IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE HARUN-UL-RASHID THURSDAY, THE 22ND JANUARY 2009 / 2ND MAGHA 1930 WP(C).No. 13131 of 2007(L) -------------------------------------- PETITIONER: ------------------- A.THAMSON, MANNARAKONATHU VEEDU, PERUMKIDAVILA, NEYYATTINKARA, THIRUVANANTHAPURAM. BY ADV. SRI.SUMAN CHAKRAVARTHY RESPONDENTS: ------------------------ 1. THE STATE OF KERALA, REP. BY ITS SECRETARY, DEPARTMENT OF FINANCE, GOVT.SECRETARIAT, THIRUVANANTHAPURAM. 2. THE KERALA FINANCIAL CORPORATION, REPRESENTED BY ITS CHIEF MANAGER, VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033. 3. THE CHIEF MANAGER, KERALA FINANCIAL CORPORATION, VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033. 4. THE BRANCH MANAGER, KERALA FINANCIAL CORPORATION, VELLAYAMBALAM BRANCH, THIRUVANANTHAPURAM-695 033. R1 BY GOVERNMENT PLEADER SRI.K.D.PRADEEP ADV. SRI.L.MOHANAN, SC, KFC FOR R2-4 SRI.M.M.SAYED MUHAMMED, SC, KFC FOR R1-2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22/01/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) NO.13131 OF 2007-L APPENDIX PETITIONER'S EXHIBITS: EXT.P1 TRUE COPY OF THE REPRESENTATION DATED 3/3/06 EXT.P2 TRUE COPY OF THE ORDER IN PL CASE NO.31/06 DATED 12/08/06 EXT.P3 TRUE COPY OF THE NOTICE UNDER SFC ACT DATED 27/11/06 EXT.P4 TRUE COPY OF THE REVENUE RECOVERY NOTICE DATED 28/11/06 EXT.P5 TUE COPY OF THE RECEIPT DATED 15/12/06 EXT.P6 TRUE COPY OF THE CORRESPONDENCE DATED 13/02/07 EXT.P7 TRUE COPY OF THE REPRESENTATION DATED 22/03/07 RESPONDENTS' EXHIBITS: EXT.R2(A) COPY OF STATEMENT OF ACCOUNTS / TRUE COPY / HARUN-UL-RASHID, J. ------------------------------------------- W.P.(C) No.13131 of 2007 ------------------------------------------ Dated, this the 22nd day of January, 2009 JUDGMENT The petitioner is a senior citizen who availed a loan from the Kerala Financial Corporation. The loan amount received was Rs.4,98,000/-. It is the petitioner's case that he has paid considerable amount towards the interest and principal. Since there was default in payment, respondents 2 and 3 had included the loan in default category and penal interest and additional charges were directed to be paid and the payments made later were all adjusted only towards interest. Ext.P1 is the application submitted by the petitioner requesting the third respondent to waive the additional interest imposed on him. Ext.P3 is the notice issued by the Kerala Financial Corporation under Section 29 of the State Financial Corporation Act demanding Rs.9,94,393/- with future compound interest and other expenses. Ext.P3 is followed by Ext.P4 revenue recovery notice demanding payment of Rs.9,94,393/- with 7.5% additional cost. 2. Petitioner applied for including his loan transaction in the O.T.S. scheme and held discussions with the Corporation. By W.P.(C) NO.13131 of 2007 2 Ext.P6 letter dated 13.2.2007, the third respondent informed the petitioner that the offer made by the petitioner is not acceptable to the Corporation and, therefore, his request for including the loan transaction under the O.T.S. scheme is rejected. Petitioner is directed to pay the arrears failing which revenue recovery proceedings will be initiated without further notice. 3. The petitioner submitted that, in fact, his proposal was originally accepted by the Corporation and under instructions from the Corporation petitioner remitted Rs.95,000/- towards the O.T.S. advance. Ext.P5 is the receipt. 4. Learned counsel for the Corporation brought to my notice paragraphs 4 and 5 of the counter affidavit filed by the second respondent and submitted that the repayment of the loan by the petitioner was highly irregular resulting in huge arrears. It is also submitted by the counsel for the Corporation that as per the O.T.S. scheme, the O.T.S. amount arrived at in the case of the petitioner is Rs.15.20 lakhs which is much above the present balance outstanding. Whatever be the reasons, the Corporation did not accept the offer made by the petitioner for clearing the arrears. At the same W.P.(C) NO.13131 of 2007 3 time, it is stated in the counter affidavit, that the Corporation has decided to grant concession of waiver of portion of penal interest of Rs.15,000/- and the same was communicated to the petitioner. According to the Corporation, after deducting the said amount, the balance amount payable as on 1.4.2007 is Rs.9,13,132/-. Ext.R2(a) is the statement of account produced by the Corporation. 5. Learned counsel for the petitioner submitted that Rs.9,13,132/- includes penal interest, collection charges and surcharge. 6. The petitioner, from his conduct, is a person who had expressed his willingness to pay off the debt and he was making every attempt to pay off the debt at the subsidised rate. The Corporation can also reconsider their decision not to offer the benefit under the O.T.S. scheme to the petitioner and pass appropriate orders granting him the benefit if not under the O.T.S. scheme by waiving the penal interest and other charges to the extent possible. The Corporation may also consider whether they can offer any other concession to the petitioner at their discretion. The Corporation shall pass orders within a period of four months from W.P.(C) NO.13131 of 2007 4 the date of receipt of a copy of this judgment. In the meanwhile the coercive proceedings initiated and continued shall be kept in abeyance. Writ petition is disposed of as above. HARUN-UL-RASHID (JUDGE) vns