IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR MONDAY, THE 28TH JULY 2008 / 6TH SRAVANA 1930 WP(C).No. 26302 of 2005(F) -------------------------- PETITIONER: ------------ JAMES. M. MANGARA, S/O. MATHEW, MANGARA HOUSE, THADIKKADAVU P.O., KANNUR DISTRICT. BY ADV. GRI.BOBY MATHEW SMT.K.MEERA RESPONDENTS: ------------- 1. THE SPECIAL DEPUTY TAHSILDAR (REVENUE RECOVERY) THALIPARAMBA, KANNUR DISTRICT. 2. THE FEDERAL BANK LTD., KANNUR BRANCH, REPRESENTED BY ITS MANAGER. BY ADV. SRI.GEORGE VARGHESE (MANACHIRACKEL) FOR R2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 28/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 APPENDIX PETITIONER'S EXHIBITS: EXT.P1 TRUE COPY OF THE REVENUE RECOVERY NOTICE DATED 17.2.2000 BEARING NO. E2 2405 /2000 ISSUED BY FIRST RESPONDENT. EXT.P1(a) TRUE COPY OF THE REVENUE RECOVERY NOTICE DATED 17.2.2000 BEARING NO. E2 2404/2000 ISSUED BY THE FIRST RESPONDENT. EXT.P1(b) TRUE COPY OF REVENUE RECOVERY NOTICE DATED 17.2.2000 BEARING NO. E2 2408/2000 ISSUED BY FIRST RESPONDENT. EXT.P1(c) TRUE COPY OF THE REVENUE RECOVERY NOTICE DATED 26.2.2000 BEARING NO. E2 2732/2000 ISSUED BY FIRST RESPONDENT. EXT.P2 TRUE COPY OF JUDGMENT DATED 29.1.2002 PASSED BY THE SUB COURT, PAYYANNUR IN OS NO.114 OF 1999 EXT.P3 TRUE COPY OF JUDGMENT DATED 4.10.2002 PASSED BY THE HON'BLE HIGH COURT OF KERALA IN OP 11844 OF 2002. RESPONDENTS' EXHIBITS: NIL. TRUE COPY P.S. TO JUDGE. C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- W.P.C. NO. 26302 OF 2005 -------------------------------------------- Dated this the 28th day of July, 2008 JUDGMENT Petitioner's property is mortgaged to the second respondent-Bank against loan granted to six persons including the petitioner. The total loan availed by six persons in 1996 is Rs. 1,91,000/-. The Bank filed suit in 1999 for recovery of arrears of Rs. 3.21 lakhs with default interest and simultaneously initiated revenue recovery proceedings. The petitioner contested the recovery proceedings in this Court and Government and under the instalment scheme granted by this Court and Government, petitioner and others have paid substantial amount, which appears to be true because suit filed for Rs. 3.21 lakhs with default interest was settled through consent decree at Rs. 1.21 lakhs. Petitioner again approached this court and this Court granted instalment facility. Even though one instalment was paid and balance was not paid, recovery proceedings were continued. This Writ Petition is filed against the recovery proceedings currently in force. I heard counsel appearing for the petitioner and standing counsel appearing for the 2 Federal Bank. 2. Loan is admittedly taken for agricultural purposes and petitioner and others are entitled to incentives under Government scheme. If the matter is referred to Agrl. Debt Relief Commission, petitioner will get substantial relief. Counsel for the Bank fairly submitted that the Bank is willing to offer reasonable settelement, if the petitioner and others approach the Bank and offer payment. Since the Bank is extensively advancing loans for agricultural sector in the very same area, Bank will be familiar with the relief granted by the Agrl. Debt Relief Commission in similar cases. Having regard to the substantial amount already paid by the petitioner and others, I feel instead of delaying the matter by referring it to Agrl. Debt Relief Commission, the Bank should take into account the relief granted by the Commission in similar cases and extend the same to the petitioner and others so that the liabilsity is settled without prolonging the matter before the Commission. W.P. is accordingly disposed of directing the Bank to make adjustments of payments already made to the loan account and interest but without reckoning penal interest and default 3 interest and grant all possible incentives to the petitioner and others to settle the liability. However, if settlement is not arrived at between the Bank and the petitioner, it will be open to the petitioner to approach the Agrl. Debt Relief Commission for their decision. In order to faciliate the above, recovery proceedings will be kept in abeyance for three months from now and petitioner will approach the Bank for settlement at the earliest so that the matter will be finally settled within three months. If the matter is not settled within three months or petitioner does not get orders from Commission, recovery proceedings will be continued based on the decree of the civil court after three months. (C.N. RAMACHANDRAN NAIR) Judge kk 4