IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN WEDNESDAY, THE 31ST MARCH 2010 / 10TH CHAITHRA 1932 WA.No. 182 of 2010() -------------------- AGAINST THE JUDGEMENT IN WPC.34786/2008 Dated 24/09/2009 .................... APPELLANT/2ND RESPONDENT ---------------------------- FATHIMA NAGAR CO-OPERATIVE BANK TLD. NO.R-224, EAST FORT, THRISSUR, REPRESENTED BY ITS SECRETARY. BY ADV. SRI.V.G.ARUN SRI.T.R.HARIKUMAR RESPONDENTS/PETITIONER AND RESPONDENTS 1 & 3 ----------------------------------------------- 1. SARA, AGED 68 YEARS, AMBAKKADAN HOUSE, T.C.15/1405, PARAVATTANI NH, CHUNGAM, P.O.OLLKKARA, THRISSUR. 2. THE JOINT REGISTRAR, CO-OPERATIVE SOCIETIES (GENERAL), THRISSUR. 3. THE REGISTRAR OF CO-OPERATIVE SOCIETIES, THIRUVANANTHAPURAM. ADV. SRI.C.D.DILEEP FOR R1 G.P. SMT.ANU SIVARAMAN FOR R2&3 THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 31/03/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & P.S.GOPINATHAN, JJ. .................................................................... Writ Appeal No.182 of 2010 .................................................................... Dated this the 31st day of March, 2010. JUDGMENT Ramachandran Nair, J. Appeal is filed against judgment of the learned Single Judge who directed the appellant-Bank to cancel the sale of defaulter's property in it's favour and to return the property on the defaulter paying the market value of the land. The debt that was due at the time of sale of the property was admittedly Rs.9 lakhs. Sale was on 17.12.2002. We have heard Standing Counsel appearing for the appellant-Bank and counsel appearing for first respondent. 2. In our view, the Bank cannot have grievance against the judgment because the learned Single Judge directed reconveyance of property on the defaulter paying the market value. Admittedly Bank is not engaged in real estate business nor is it's intention to retain purchased property on a regular basis. In fact, what is required for the Bank is liquidity which means it should sell the asset at the earliest and recover the amount which is working capital for it's functioning. We 2 do not know why the Bank retained the property for so long. The loan was given to the defaulter for repayment with an annual interest of 13% and default would lead to penal interest which will be 2%. In other words, 15% interest on accrued debt amount for the balance period will take care of the interest of the Bank. However, since the respondent has not filed appeal against judgment of the learned Single Judge, we feel the Bank is entitled to higher rate of compensatory interest. Considering the escalation of the land value and for the sake of finality on the market value, the determination for which no guideline is issued by this court in the impugned judgment, we allow the Writ Appeal by modifying the judgment as follows. The first respondent is directed to remit Rs.20 lakhs to the appellant-Bank within a period of one month from today. On deposit as above, the sale certificate issued by the Sales Officer in favour of the appellant-Bank will stand cancelled. The Sub Registrar will on production of copy of this judgment and on production of receipt of payment of Rs.20 lakhs by the first respondent, 3 reverse the entries made in regard to the property after sale to the Bank so that the property in records are restored to the first respondent. C.N.RAMACHANDRAN NAIR Judge P.S.GOPINATHAN Judge pms