IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC THURSDAY, THE 12TH FEBRUARY 2009 / 23RD MAGHA 1930 WP(C).No. 4729 of 2009(L) ------------------------- PETITIONER(S): --------------- GEORGE JOSEPH, PROPRIETOR, J AND J FLOODS, AMBALAKKULAM, ATHIRAMPUZHA, KOTTAYAM. BY ADV. SRI.JOBY CYRIAC RESPONDENT(S): --------------- 1. KERALA FINANCIAL CORPORATION,REP. BY ITS MANAGING DIRECTOR, VELLAYAMBALAM, THIRUVANANTHAPURAM. 2. CHIEF MANAGER, KERALA FINANCIAL CORPORATION, BRANCH OFFICE, KOTTAYAM. BY SC SR. JAMES KURIAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12/02/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC,J. ----------------------- W.P.(C).No.4729 OF 2009 ------------------------ Dated this the 12th day of February, 2009. JUDGMENT Petitioner submits that for starting an Industrial Unit for the manufacture of pickle, jam, mineral water etc., he had availed of a loan of Rs.20.21 lakhs. According to him, towards security he had mortgaged an extent of 55 cents of land in Sy. No.451/3 of Athirampuzha village. 2. Although for reasons which were beyond the petitioner's control, fact remains that default was committed in the matter of repayment and even the establishment of the factory could not be completed. In view of the default committed by the petitioner, the respondents initiated proceedings and by Ext.P7 tenders were invited inviting tender for the disposal of the property mortgaged by the petitioner, which is already taken over. Ext.P7 shows that the tenders are to be opened WP(c).No.4729/09 2 on 17.2.2009. 3. It is at this stage the writ petition is filed by the petitioner mainly praying that, if he is given sufficient time to arrange for a private sale of the property, he will sell a portion of the property, raise funds and liquidate the liability due to the respondents. 4. I heard the counsel for the respondent also who has objected to the prayer. Petitioner is admittedly a defaulter. If that be so, steps taken by the KFC cannot be faulted. However, the fact remains that what is notified for sale is the mortgaged property as a whole and what the petitioner contends is that by selling a part thereof the liability can be liquidated. It is for selling a portion of the property and raise funds to discharge the liability that is due to the KFC that the petitioner is seeking a reasonable time. Having regard to the above facts I feel that it is only appropriate that the petitioner is given a reasonable time to raise the funds and liquidate the liability that is due so that if possible, a distress sale of the mortgaged WP(c).No.4729/09 3 assets can be avoided. Accordingly, the writ Petition is disposed of directing that the KFC shall defer further proceedings pursuant to Ext.P7, in so far as the petitioner's property is concerned, for a period of 3 months and in the meanwhile it will be open to the petitioner to find out a buyer for the property either in full or in part or otherwise find out means to liquidate the liability, in which case he can approach the KFC and get the liability discharged and get the property also released. (ANTONY DOMINIC) JUDGE vi/