IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR WEDNESDAY, THE 17TH JUNE 2009 / 27TH JYAISHTA 1931 WP(C).No. 13580 of 2006(N) -------------------------- PETITIONER(S): --------------- S.VIJAYAN PILLAI, AGED 63 YEARS, S/O.SHIVARAMA PILLAI, RESIDING AT SREELAKOM, PRIYADARSHINI COLONY ROAD, ALANGADU P.O., KOTTAPPURAM, ALUVA, ERNAKULAM. BY ADV. SRI.R.PUSHPANGATHAN PILLAI RESPONDENT(S): --------------- 1. STATE OF KERALA, REPRESENTED BY THE SECRETARY, DEPARTMENT OF INDUSTRIES, SECRETARIAT, TRIVANDRUM. 2. THE GENERAL MANAGER, DISTRICT INDUSTRIES CENTRE, ERNAKULAM. 3. THE SENIOR MANAGER, STATE BANK OF INDIA, SSI BRANCH, M.G.ROAD, ERNAKULAM. ADV. SRI.K.K.CHANDRAN PILLAI FOR R3 SRI.R.V.SATHYAPRIYAN NAIR FOR R3 R1 AND R2 BY GOVERNMENT PLEADER SRI. P.K. RAVIKRISHNAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 17/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 APPENDIX PETITIONER'S EXHIBITS: EXT.P1 TRUE PHOTOSTAT COPY OF NOTICE DATED 7.4.2006 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. EXT.P2 TRUE PHOTOSTAT COPY OF PETITIONER'S EXPLANATION WITH FACTUAL DETAILS DATED 22.4.2006 RESPONDENTS' EXHIBITS: NIL. TRUE COPY P.S. TO JUDGE. C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- W.P.C. NO. 13580 OF 2006 -------------------------------------------- Dated this the 17th day of June, 2009 JUDGMENT Petitioner is challenging recovery proceedings for recovery of arrears of margin money loan taken from the Government. According to the petitioner, title deeds deposited with the Bank was released on clearing the arrears. Government Pleader submitted that Bank committed a mistake in releasing the title deed to the borrower without giving opportunity to the Government to recover the margin money loan based on same security. Admittedly margin money loan paid by the Govt. is credited to the account of the petitioner and so much so the loan with the Bank is reduced by this amount. Therefore petitioner was liable to pay margin money loan to the Govt. All what happens is that when the Bank released the title deed to the petitioner, the Govt. lost security. However, Government's entitlement to recover the loan from the petitioner remains in tact. Counsel for the petitioner rightly pointed out that there is inordinate delay on the part of the Government in demanding and proceeding for recovery of margin money loan. I find 2 force in this contention. Therefore I modify the demand by cancelling demand of penal interest and future interest. Consequently petitioner is given freedom to settle the liability without any further payment of collection charges, penal interest and default interest. Time is granted till 15th September, 2009 to settle the liability at normal rate of interest. However, if payment is not made as above, then waiver of penal interest and future interest granted from the date of issue of Ext.P1 will stand vacated and respondents will be free to proceed for recovery of the arrears with full interest. W.P. is disposed of as above. (C.N. RAMACHANDRAN NAIR) Judge kk 3