IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.P.RAY MONDAY, THE 31ST JANUARY 2011 / 11TH MAGHA 1932 WA.No. 220 of 2008() -------------------- AGAINST THE JUDGEMENT/ORDER IN WPC.35519/2007 Dated 06/12/2007 .................... APPELLANT(S): PETITIONERS ------------------------- 1. A.MOHAMMED ISMAIL, ANANDAVILASAM BUNGLOW, ANAKUZHY, PULLAMPARA P.O. THIRUVANANTHAPURAM - 695 607. 2. A.SHABARBAN BEEVI, ANANDAVILASAM BUNGLOW, ANAKUZHY, PULLAMPARA P.O. THIRUVANANTHAPURAM - 695 607. BY ADV. SRI.B.RAGUNATHAN SRI.V.V.MATHEW SRI.R.SRINATH RESPONDENT(S): RESPONDENTS -------------------------- 1. KERALA FINANCIAL CORPORATION, REPRESENTED BY MANAGING DIRECTOR, KERALA FINANCIAL CORPORATION, VELLAYAMBALAM, THIRUVANANTHAPURAM - 695 033. 2. CHIEF GENERAL MANAGER, KERALA FINANCIAL CORPORATION, VELLAYAMBALAM, THIRUVANANTHAPURAM - 695 033. ADV. SRI.L.MOHANAN, SC, KFC FOR R1 & 2 SRI.M.M.SAYED MUHAMMED, SC, KFC FOR R1&2 THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 31/01/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR, & BHABANI PRASAD RAY, JJ. -------------------------------------------- W. A. No. 220 of 2008 -------------------------------------------- Dated this the 31st day of January, 2011 JUDGMENT Ramachandran Nair, J. Writ Appeal is filed against the judgment of the learned single Judge directing the respondent-Corporation to give a statement of liability to the appellant to make payment and get the documents released. During pendency of this Writ Appeal, appellant has raised a specific case of unusual waiver done by Kerala Financial Corporation to another defaulter, namely, M/s. Indira Enterprises. We therefore directed the Corporation to produce details of waiver granted to M/s. Indira Enterprises. Standing counsel for the Corporation has produced statement of accounts giving details of loan given to M/s. Indira Enterprises, and settled by it. Even though we find that substantial amount of interest is waived in that case, what is seen is that the amount of loan advanced is Rs. 6.27 lakhs and after paying Rs. 8.77 lakhs, the party settled the liability on remittance of Rs. 15.5 lakhs. Corporation has explained the circumstances under which substantial 2 amount of interest was waived in that case which is on account of inability of the Corporation to recover the amount. Further, they have stated that the loan advanced was Rs. 6.27 lakhs and in the course of several years, party has paid nearly Rs. 24 lakhs. We therefore do not propose to consider the legality or propriety of the waiver granted by the Corporation to that defaulter. So far as the appellant is concerned, we notice that in an earlier round of litigation, this Court directed reduction of interest from 16.5 per cent to 12.5 per cent and the Corporation admittedly complied with the said direction. Under interim orders issued by the Division Bench in this Appeal, Corporation has waived entire penal interest and the appellant has made payment and got the documents released. We therefore do not think there is any need to consider the correctness of the judgment under appeal in view of the subsequent developments of appellant settling the liability and taking away the documents. However, there will be direction to the Corporation to verify the discrepancy or mistake brought out by the Chartered Accountant engaged by the appellant, and on verification, if excess amount is 3 mistakenly recovered from the appellant, which is stated by the appellant to be Rs. 1,26,612/-, the same will be refunded to the appellant. We therefore close the Writ Appeal as infructuous. (C.N.RAMACHANDRAN NAIR) Judge. (BHABANI PRASAD RAY) Judge. kk 4