADV. SRI.SIBY MATHEW SHRI.PHILIP J.VETTICKATTU RESPONDENTS: ------------- 1. THE KERALA STATE FINANCIAL ENTERPRISES LTD., UNIT REGIONAL OFFICE, KOLLAM. 2. SPECIAL DEPUTY TAHSILDAR (R.R), THE KERALA STATE FINANCIAL ENTERPRISES LTD., KOLLAM. 3. SRI.P.SUDEVAN, SHEEJA SADANAM, MAMPALLIKUNNU, MEENAD, CHATHANNOOR. 4. SMT.K.SUDHARMA, SAJI SADANAM, MEENAD, CHATHANNOOR P.O. BY ADV. SRI.S.D.ASOKAN, SC. K.S.F.E. LTD. FOR R1 SHRI.M.SASINDRAN, SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 18/07/2008, THE COURT ON 18/07/2008 DELIVERED THE FOLLOWING: WPC NO. 17607/2005 APPENDIX PETITIONER'S EXHIBITS P1 : COPY OF SHOW CAUSE NOTICE DATED 23/11/2004 ISSUED BY R1. P2 : COPY OF DEMAND NOTICE UNDER SEC. 7 FORM NO.1 ISSUED BY DEPUTY COLLECTOR (RR), OFFICE OF SPECIAL DEPUTY TAHSILDAR (RR), KSFE LTD., KOLLAM TO 1ST PETITIONER. P3 : COPY OF DEMAND NOTICE UNDER SEC.7 FORM NO.1 ISSUED BY DEPUTY COLLECTOR (RR), OFFICE OF THE SPECIAL DEPUTY TAHSILDAR (RR), KSFE LTD., KOLLAM TO 2ND PETITIONER. //TRUE COPY// PA TO JUDGE. jg C.N.RAMACHANDRAN NAIR, J. ---------------------- WP(C) No.17607 of 2005 ------------------------------------ Dated, this the 18th day of July, 2008 J U D G M E N T Petitioners are admittedly sureties along with 3rd & 4th respondents for the loan availed by one Vimal Kumar, who is absconding. Even though, petitioners do not dispute liability as sureties, their contention is that other sureties also should be proceeded against. According to the learned standing counsel for the KSFE, recovery is initiated against all the sureties. Even though liability of sureties is joint and several, I feel on equitable grounds, recovery should be made on a proportionate basis, if the same is possible. Accordingly, this writ petition is disposed of directing petitioners to deposit 50% of Rs.2,37,150/- being the amount payable under the OTS scheme within a period of six weeks from now. If amounts are withheld by KSRTC, petitioner can produce copy of this judgment and request the employer, i.e. KSRTC, to release payment to cover the above amount. KSRTC will retain the balance DCRG and other benefits for three months from now. In between, there will be direction to 2nd respondent to proceed for immediate recovery against other sureties, i.e. respondents 3 & 4. WP(C) No.17607/2005 -2- It will be open to the petitioners to collect information pertaining to the properties of respondents 3 & 4 and furnish the same to 2nd respondent for easy recovery from them. Recovery from them should also be limited to 50% of the balance liability under OTS scheme i.e. of Rs.2,37,150/- without any future interest. If equal amount is recovered from respondents 3 & 4, then the recovery proceedings against petitioners should be dropped and the withheld amounts should be released to them by KSRTC subject to the scheme for payment to retired employees. However, if recovery is not possible from respondents 3 & 4 for want of assets, then being sureties entire amount can be recovered from petitioners. It should be done after 2nd respondent sends a failure report to the KSRTC. Similarly, if petitioners or any sureties are able to get any details of assets of the defaulter, they can furnish such information to the KSFE. In such case, recovery should be immediately initiated against the defaulter’s assets by the KSFE. The writ petition is disposed of as above. (C.N.RAMACHANDRAN NAIR, JUDGE.) jg