IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR TUESDAY, THE 23RD FEBRUARY 2010 / 4TH PHALGUNA 1931 WP(C).No. 16162 of 2009(M) -------------------------- PETITIONER : ------------------ SMT.RENUKA RAMACHANDRAN, AGED 48, W/O.RAMACHANDRAN, M/S.OJESS FOODS, "JANAKA", THEKKEKUNNEL, ITHITHANAM P.O., CHANGANACHERRY. BY ADV. MR.P.A.MOHAMMED SHAH RESPONDENTS : ---------------------- 1. CHIEF MANAGER, KERALA FINANCIAL CORPORATION, KOTTAYAM BRANCH, M.C.ROAD, KOTTAYAM. 2. MANAGER, HDFC BANK, (ERSTWHILE LORD KRISHNA BANK & CENTURION BANK OF PUNJAB, KOTTAYAM BRANCH. R1 BY MR.K.JAJU BABU, STANDING COUNSEL FOR KERALA FINANCIAL CORPORATION R2 BY MR.GEORGE VARGHESE (MANACHIRACKEL) R2 BY MR.P.R.MILTON R1 BY MR.A.A.ABUL HASSAN, STANDING COUNSEL FOR KFC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/02/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JVT T. R. RAMACHANDRAN NAIR, J ------------------------------------ W.P.(C.) No. 16162 of 2009-M --------------------------------- Dated this the 23rd day of February 2010 J U D G M E N T The petitioner is the proprietor of the Ojess Foods, Ithithanam which is a manufacturing unit of curry powder and bread. For establishing the said unit she had availed Rs.2,94,000/- by mortgaging 9 cents of land in Survey No.3/1 of Kurichi Village, Changanacherry Taluk. Another two stretches of land of an extent of 20 and 8.25 cents of land and building have also been mortgaged as additional collateral security by the petitioner. 2. The petitioner has also availed further loan from the 2nd respondent bank to the tune of Rs.4 lakhs and has mortgaged three stretches of land having extent of 30 cents, 47 cents and 30 cents each to the said bank also. 3. The main prayer in the writ petition is for a direction to the 1st respondent to release the original title deeds of W.P.(C)No.16162 of 2009 -2- (a) 9 cents of land in survey number 3/1 of Kurichi Village which is owned by the petitioner (b) 20 cents of land in Survey No:4/1L of Kurichi Village, Changanacherry Taluk owned by petitioner's Husband Mr. Ramachandran (c) 8.25 cents of land and building in Survey No:11/1 of Muttambalam Village, Kottayam Municipality, which are mortgaged before the 1st respondent. With regard to the items mortgaged with the 2nd respondent also a similar prayer has also been made by the petitioner. 4. The 1st respondent has filed a statement in the matter. It is averred in Para 3 that the petitioner has created second charge in favour of the 2nd respondent, formerly Lord Krishna Bank, on the assets mortgaged to the 1st respondent for a credit facility of Rs.4 lakhs in February 1994. Therefore the KFC is legally the custodian of the documents on behalf of the Bank also. When the petitioner committed default, the 1st respondent took recovery steps under Section 29 of the SFC Act and Revenue Recovery Act. W.P.(C)No.16162 of 2009 -3- On the request of the petitioner, the 1st respondent granted One Time Settlement facility for Rs.4.50 lakhs also. It is further averred that an amount of Rs.65,000/- is due, which according to the learned Standing Counsel for the 1st respondent will be above Rs.80,000/- as on today. 5. It is submitted by the learned Counsel for the petitioner that the petitioner's husband is physically ill and is laid up and thus they are unable to make any immediate cash payment as medical expenses have to be met. In the light of the stand taken by the 1st respondent no direction can be issued at this stage to release any of the documents to the petitioner. The learned Counsel for the petitioner submitted that only if a facility is provided for selling any of the items of the properties, the liabilities can be wiped of. It is up to the petitioner to provide a prospective purchaser to any of the items of properties mortgaged to clear off the amounts and if such a proposal is made by the petitioner to any of the respondents, the same will be considered and W.P.(C)No.16162 of 2009 -4- appropriate action will be taken, so as to finally settle all claims. The writ petition is disposed of as above. No costs. Sd/- T.R.RAMACHANDRAN NAIR, JUDGE //True Copy// P.A. To Judge JVT