IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC THURSDAY, THE 22ND SEPTEMBER 2011 / 31ST BHADRA 1933 WP(C).No. 384 of 2011(W) -------------------------------- PETITIONER(S): ------------------- G.PRABHAKARAN,S/O.GOVINDAN,AGED 65 YEARS RESIDING AT MEENAKSHY PUTHEN VEEDU,MANIKKAL MURI, PULLAMPARA,NEDUMANGAD,THIRUVANANTHAPURAM. BY ADVS. SRI.P.B.SURESH KUMAR SRI.LEO GEORGE SRI.K.P.SUJESH KUMAR SRI.K.N.SASIDHARAN NAIR SRI.M.SUNIL RESPONDENT(S): -------------------- 1. KERALA FINANCIAL CORPORATION,REPRESENTED BY ITS MANAGING DIRECTOR,KERALA FINANCIAL CORPORATION,VELLAYAMBALAM,THIRUVANANTHAPURAM, PIN-695 522. 2. THE MANAGING DIRECTOR,KERALA FINANCIAL CORPORATION,VELLAYAMBALAM,THIRUVANANTHAPURAM, PIN-695 522. 3. CHIEF MANAGER,KERALA FINANCIAL CORPORATION,VELLAYAMBALAM BRANCH, THIRUVANANTHAPURAM,PIN-695 522. 4. M/S.MOTEL PLUS,REPRESENTED BY ITS PARTNER,J.USHA,MANKUZHI ILLAM,MEENAKSHI GARDEN, KAIMANAM.P.O,THIRUVANANTHAPURAM,PIN-695 040. R1 TO 3 BY ADV. SRI.A.A.ABUL HASSAN, SC, KFC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22/09/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs W.P.(C). NO. 384/2011 APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF CERTIFICATE ISSUED BY THE CORPORATION DATED 06/07/2009. P2: COPY OF THE NOTICE ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER AND OTHERS DATED 23/07/2007. P3: COPY OF THE REPRESENTATION SUBMITTED BDY THE PETITIONER TO THE SECOND RESPONDENT DATED 06/10/2008. P4: COPY OF THE JUDGMENT OF THIS HONOURABLE COURT IN WPC. NO.2475/2008 DATED 22/01/2008. P5: COPY OF THE JUDGMENT IN WPC.NO.27133/2009 DATED 25/05/2010 P6: COPY OF THE COMMUNICATION ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER DATED 29/09/2010. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A. TO JUDGE. svs ANTONY DOMINIC, J. ``````````````````````````````````````````````````````````` W.P.(C) No. 384 of 2011 W ``````````````````````````````````````````````````````````` Dated this the 22nd day of September, 2011 J U D G M E N T ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ For a loan availed of by the fourth respondent from the first respondent, petitioner was a guarantor, who had mortgaged his property as security. The fourth respondent committed default and was proceeded against. Now, the property mortgaged by the petitioner is being proceeded against. At that stage, he made Ext.P3 representation, requesting for releasing of the property, on payment of its value. That was rejected by Ext.P6 of the KFC. It was thereupon this writ petition was filed, challenging the aforesaid proceedings and seeking a direction to release the property on payment of its value. 2. When the writ petition came up for orders before this Court on 12.07.2011, considering the submissions made, this Court left it open to the petitioner to make an offer to the Corporation and it is now submitted by the Standing Counsel for the Corporation that, the offer made by the petitioner was to pay W.P.(C) No.384/2011 : 2 : `28,000/- per cent, whereas the fair value fixed in respect of the property itself come to `48,500/- per cent. It is submitted that this offer made by the petitioner was too low. It is also stated that thereafter petitioner made a request for a negotiated settlement and that the same is being processed. 3. Admittedly, the property in question is a mortgaged property and so long as the liability stands undischarged, the Corporation is entitled to proceed against the same. In such a situation, no defaulter or guarantor can claim release of the property offering to pay its value and thus frustrate recovery proceedings. Therefore, the relief sought for in the writ petition cannot be granted. However, now that the petitioner has requested for a negotiated settlement of the liability, this writ petition is disposed of, leaving it open to the petitioner to pursue the same. Sd/- (ANTONY DOMINIC, JUDGE) aks/22/09 // True Copy // P.A. To Judge