IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR THURSDAY, THE 22ND MARCH 2007 / 1ST CHAITHRA 1929 WA.No. 717 of 2007() -------------------- AGAINST THE JUDGEMENT IN WPC.4378/2007 Dated 08/03/2007 .................... APPELLANT: PETITIONER --------------------- P.S.GRANITE INDUSTRIES, PAYASSAI, IRIKKUR, REPRESENTED BY THE MANAGING PARTNER K.ABOOBACKER SIDDIQUE, S/O.KAMALKUTTY, PAYASSAI, IRIKKUR. BY ADV. SRI.P.V.BABY SRI.A.N.SANTHOSH RESPONDENTS: RESPONDENTS ------------------------ 1. KERALA FINANCE CORPORATION, REPRESENTED BY ITS MANAGING DIRECTOR, VELLAYAMBALAM, THIRUVANANTHAPURAM. 2. MANAGER, BRANCH OFFICE OF THE KERALA FINANCE CORPORATION, CHANDROTH COMPLEX, NETHAJI ROAD, KANNUR. 3. STATE OF KERALA, REPRESENTED BY THE SECRETARY TO FINANCE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. R1 & R2 BY S.C. SRI.V.B.UNNIRAJ BY GOVERNMENT PLEADER SMT.MEERA FOR R3 THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 22/03/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J.B.KOSHY & T.R.RAMACHANDRAN NAIR, JJ. ------------------------------------- W.A.No.717 OF 2007 ------------------------------------- Dated 22nd March, 2007 JUDGMENT Koshy,J . Appellant/petitioner is a partnership firm. It availed a loan from the Kerala Finance Corporation for establishing a granite polishing unit. Admittedly, they are defaulters in paying the loan amount and Kerala Finance Corporation has attached the properties. Counsel for the Kerala Finance Corporation submitted before the learned Single Judge that if the petitioner pays one-tenth of the amount outstanding and makes an application with a reasonable offer, the KFC will consider allowing the petitioner to close the loan account under the O.T.S. Scheme. The learned Judge directed that if the petitioner pays Rs.2.8 lakhs on or before 31.3.2007, the competent authority of the KFC will consider the claim of the petitioner for O.T.S. facility. While paying the amount, the petitioner shall make its offer for closing the loan account under the scheme and if the proposal of the petitioner is not acceptable to the K.F.C., it shall inform the petitioner the minimum amount for which the loan account could be closed. Both parties are agreed for the above suggestions. But, learned Judge also stated that only if the W.A.717/2007 2 petitioner pays one third of the outstanding loan amount, the unit shall be handed over to it, subject to the usual conditions. It is the case of the appellant that he can collect with difficulty Rs.2.8 lakhs as ordered, but, he will not be able to raise any further amount if the unit is not functioning. It is submitted by the counsel for K.F.C. that actually the establishment is not handed over, but, it is only attached. In the above circumstances, on payment of Rs.2.8 lakhs, as directed by the learned Single Judge, the petitioner should be allowed to run the establishment provided he pays Rs.2.8 lakhs each before 30th of every month till one time settlement is reached. If there is any default in payment of the instalments as directed, the respondents will be free to take appropriate action. This order is made with a specific condition that petitioner shall not remove any of the machineries therein and no damage is caused to the machineries. The writ appeal is disposed of accordingly. J.B.KOSHY JUDGE T.R.RAMACHANDRAN NAIR JUDGE tks