IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R. RAMACHANDRA MENON THURSDAY, THE 2ND JUNE 2011 / 12TH JYAISHTA 1933 WP(C).No. 21856 of 2003(B) --------------------------------------- PETITIONER: ------------------- P.T.MATHEW, S/O. THOMAS, PULLATTU HOUSE, AMBARA NIRAPPEL P.O., BHARANANGANAM, MEENACHIL TALUK, KOTTAYAM DISTRICT. BY ADVS. SRI.ABRAHAM MATHEW, SMT.MERLIN MATHEWS. RESPONDENTS: ------------------------ 1. STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF KHADI AND VILLAGE INDUSTRIES, SECRETARIAT, TRIVANDRUM 2. THE KERALA KHADI AND VILLAGE INDUSTRIES BOARD, VANCHIYOOR, THIRUVANANTHAPURAM, REPRESENTED BY ITS SECRETARY 3. THE PROJECT OFFICER, DISTRICT KHADI AND VILLAGE INDUSTRIES OFFICE, KOTTAYAM. 4. THE MEENACHIL CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LTD., NO.K.197, PALA, KOTTAYAM DISTRICT, KERALA. R1 BY GOVERNMENT PLEADER SRI. M.H.HANILKUMAR, R4 BY BY ADV. SRI.VIJU ABRAHAM. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 02/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C). NO.21856/2003: JUDGMENT Learned counsel for the petitioner submits that the matter has become infructuous. The writ petition is dismissed as infructuous. Sd/- 02-06-2011 P.R. RAMACHANDRA MENON, JUDGE True copy P.A. To Judge Thottathil B. Radhakrishnan, J. =================================== W.P.(C)No.21856 of 2003-B =================================== Dated this the 5th day of July, 2007. JUDGMENT Petitioner applied for a loan for bee-keeping. The fourth respondent Co-operative Bank issued letter dated 26-12-2000 to the Project Officer of the Khadi and Village Industries Board stating that it has no objection in sanctioning the loan and requested the Project Officer to make necessary arrangements to recommend for the loan. On 24-1-2001, the Project Officer issued the formal order of recommendation whereby the petitioner was entitled 25% to 30% of project cost as margin money grant for bee-keeping. The Bank had sanctioned the loan on 22-1-2001. On 31- 1-2001, the Bank wrote to the Project Officer stating that the loan was sanctioned on 22-1-2001 and that the first instalment of Rs.40,000/- is being released on 31-1-2001. This means that, though the formal sanctioned order of loan was made by the Bank on 22-1- 2001, it released even the first instalment only after receipt of the Project Officer's recommendation on 24- WPC21856/2003 -:2:- 1-2001. 2. The Khadi Board takes the stand that because the Bank granted the loan a day before the issuance of Ext.P2 communication by the Project Officer, the petitioner is not entitled to margin money grant. This stand is wholly unsustainable. It is arbitrary and perverse for the simple reason that the loan was availed by the petitioner by getting the first instalment only on 31-1-2001 after the Project Officer had recommended the grant of loan with margin money grant. Not only that, the issuance of formal orders granting the loan on 22-1-2001 was made by the Bank after it had written Ext.P1 letter to the Project Officer and still further, the sanction of loan was not immediately followed by release of the first instalment, which, as noticed above, was only after the Project Officer's communication was obtained by the Bank. Under such circumstances, the Khadi Board is liable to make available the margin money grant in terms of Ext.P2 order, as if that order was issued on WPC21856/2003 -:3:- 24-1-2001. Hence, any action taken by the fourth respondent Bank against the petitioner could only be after giving due credit of the amounts that would be due from the second respondent Khadi Board in terms of Ext.P2 decision of the Project Officer taking the date of that decision as 24-1-2001 itself. This means, any interest accruing on account of the delayed release of the margin money grant, cannot be fastened on the petitioner and such amounts have to be paid by the second respondent Khadi Board along with the margin money amount to the Bank. The second respondent will be liable to pay to the fourth respondent all such interest as would accrue on the margin money amount till the date of actual credit of such amount to the account of the fourth respondent. The second respondent is directed to do so within a period of one month from the date of receipt of a copy of this judgment. The Bank will give due credit of such amounts and will thereupon claim from the petitioner only such balance amount as may be due. WPC21856/2003 -:4:- Writ petition is allowed with the above directions. No costs. Thottathil B.Radhakrishnan, Judge. sl. WPC21856/2003 -:5:- Thottathil B. Radhakrishnan, J. =================================== W.P.(C)No.21856 of 2003-B =================================== JUDGMENT Dated:5-7-2007