IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR WEDNESDAY, THE 23RD JULY 2008 / 1ST SRAVANA 1930 WP(C).No. 19162 of 2004(F) -------------------------- PETITIONER: ------------ V.P.AYAMMED KUTTY, S/O.MOYINKUTTY HAJEE, VARALATT PARAMBATH, P.O.VAVAD, KODUVALLY VIA, KOZHIKODE DIST. BY ADV. SRI.K.A.SALIL NARAYANAN RESPONDENTS: ------------- 1. THE KERALA FINANCIAL CORPORATION, VELLAYAMBALAM, TRIVANDRUM REP. BY ITS CHAIRMAN. 2. THE DISTRICT OFFICE OF KERALA FINANCIAL CORPORATION, KALPETTA REP. BY THE DISTRICT MANAGER. 3. THE DEPUTY TAHSILDAR, REVENUE RECOVERY ( K.F.C.) KOZHIKODE. 4. T.K.MAJEED, S/O.MOIDEEN KUNJU, THANNIKUNDUNGAL HOUSE, VALIYAPARAMBA P.O.KODUVALLY VIA, KOZHIKODE 673 572. ADDL. RESPONDENT: 5. M/S.TARCAR AUTOMOBILES, PANAJI, GOA, REP. BY ITS MANAGER. (ADDL. 5TH RESPONDENT IS IMPLEADED AS PER ORDER DT.28.7.2004 IN I.A. 9652/2004.) BY ADV. SRI.SUNNY MATHEW FOR R4 R1 TO R3 BY ADV. SRI.V.B.UNNIRAJ, SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 23/07/2008, THE COURT ON 23/07/2008 DELIVERED THE FOLLOWING: APPENDIX PETITIONER'S EXHIBITS: P1: TRUE COPY OF COMPLAINT MADE BY THE PETITIONER BEFORE SUPT. OF POLICE (VIGILANCE), KOZHIKODE DT.9.1.2002. P2: TRUE COPY OF FIR IN CRIME NO.97/03 OF KALPETTA POLICE STATION. P3: TRUE COPY OF NOTICE ISSUED BY R3 DT.11.3.2004. P4: TRUE COPY OF NOTICE ISSUED BY R3 TO THE SISTER OF THE PETITIONER, WAYANAD DT.11.3.2004. P5: TRUE COPY OF COMPLAINT MADE BY PETITIONER BEFORE THE CHIEF MINISTER WITH COPY TO 1ST, 2ND AND 3RD RESPONDENTS AND OTHERS DT.125.4.2004. P5A: TRUE COPY OF ACKNOLWEDGEMENT EVIDENCING RECEIPT OF EXT.P5. P6: TRUE COPY OF PAPER REPORT, WHICH APPEARED IN MADHYAMAM DAILY ON 1.4.2004. P7: TRUE COPY OF LETTER DT.23.11.2004. P8: TRUE COPY OF REGISTRATION PARTICULARS IN RESPECT OF VEHICLE NO.KL- 11B-3412. RESPONDENT'S EXHIBITS: R1(a): TRUE COPY OF INVOICE DT.23.7.93. R1(b): TRUE COPY OF RECEIPT DT.4.8.93. R1(c): TRUE COPY OF LETTER ADDRESSED BY R4. R1(d): TRUE COPY OF LETTER DT.9.11.93. R1(e): TRUE COPY OF LOAN AGREEMENT. R1(f): TRUE COPY OF LETTER DT.18.6.93. R1(g): TRUE COPY OF RC BOOK. R1(h): TRUE COPY OF O.P. NO.23965/98. TRUE COPY PA TO JUDGE C.N.RAMACHANDRAN NAIR, J. .................................................................... W.P.(C) No.19162 of 2004 .................................................................... Dated this the 23rd day of July, 2008. JUDGMENT The petitioner is challenging recovery proceedings for recovery of loan availed by 4th respondent for purchase of a vehicle against guarantee furnished by the petitioner. Even though petitioner as surety is liable, this court directed both KFC and the State to find out why action was not taken against 4th respondent who misled the Corporation, obtained loan and diverted loan amount for other purposes. So far no proper report is filed either by the Government or by the KFC. The petitioner being surety for the loan can be proceeded against for recovery. It is conceded that application for settlement is also filed by the petitioner. In the circumstances, I close the W.P. leaving freedom to the petitioner to proceed for settlement of liability, failing which recovery can be made from the petitioner and the 4th respondent. C.N.RAMACHANDRAN NAIR Judge pms