IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR WEDNESDAY, THE 12TH AUGUST 2009 / 21ST SRAVANA 1931 WP(C).No. 17351 of 2006(N) -------------------------- PETITIONER(S): --------------- 1. P.V.MAMOO HAJI, MUBARAK HOUSE, AZHIYOOR, KOROTH ROAD P.O. VADAKARA, KOZHIKODE DISTRICT. 2. A.P.USMAN, S/O. MAMOO HAJI, SAGARA, NEAR CIVIL COURT, THALASSERY, KANNUR DISTRICT. 3. KAMARU LAILA, W/O. USMAN, SAGARA, NEAR CIVIL COURT, THALASSERY, KANNUR DISTRICT. BY ADV. SRI.K.SHRIHARI RAO SMT.N.SHOBHA SRI.P.N.ANOOP RESPONDENT(S): --------------- 1. KERALA FINANCIAL CORPORATION REPRESENTED BY ITS MANAGING DIRECTOR, HEAD OFFICE AT VELLAYAMBALAM, TRIVANDRUM. 2. THE CHIEF MANAGER, KERALA FINANCIAL CORPORATION, PALAKKAD BRANCH, 1ST FLOOR, CENTURY COMPLEX, MATHAKOVIL STREET, SULTHANPET, PALAKKAD. 3. THE DEPUTY TAHASILDAR, (REVENUE RECOVERY), KERALA FINANCIAL CORPORATION, KOZHIKODE. ADV. SRI.T.V.GEORGE, SC, KFC FOR R1&2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 12/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX PETITIONER'S EXHIBITS: P1: TRUE COPY OF LETTER DT.5.12.2003 OF R2. P2: TRUE COPY OF REPRESENTATION DT.29.6.2004 OF PETITIONER. P3: TRUE COPY OF LETTER DT.5.8.2004 OF R2. P4: TRUE COPY OF NOTICE DT.5.8.05 OF R3. P5: TRUE COPY OF LETTER DT.31.10.05 OF R2. TRUE COPY PA TO JUDGE C.N.RAMACHANDRAN NAIR, J. .................................................................... W.P.(C) No.17351 of 2006 .................................................................... Dated this the 12th day of August, 2009. JUDGMENT First petitioner is the borrower and petitioners 2 and 3 are the guarantors for the loan availed by the first petitioner from KFC. According to the petitioners, third petitioner's one item of property not specifically mortgaged is proceeded against for recovery. Petitioners' case is that first respondent itself has valued two other items of property and the valuation is such that the same will cover the entire loan with arrears. The contention of the petitioner is that only two items of property mortgaged could be proceeded against. Standing Counsel appearing for the KFC opposed stating that any property of the defaulter as well as guarantors could be proceeded against. Even though petitioners were given interim order, petitioners have not complied with the same and consequently there was no stay. It is not known whether KFC has proceeded against the property of third respondent and recovered the arrears. In any case I feel one more opportunity can be granted to the petitioners to settle liability, failing which any item of property of the defaulter or guarantors could be attached and sold. The petitioners are given time till 30.9.2009 to clear the arrears. 2 There will be direction to the KFC not to recover any penal interest, if petitioners clear the entire arrears with contract rate of interest, whether simple or at compounded rate, if payment is made before 30.9.2009. However, if payment is not made as above, then respondents are free to proceed for recovery of arrears with default interest. C.N.RAMACHANDRAN NAIR Judge pms