IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.J.B.KOSHY & THE HONOURABLE MR. JUSTICE P.BHAVADASAN WEDNESDAY, THE 11TH FEBRUARY 2009 / 22ND MAGHA 1930 WA.No. 598 of 2008 ------ -------------------- AGAINST THE JUDGEMENT IN OP.37353/2002 DATED 13.11.2007 .................... APPELLANTS/PETITIONERS 1 & 2 ------------------------------------------------ 1. M/S.EMINENT SEA FOODS PVT.LTD. PLOT NO.9, COCHIN FISHERIES HARBOUR THOPPUMPADY, KOCHI-682 005,BY ITS MANAING DIRECTOR MAJ. C.J.THOMAS (RTD) 2. MAJOR (RTD) C.J.THOMAS S/O.VARGHESE YOHANNAN, AGED 70, RESIDING AT ANSU VILLA, KADAVANTHRA, KOCHI-20. BY ADV. SRI.V.VENUGOPALAN NAIR RESPONDENTS/RESPONDENTS & 3RD PETITIONER -------------------------------------------------------------------------- 1. THE KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD., 2ND FLOOR, CHOICE TOWERS MANORAMA JUNCTION, KOCHI-682 016, REPRESENTED BY ITS SECRETARY. 2. THE DEPUTY TAHSILDAR (R.R.) KANAYANNUR TALUK, ERNAKULAM. 3. COL. (RTED) K.C.GEORGE RESIDING AT 2836, K.S.N. MENON ROAD, ERNAKULAM KOCHI-16. R1 BY ADV. SRI.M.PATHOS MATHAI (SR.) & ADV.SMT.MARIYAM MATHAI R2 BY SR.GOVERNMENT PLEADER SRI.M.P.SREEKRISHNAN THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 11/02/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J.B.Koshy, Ag.C.J. & P.Bhavadasan, J. ------------------------------------------ W.A.No. 598 of 2008 ------------------------------------------ Dated, this the 11th day of February, 2009 JUDGMENT J.B.Koshy, Ag.C.J. Second appellant is the Managing Director of the first appellant Company. The first respondent along with Kerala Financial Corporation sanctioned a term loan of Rs.86 lakhs to the first appellant. After disbursement of an initial amount of Rs.15 lakhs, the first respondent refused to disburse the balance amount. It is the case of the Company that since the balance amount was not paid the Company could not implement the project in time. Now, the initial amount of Rs.15 lakhs given is sought to be recovered through proceedings under Section 29 of the State Financial Corporations Act. It is the case of the appellants that if the full amount of the loan sanctioned was given, they would have started the project immediately and would have paid the entire loan with interest in time and it is only because of the delay in disbursing the amount the interest is accrued. W.A.No.598 of 2008 2 2. For the very same reason the appellants earlier approached this Court and this Court dismissed W.A.No.141 of 1996 by Ext.P9 judgment. It was held by this Court that this Court cannot consider the inter se rights and liabilities of the parties with regard to the loan transaction. However, the appellants were given liberty to challenge the recovery proceedings, if any taken, according to law. In this writ petition also the same contentions are taken. The appellants have availed the loan and executed document to repay the amount. The amount was not repaid. Appellants cannot say that unless the full amount of loan originally sanctioned is disbursed he will not repay the loan. Therefore, the learned Single Judge dismissed the writ petition. 3. We see no ground to interfere with the same. However, if the appellants are willing for a one time settlement or re- payment of the loan amount in instalments, it is for the appellants to approach the respondent itself for appropriate relief. Whether waiver of interest should be given can be considered by the Corporation. W.A.No.598 of 2008 3 Without prejudice to the above right, this writ appeal is dismissed. J.B.Koshy, (Ag. Chief Justice) P.Bhavadasan, (Judge) vns