IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC TUESDAY, THE 8TH JULY 2008 / 17TH ASHADHA 1930 WP(C).No. 11472 of 2008(N) -------------------------- PETITIONERS: ------------ 1. UNNIKRISHNAN K., PUTHENVEETTIL, PAYYAVOOR P.O., KANNUR DISTRICT. 2. MADUSOODANAN KOTTILA, KOTTILA HOUSE, PAYYAVOOR P.O., KANNUR DISTRICT. BY ADV. SRI.M.SASINDRAN SRI.TOJAN J. VATHIKULAM RESPONDENTS: ------------- 1. THE SECRETARY - PAYYAVOOR GRAMA PANCHAYATH, PAYYAVOOR, KANNUR. 2. THE PAYYAVOOR GRAMA PANCHAYATH, REPRESENTED BY ITS SECRETARY, PAYYAVOOR, KANNUR. BY ADV. SRI.GEORGE MECHERIL FOR R1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. = = = = = = = = = = = = = = = = = W.P.(C) No. 11472 OF 2008 N = = = = = = = = = = = = = = = = = Dated this the 8th July 2008 J U D G M E N T Petitioners are the tenants of 2 rooms owned by the respondent Panchayat. It is stated that at the time when they took these rooms on lease, although the bye-laws of the Panchayat enabled them to collect rent only for 3 months as security deposit, the Panchayat collected 20 months' rent. This was challenged by the petitioners before this Court by filing W.P.(C) No. 34245 of 2006. That writ petition was disposed of by Ext. P3 judgment with the following directions: “Under these circumstances, I allow the writ petition and direct the Panchayath to refund to the petitioner the security deposit made by him at the time of commencement of the lease. Refund as directed above will be made within one months of receiving copy of this judgment. If payment is not made within the time limit, the amount will carry interest at the rate of 9% per annum.” It is stated that although in pursuance to the judgment the W.P.(C) No. 11472 OF 2008 -2- Panchayat ought to have refunded the excess amount collected from the petitioners, such refund was not made. 2. Thereupon Ext. P4 lawyer notice was issued on behalf of the petitioners. On receipt of Ext. P4, the petitioners were issued Ext. P5 reply informing that the excess amount available with the Panchayat has been adjusted towards the amounts which were due from them. On that basis, the Panchayat contended that the direction in Ext. P3 judgment has been complied with. 3. Thereafter, by issuing Exts. P6 and P7 the Panchayat initiated recovery proceedings for recovering the amount that was still allegedly due from the petitioners. At that stage, this writ petition was filed praying for quashing the aforesaid notices and also to direct the Panchayat to pay interest on the amount that was wrongly withheld by it. 4. It cannot be disputed that the petitioners have the entitlement to be paid interest at 9% on the amount illegally collected from them as security deposit and withheld by the Panchayat, as directed in Ext. P3 judgment. It is also to be conceded that the Panchayat is entitled to adjust the amount due to be refunded to the petitioners and available with it, towards the amounts that are due from the petitioners. While realising its dues W.P.(C) No. 11472 OF 2008 -3- by making such adjustment, the Panchayat is also entitled to realise interest from the petitioners at the rate as mutually agreed between the parties in the agreement. 5. However, in this case, the contention of the petitioners is that while the Panchayat is seeking to realise amount from them along with interest, they were denied interest on the excess amount that was directed to be refunded by Ext. P3 in the manner as directed therein. If as stated by the petitioners, payment has not been made as directed in Ext. P3, petitioners are to be paid interest. If interest has been denied, this is clearly illegal particularly in view of the positive direction in this behalf contained in Ext. P3. Accordingly, the writ petition is disposed of with the following directions: I) The Panchayat shall quantify the excess amount along with the interest, if any, that was payable to the petitioners in terms of Ext. P3 judgment till the date on which adjustment was made. 2) Once such quantification is made, the Panchayat can adjust the amount available with it, towards the amounts that were due from the petitioners. 3) Once this process is completed, if any excess amount is still due to the petitioners such amount shall be refunded to the W.P.(C) No. 11472 OF 2008 -4- petitioners within six weeks of production of a copy of this judgment. 4) On the other hand, inspite of the adjustment as above, if any amount is due from the petitioners to the Panchayat, that shall be paid within 2 weeks from the date of receipt of an intimation in this behalf from the Panchayat. 5) It is further directed that once quantification is made as above, the Panchayat shall immediately issue a statement indicating the details of quantification and the liability of the petitioners in order to enable them to make payment as above. 6) It is directed that in the meanwhile the interim order dated 3.4.2008 staying further proceedings pursuant to Exts. P6 and P7 will remain in force for a period of 2 months from today. Petitioner shall produce a copy of this judgment before the respondent Panchayat for compliance. ANTONY DOMINIC JUDGE jan/-