IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMAN MONDAY, THE 1ST SEPTEMBER 2008 / 10TH BHADRA 1930 OP.No. 19670 of 2002(N) ----------------------- PETITIONER: ------------------- R.P.SUBAIDA, MANAGING PARTNER, M/S. WEST INDIA BEVERAGES & FOOD PRODUCTS, THOTTADA, KANNUR-7, RESIDING AT `NIRMALYAM', MEDICAL COLLEGE CAMPUS, 30/122, KUROOR POST, KOZHIKODE-673 008. BY ADV. SRI.K.SURENDRA MOHAN RESPONDENTS: ---------------------- 1. THE GENERAL MANAGER, DISTRICT INDUSTRIES CENTRE, KANNUR. 2. THE STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY TO GOVERNMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. BY GOVERNMENT PLEADER SRI SHYSON P. MANGUZHA FOR R1&2 THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 01/09/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON CMP.NO.38483/2002 IN OP.NO.19670/2002 ---------- DISMISSED 1/9/2008 Sd/- P.R.RAMAN, JUDGE. APPENDIX PETITIONER'S EXTS: EXT.P1 TRUE PHOTOCOPY OF CERTIFICATE OF REGISTRATION AS SICK UNIT DATED 31/3/89. EXT.P2 TRUE PHOTOSTAT COPY OF PETITIONER'S LETTER DTD. 26/5/1990 TO THE MANAGER, BANK OF BARODA. EXT.P3 TRUE PHOTOSTAT COPY OF COVERING LETTER TO THE DIRECTOR OF INDUSTRIES AND COMMERCE DATGED 12/11/1992. EXT.P4 TRUE PHOTOSTAT COPY OF LETTER OF THE BANK OF BARODA DATED 9/1/93. EXT.P5 TRUE PHOTOSTAT COPY OF DEMAND NOTICE OF THE IST RESPONDENT DATED 2/4/1994. EXT.P6 TRUE PHOTOSTAT COPY OF PETITIONER'S LETTER DATED 26/4/1994 TO THE IST RESPONDENT. EXT.P7 TRUE PHOTOSTAT COPY OF PETITIONER'S LETTER DTD. 18/4/95 TO THE IST RESPONDENT. EXT.P8 TRUE PHOTOSTAT COPY OF PETITIONER'S LETTER DTD. 21/8/97 TO THE BANK OF BARODA, KANNUR. EXT.P9 TRUE PHOTOSTAT COPY OF DEMAND NOTICE OF THE IST RESPONDENT TO THE PETITIONER DTD. 1/11/01. EXT.P10TRUE PHOTOSTAT COPY OF REPLY OF THE PETITONER DTD. 28/11/01. EXT.P11TRUE PHOTOSTAT COPY OF CERTIFICATE DTD. 5/8/99 OF THE BANK OF BARODA. EXT.P12 TRUE PHOTOSTAT COPY OF DEMAND NOTICE OF THE IST RESPONDENT DTD. 18/5/2002. P.R.RAMAN, J. --------------------------- O.P.NO.19670 OF 2002 ---------------------------- DATED THIS THE 1ST DAY OF SEPTEMBER,2008 JUDGMENT Petitioner is the Managing Partner of the firm “M/s.Western Indian Beverages and Food Products”. This industrial unit was started at Kannur for the manufacture of bread and soft drinks under the brand name “Avon”. Though the unit was set up in 1983; the production could not be started for want of power supply. In 1985-86 power supply was obtained by the petitioner and being the monsoon season the production was only 30%. Subsequently, the same was increased. There are altogether 25 employees. Later, some labour trouble was started and workers were retrenched. By that time the machineries got damaged because of non-use of the same and finally as usual it became a sick unit. According to the petitioner, the authority concerned declared the same as a sick unit as evidenced by Ext.P1 certificate. Petitioner has taken steps for revival of the unit under the Sick -2- O.P.No.19670/2002 Units Revival Programme seeking benefits under the said scheme. As a first step the entire bank loan was discharged. Representations were made to the Director of Industries and Commerce and meetings were also held. Exts.P3 and P4 proceedings will support this contention. It was at that time thatv Ext.P5 demand notice was issued and the petitioner has approached this Court seeking to quash Ext.P12. By Ext.P12 dated 18/5/2002 the petitioner was demanded an amount of Rs.1,00,000/- towards the principal, Rs.1,20,580/- towards interest and Rs.34,403/- towards penal interest and unless these amounts are not paid within two weeks, she was threatened with penal consequences. 2. No counter affidavit is filed to controvert the averments made in the writ petition. Learned counsel for the petitioner further submitted that while the matter was pending before this Court, the petitioner has already remitted an amount of Rs.1,00,000/- as a condition for granting an interim order of stay. Subsequently, she received a notice informing that for -3- O.P.No.19670/2002 consideration of her application under the one-time settlement scheme, she was required to pay an amount of Rs.1,00,250/-. Since the petitioner had already remitted an amount of Rs.1,00,000/- during the pendency of the writ petition, she remitted an amount of Rs.250/- more and thus making a total amount of Rs.1,00,250/- for consideration of her application under the one-time settlement scheme. Though by letter dated 16/11/2002 the General Manager, District Industries Centre had informed the petitioner that her application could be considered under the OTS Scheme, if an amount of Rs.1,00,250/- is paid, nothing was done despite the payment as aforesaid. 3. The learned Government Pleader appearing on behalf of the State would submit that as instructed by the District Industries Centre, Ernakulam there is a new OTS Scheme now available till September, 2008. If so, the petitioner's case may also be included for consideration and the amount of Rs.1,00,250/- already paid by her will be treated as an initial payment under such scheme and the balance be determined after -4- O.P.No.19670/2002 giving her all the benefits under the OTS Scheme, whereupon the petitioner shall pay the balance demanded for availing such benefits. Till such a final decision is taken, no proceedings for recovery shall be initiated against the petitioner. Original Petition is disposed of as above. Copy of this judgment along with an application for consideration of her claim under the new one-time settlement scheme if submitted to the concerned authority within a period of two weeks, the same shall be considered in the light of the above direction. P.R.RAMAN, Judge. kcv.