IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE V.GIRI MONDAY, THE 28TH JANUARY 2008 / 8TH MAGHA 1929 WP(C).No. 31321 of 2007(D) -------------------------- PETITIONER: ------------ P.T.MOHANBABU, AGED 55, S/O. P.O.THOMAS, VAIDYAN,JAYABHARATHAN GARGENS NEAR RAILWAY STATION, PUNALUR VILLAGE. BY ADV. SRI.R.ARUN (PALLURUTHY) RESPONDENTS: ------------- 1. STATE OF KERALA RREPRESENTED BY ITS SECRETARY THIRUVANANTHAPURAM. 2. THE DISTRICT COLLECTOR KOLLAM. 3. THE DEPUTY TAHSILDAR (REVENUE RECOVERY) KERALA FINANCIAL CORPORATION,KOLLAM. 4. THE VILLAGE OFFICER, PUNALUR VILLAGE, PUNALUR. 5. THE BRANCH MANAGER KERALA FINANCIAL CORPORATION KOLLAM. BY ADV. SRI.A.A.ABUL HASSAN, SC, KFC GOVERNMENT PLEADER SRI. MATHEW GEORGE VADAKKEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: V.GIRI, J ------------------- W.P.(C).31321/2007 -------------------- Dated this the 28th day of January, 2008 JUDGMENT The petitioner, who stood as a guarantor for a loan availed by a firm and its partners, Sri. Johnkutty and Smt.Leelamma, from the Kerala Financial Corporation, challenges Ext.P5 notice issued under the Revenue Recovery Act attaching a property belonging to the petitioner, which was also mortgaged as collateral security. Petitioner contends that a property, belonging to the principal debtor, which is a hotel, has already been taken over by the KFC under Section 29 of the SFC Act. 2. Learned Standing Counsel for the Corporation submits that though six attempts were made to bring the said property to sale, same did not fructify essentially because the property adjacent to the mortgaged property which originally belonged to the principal debtor had been alienated, thereby leading to a situation where the hotel is bereft of parking space and the consequential value of the mortgaged property has come down It is submitted by W.P.(C).31321/2007 2 the petitioner that the principal debtor is moving for a One Time Settlement of the dues to the KFC. 3. After having heard both sides, writ petition is disposed of in the following terms: (i). It is open to the petitioner along with the principal debtor, together or separately, to approach the KFC under the One Time Settlement scheme floated by the KFC. (ii). If they file an application as per the guidelines, and deposit 10% of the outstanding dues along with the application within one month from today, the said application shall be considered in accordance with the guidelines and appropriate decision taken thereon, without further delay. (iii). If such application is filed within one month from today, further proceedings pursuant to Ext.P5 shall be kept in abeyance pending decision on such application. W.P.(C).31321/2007 3 (iv). If such application is not filed in the aforementioned manner, then the respondents would be free to further proceed with Ext.P5. V.GIRI, Judge mrcs