IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'OURALE THE CHIEF JUSTICE MR.H.L.DATTU & THE HONOURABLE MR. JUSTICE A.K.BASHEER TUESDAY, THE 24TH JUNE 2008 / 3RD ASHADHA 1930 W.A.No. 2718 of 2007 ---------------------------- AGAINST THE JUDGEMENT IN WPC.20206/2007 DATED 07/09/2007 .................... APPELLANT/PETITIONER IN WPC ----------------------------------------------- P.CHANDRIKA, KRISHNA OIL MILLS, MUNDELA P.O., VELLANADU, NEDUMANGADU. BY ADV. DR.K.P.KYLASANATHA PILLAY SRI.V.SADASIVAN SRI.K.JITHIN RESPONDENTS/RESPONDENTS IN WPC --------------------------------------------------------- 1. THE CHIEF MANAGER, KERALA FINANCIAL CORPORATION, VELLAYAMBALAM, THIRUVANANTHAPURAM. 2. MAYAKRISHNAN, ASSISTANT MANAGER (RECOVERY), KERALA FINANCIAL CORPORATION, VELLAYAMBALAM, THIRUVANANTHAPURAM. 3. THE GENERAL MANAGER, DISTRICT INDUSTRIES CENTRE, THIRUVANANTHAPURAM. 4. THE FINANCE SECRETARY, MINISTRY OF FINANCE, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. R1 & R2 BY ADV. SRI.R.S.KALKURA SC, KFC R3 & R4 BY GOVERNMENT PLEADER SRI.M.P.SREEKRISHNAN THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 24/06/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: H.L.DATTU, C.J. & A.K.BASHEER, J. ------------------------------------------- W.A.No.2718 of 2007 & I.A.No.556 of 2008 ------------------------------------------ Dated, this the 24th day of June, 2008 JUDGMENT H.L.Dattu, C.J. This writ appeal is directed against the orders passed by the learned Single Judge in W.P.(C) No.20206 of 2007 dated 7th September, 2007. (2) In the writ petition filed, the prayer was to call for the records leading to the issuance of Ext.P8 letter of the first respondent. The consequential prayers are to declare that the petitioner is entitled to clear the loan account by remitting only the balance of the principal loan amount, avoiding interest and penal interest as per the understanding reached in the joint meeting held on 12.1.2007 and lastly to consider her representations Exts.P7 and P10. (3) The learned Single Judge, to say the least, has rightly rejected the writ petition with certain directions. (4) During the pendency of the writ appeal once again the Kerala Financial Corporation, the contesting respondent herein, has issued a letter dated 2.6.2008 to the petitioner, inter alia, informing her the principal amount W.A.No.2718 of 2007 2 and the interest payable by her towards the loan account outstanding. They have further stated that if the respondents have to consider her request for granting the benefit of One Time Settlement (OTS) Scheme, either she has to pay 10% of the balance amount or 25% of the balance principal amount, whichever is less, due to the Corporation. Appellant has not even heeded with this offer made by the respondents. (5) Admittedly, the appellant is a defaulter. She owes huge loan amount towards the Kerala Financial Corporation. Her only plea is that there is an OTS Scheme in the Corporation and she is entitled to take the benefit of the OTS Scheme. If that is so, the petitioner/appellant has to comply with the terms and conditions of the OTS Scheme and otherwise the Corporation cannot act upon the request of the appellant for grant of the benefit under the OTS Scheme. (6) In fact during the pendency of the writ appeal the respondents have come forward to give one more opportunity to the appellant to consider her application/request for grant of benefit under the OTS Scheme provided she applies before 20.6.2008 by making payment of either 10% of the balance amount or 25% of the balance principal amount, whichever is less. This in our opinion, is a very reasonable offer. Appellant has to take this opportunity to settle the entire dues of the respondent Financial Corporation. W.A.No.2718 of 2007 3 (7) If for any reason, the appellant does not comply with the terms and conditions indicated by the respondent Corporation in their letter dated 2.6.2008, we make it clear that the Corporation is at liberty to proceed to recover the amounts due from the appellant by resorting to appropriate recovery proceedings. Ordered accordingly. (H.L.DATTU) CHIEF JUSTICE (A.K.BASHEER) JUDGE vns