IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE V.GIRI FRIDAY, THE 7TH AUGUST 2009 / 16TH SRAVANA 1931 WP(C).No. 19856 of 2009(B) -------------------------- PETITIONER(S): --------------- B.A.RASHEED, AGED 45 YEARS, S/O.LATE BAVA, ZEENATH MANZIL, SANATHANAM WARD, MULLAKKAL, ALAPPUZHA-1. BY ADV. SRI.A.T.ANILKUMAR SMT.V.SHYLAJA RESPONDENT(S): --------------- 1. KERALA FINANCIAL CORPORATION, REPRESENTED BY MANAGING DIRECTOR, VELLAYAMBALAM, TRIVANDRUM. 2. THE CHIEF MANAGER, KERALA FINANCIAL CORPORATION, BRANCH OFFICE, FINANCE TOWERS, KALOOR, KOCHI-17. BY ADV.SRI.S.SREEKUMAR, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 07/08/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: V.GIRI, J. ------------------------------------- W.P.(C)NO.19856 of 2009 -------------------------------------- Dated this the 7th day of August, 2009. JUDGMENT The petitioner availed a loan of Rs.10 lakhs from the Kerala Financial Corporatin in the year 1996. He defaulted repayment of the same. Ultimately, on the Corporation initiating steps against him for recovery of the amount, he sought for one time settlement and as evidenced by Ext.P1, he was directed to pay Rs.28,90,000/- plus delayed interest for the said amount. He paid the amount. He then sought for release of the title deed deposited by him at the time of availing the loan. 2. The Corporation has taken the stand that the petitioner is bound to reimburse the legal/court expenses incurred by the Corporation while defending O.S.Nos.553/2000 and 488/2001 on the files of the Sub W.P.(C)NO.19856 of 2009 :: 2 :: Court, Ernakulam. It is this stand which has been challenged in this writ petition. 3. The suits mentioned above were ultimately dismissed as withdrawn, after the petitioner had availed of the one time settlement facility from the Corporation. I am not in a position to agree with the learned counsel for the petitioner that the Corporation is not entitled to reimburse itself of the legal expenses incurred in defending the aforementioned two suits. 4. Learned counsel for the Corporation points out that such a feature has been mentioned even in the guidelines for settlement of loan accounts under one time settlement scheme. 5. But, I am of the view that the Corporation shall reimburse itself only the scheduled fees that they would have been required to pay to their counsel for defending O.S.Nos.553/2000 and 488/2001 before the Sub Court, Ernakulam. 6. Accordingly, the Corporation shall, within two weeks from the date of receipt of a copy of this W.P.(C)NO.19856 of 2009 :: 3 :: judgment, forward a statement of the legal expenses incurred by the Corporation for defending defending O.S.Nos.553/2000 and 488/2001 before the Sub Court, Ernakulam. I make it clear that the Corporation shall not seek to reimburse itself of any other legal expenses incurred under the account of the petitioner. Once a statement is received, it is open to the petitioner to pay the amount so demanded by the Corporation and on such payment, the title deed deposited by the petitioner by way of equitable mortage shall be released to him. Writ petition is disposed of as above. Sd/- (V.GIRI) JUDGE sk/- //true copy// P.S. To Judge.