IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE V.GIRI WEDNESDAY, THE 19TH AUGUST 2009 / 28TH SRAVANA 1931 WP(C).No. 21968 of 2009(M) -------------------------- PETITIONER(S): --------------- KMJ RICE MILL (P) LTD., KADAVOOR P.O.,POTHANICAD,MUVATTUPUZHA, REP.BY ITS MANAGING DIRECTOR,JOSHY MATHEW, S/O.MATHEW,AGED 40 YEARS. BY ADV. SRI.PEEYUS A.KOTTAM RESPONDENT(S): --------------- 1. KERALA FINANCIAL CORPORATION, VELLAYAMBALAM,TRIVANDRUM, REP.BY ITS MANAGING DIRECTOR. 2. KERALA FINANCIAL CORPORATION, BRANCH OFFICE,SNDP BUILDING,PP ROAD, PERUMBAVUR,ERNAKULAM DISTRICT, KERALA-683542,REP.BY ITS MANAGER. BY SC SRI. JAJU BABU KERALA FINANCIAL COR FOR R1& 2 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: V.GIRI, J ------------------- W.P.(C).21968/2009 -------------------- Dated this the 19th day of August, 2009 JUDGMENT Petitioner availed a loan of Rs.34,00,000/- from the Kerala Financial Corporation. Immovable property was offered as security. Repayment was defaulted. Recovery proceedings were initiated by the 1st respondent. Petitioner sought for closure of the loan account under the One Time Settlement Scheme. This Court by Ext.P1 judgment, directed the Corporation to consider the plea for settlement under the OTS Scheme. By Ext.P2, petitioner was informed that the petitioner's account can be settled under the OTS Scheme, if he remits an amount of Rs.39,89,500/- on or before 25.10.2008. It seems that one of the properties mortgaged had been auctioned and it was bid for by one C.M.Muhammed. 15% of the bid amount was deposited in the account and the balance amount had to be deposited within 30 days from 27.11.2007. That was not done and therefore, the Corporation issued a notice forfeiting 15% of the bid amount which was deposited by the auction purchaser. This was challenged by the auction purchaser in W.P.(C).21968/09 2 W.P.(C).31200/2008. Petitioner was the 5th respondent therein. This Court by Ext.P3 judgment dated 23.5.2009, set aside the proceedings of the recovery officials forfeiting the amount which was deposited on the date of auction and directed refund of an amount of Rs.4,00,000/-. 2. In the meanwhile, the time provided under Ext.P2, for closure of the loan account under the OTS Scheme had expired. Petitioner renewed his request for the same. Taking note of the default on the part of the petitioner in paying the amount pursuant to the demand under Ext.P2, Ext.R1(c) proceedings were issued by the Corporation intimating the petitioner that the OTS facilities have been cancelled and seeking recovery of an amount of Rs.1,04,64,661/-, taking note of the remittance of Rs.9.50 Lakhs already made on 4.11.2008. Writ petition has been filed seeking the following relief. Issue a writ of mandamus or any other appropriate writ or order or direction and thereby command the respondents to accept W.P.(C).21968/09 3 the balance amount outstanding as per Ext.P2 One Time Settlement Scheme and direct them to release the original title deed and other securities with regard to the loan transaction to the petitioner without insisting on any additional interest. 3. Statement has been filed on behalf of the respondents. I heard learned counsel for the petitioner and learned counsel for the Corporation. 4. Mr.Jaju Babu learned counsel for the Corporation submits that the Corporation had already agreed to waive an amount of Rs.56.36 Lakhs when it had agreed for OTS as per Ext.P3. Petitioner did not pay the amount as per the OTS scheme. Nevertheless the Corporation is still willing to extend the benefit of Ext.P2 to the petitioner provided he pays an amount mentioned in Ext.P2 along with simple interest at 12%. 5. The stand taken by the Corporation should be eminently acceptable to the petitioner. After all, a W.P.(C).21968/09 4 substantial portion of the amount calculated as per the contract have been waived by the Corporation. In these circumstances, if the petitioner tenders the amount of Rs.39,89,500/- less an amount of Rs.9.50 Lakhs remitted on 4.11.2008, with the interest at the rate of 12%, payable on the balance amount from 4.11.2008, within three weeks from today, then the same shall be accepted by the Corporation and treated as one in discharge of the liability under the loan account. Writ petition is disposed of as above. V.GIRI, Judge mrcs