IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR THURSDAY, THE 22ND MAY 2008 / 1ST JYAISHTA 1930 WP(C).No. 15023 of 2005(L) -------------------------- PETITIONER: ------------ UCO BANK, KOLLAM BRANCH, BEACH ROAD, KOLLAM, REP. BY ITS SENIOR MANAGER, N.BALACHANDRAN. BY ADV. SRI.K.G.BAIJU SRI.S.SANTHOSH KUMAR RESPONDENTS: ------------- 1. THE STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, REVENUE DEPARTMENT, SECRETARIAT,THIRUVANANTHAPURAM 2. THE DISTRICT COLLECTOR, KOLLAM. 3. THE TAHSILDAR (R.R), TALUK OFFICE, KOLLAM. 4. DOLLY ANTONY, PROPRIETRIX, NOBLE PRINTERS & PUBLISHERS, SANADU VILLA, KOLIKOLLOOR, KOLLAM(DELETED) R4 IS DELETED FROMS THE PARTY ARRAY AT THE RISK OF THE PETITIONER VIDE ORDER DATED 28.6.2006 ON I.A. 8675 OF 2006 R1 TO R3 BY G.P. SRI. SABU THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22/05/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 APPENDIX PETITIONER'S EXHIBITS: EXT.P1 TRUE COPY OF LETTER DATED 3.5.1999 OF THE FOURTH RESPONDENT TO THE PETITIONER. EXT.P2 TRUE COPY OF LETTER DATED 28.2.2005 OF THE THIRD RESPONDENT TO THE PETITIONER. EXT.P3 TRUE COPY OF POSSESSION CERTIFICATE DATED 3.5.1999 ISSUED BY THE VILLAGE OFFICER, KILIKOLLOOR. EXT.P4 TRUE COPY OF ORDER NO. IR/7629/99 DATED ;2.11.2000 ISSUED BY THE GENERAL MANAGER, DIC, KOLLAM. EXT.P5 TRUE COPY OF THE CLAIM PETITION DATED 11.3.2005 FILED BY THE PETITIONER. EXT.P6 TRUE COPY OF LETTER NO. D5-6735/02 DATED 19.4.2005 OF THE THIRD RESPONDENT TO THE PETITIONER. RESPONDENTS' EXHIBITS: NIL. TRUE COPY P.S. TO JUDGE. C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- W.P.C. NO. 15023 OF 2005 -------------------------------------------- Dated this the 22nd day of May, 2008 JUDGMENT Writ Petition was filed by the petitioner-Bank challenging recovery proceedings for recovery of various amounts due to the Government from the fourth respondent, whose property was mortgaged to the petitioner-bank. This Court under interim orders permitted the Bank to sell the property and the property is now sold at Rs. 7,10,000/-. The Bank's claim as on 31.12.2007 was Rs. 4,13,000/-. It is not known whether balance is sufficient to take care of the entire liability due to various agencies of the State. Referring to counter affidavit, Government Pleader submitted that the liability due to Govt. is Rs. 2,73,141/- and interest thereon. Since sale proceeds received on sale of defaulter's property is almost sufficient to settle the liability due to the Bank and to the Govt., W.P. is disposed of directing the petitioner-bank to appropriate only the exact loan amount with contract rate of interest upto 31.12.2007 without charging any compounding rate of interest, or penal or default interest and pay the balance amount 2 to the third respondent along with a detailed statement of liability of fourth respondent worked out by the Bank as above for the third respondent to appropriate balance among various creditor institutions. This should be done by the Bank within one month from today. It will be open to the third respondent to call for accounts of the fourth respondent to verify whether appropriation was in accordance with directions above and if not to bring it to the notice of this Court for taking appropriate action against the Bank for violation of the directions contained in the judgment. As and when amount is received third respondent will appropriate the amounts against revenue recovery demands and will also lift the attachment. (C.N. RAMACHANDRAN NAIR) Judge kk 3