IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC WEDNESDAY, THE 31ST OCTOBER 2007 / 9TH KARTHIKA 1929 WP(C).No. 31766 of 2007(F) -------------------------- PETITIONER: ------------ NITHIN MATHEW, S/O.K.T.MATHEW, KATTIVEETIL, KANNUR, KANNUR DISTRICT. THALASSERY TALUK, MUZHAKUNNU P.O. BY ADV. SRI.BABU S. NAIR RESPONDENTS: ------------- 1. THE KERALA FINANCIAL CORPORATION, BRANCH OFFICE, 1ST FLOOR, FINANCE TOWERS, KALOOR, REPRESENTED BY ITS CHIEF MANAGER. 2. M.J.JOSEPH, S/O.JOSEPH, MULLAKKARIYIL HOUSE, KURIYICHIRA, OLLUR, THRISSUR DISTRICT.. BY ADV. SRI.M.M.SAYED MUHAMMED, SC, KFC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31/10/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. = = = = = = = = = = = = = = W.P.(C) No. 31766 OF 2007 I = = = = = = = = = = = = = = Dated this the 31st October, 2007 J U D G M E N T Petitioner claims that he has purchased a hotel building which originally belonged to the 2nd respondent. The 2nd respondent had availed of financial assistance from the 1st respondent mortgaging the said property. In view of the defaults committed by the 2nd respondent, the 1st respondent-KFC had initiated proceedings and Ext. P2 is the notice issued by the KFC under Section 29 of the State Financial Corporations Act, 1951. Petitioner submits that while so, he has entered into an agreement with the owner of the property for purchasing the same. Petitioner also submits that he has made substantial improvements and also cleared other liabilities. He also claims that he had paid the fee payable for renewal of FL-3 and got the license renewed. In these circumstances, petitioner wants to avoid sale of the property by paying the WPC No.31766/07 -2- entire amount to the KFC and prays for a reasonable time for raising necessary funds. 2. I heard counsel for the parties. 3. Now that the petitioner and the 2nd respondent have come to an agreement, for the disposal of the assets as stated above, I think, reasonable time should be given to the parties for discharging the liability due to the 1st respondent. Accordingly, I dispose of this writ petition with the following directions: 4. That the petitioner/ 2nd respondent shall pay the entire amount that is due to the 1st respondent within 60 days from today, in which event, the payment shall be accepted by the 1st respondent in the account of the 2nd respondent. In order to enable the parties to discharge the liability as above, I also direct that further proceedings pursuant to Ext. P2 shall be deferred for a period of 60 days from today. 5. It is directed that if the petitioner commits default in discharging the liability within 60 days as above, the KFC will be entitled to proceed with the matter without any further notice. Needless to say, that in terms of any scheme that is adopted by the 1st WPC No.31766/07 -3- respondent if the 2nd respondent is entitled to get any concessions in the matter, it will be open to the petitioner to approach the 1st respondent claiming the benefits thereof. ANTONY DOMINIC JUDGE jan/-