IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE V.GIRI TUESDAY, THE 15TH JANUARY 2008 / 25TH POUSHA 1929 WP(C).No. 1767 of 2008(I) ------------------------- PETITIONER: ------------- O.E. NARAYANAN S/O. NEELAKANTAN, OLICKAL HOUSE, AGED 49 YEARS, PAREEKKANNY P.O., KOTHAMANGALAM, ERNAKULAM DISTRICT. BY ADV. SRI.JOHNSON P.JOHN SRI.RAJU SEBASTIAN VADAKKEKKARA RESPONDENTS: ---------------- 1. MANAGER, KERALA FINANCIAL CORPORATION, BRANCH OFFICE, M.C. ROAD, NEAR Y.W.C.A., KOTTAYAM. 2. DEPUTY TAHSILDAR, REVENUE RECOVERY, KERALA FINANCIAL CORPORATION, KOTTAYAM. 3. P.V. MADHU, FATHERS NAME NOT KNOWN, AGED 45 YEARS, R/AT PUTHUPPARAMBIL HOUSE, POOVANTHURUTH, PANACHIKKADU, KOTTAYAM DISTRICT. 4. P.K. NIRMALA, W/O. P.K.MADHU, R/AT PUTHUPPARAMBIL HOUSE, POOVATHURUTH, PANACHIKKADU, KOTTAYAM DISTRICT. R1 BY SRI. JAMES KURIAN, SC, KFC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: V.GIRI,J. ------------------------- W.P ( C) No. 1767 of 2008 -------------------------- Dated this the 15th January, 2008 J U D G M E N T Petitioner had availed a term loan of Rs. 4 lakhs and special capital assistance of Rs.1,54,000/- from the 1st respondent. Admittedly, an agreement was executed. Petitioner had also created equitable mortgage over the property belonging to him by deposit of title deeds. Petitioner submits that though an industrial unit was set up with the financial assistance of the 1st respondent, the unit fell sick. Petitioner contends that unit was then sold to respondents 3 and 4 with all the attendant liabilities. There is a contention that the business was handed over to the respondents 3 and 4 with the consent and approval of the 1st respondent Corporation. Respondents 3 and 4 have created and mortgaged their properties towards security for the repayment of the loan availed by the petitioner. Apparently, thereafter, petitioner moved the 1st respondent for releasing the title deed relating to his property. But this was refused by the 1st respondent. The writ petition challenges Exhibit P1 notice of W.P ( C) No. 1767 of 2008 2 revenue recovery proposing to proceed against the properties of the petitioner as also the properties stated to belong to respondents 3 and 4. There is also a prayer for a direction to the 1st respondent to release the title deed in relation to the property belonging to the petitioner. 2. I have heard the Learned counsel for the petitioner and the learned standing counsel for the Corporation also. 3. In my view, the writ petition is misconceived. Admittedly, the petitioner had availed a loan from the Financial Corporation. If there were a sale of the property during the currency of the mortgage, the mortgagee is entitled to ignore the same. Petitioner does not have a case that the transfer of the mortgaged property is pursuant to a tripartite agreement between the transferor-mortgagor, mortgagee- Financial Corporation and the Transferee. A mere assertion that business was handed over with the consent and approval of the Financial Corporation does not improve the case of the petitioner. Nor does it change the jural relationship between the petitioner and the Financial Corporation. Even going by the petitioner’s case, the Corporation has refused to hand over the title deeds relating W.P ( C) No. 1767 of 2008 3 to his property. Admittedly,there has been no redemption of the mortgage created by the petitioner in favour of the 1st respondent Corporation. In such circumstances, the prayer for a direction to the 1st respondent to return the title deed is clearly misconceived. Undisputedly, there are amounts due from the petitioner to the Corporation. If there has been any subsequent arrangement between the petitioner and respondents 3 and 4, it is upto them to work out the same. The same will not have any impact on the rights available to the Corporation to recover the amount due to them from the loanee. I do not find any grounds to interfere in this writ petition and the same is therefore, dismissed. (V.GIRI, JUDGE) ma W.P ( C) No. 1767 of 2008 4 K.THANKAPPAN,J CRL.A. NO.92 OF 1999 ORDER W.P ( C) No. 1767 of 2008 5 25th May, 2007