IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN THURSDAY, THE 16TH SEPTEMBER 2010 / 25TH BHADRA 1932 WP(C).No. 13093 of 2010(J) ---------------------------------------- PETITIONER(S): ------------------------- GEORGEKUTTY.P.T, TOM VILLA, INDUSTRIAL NAGAR.P.O, CHANGANASSERY, KOTTAYAM. BY ADV. SRI.T.M.ABDUL LATHEEF RESPONDENT(S): ---------------------------- 1. KERALA KHADI GRAMA VYAVASAYA BOARD, REPRESENTED BY ITS CHAIRMAN, THIRUVANANTHAPURAM. 2. SECRETARY, KERALA KHADI GRAMA VYAVASAYA BOARD, THIRUVANANTHAPURAM. 3. THE DISTRICT COLLECTOR, KOTTAYAM. R1 & R2 BY ADV. SRI. K.P.HARISH, SC R3 BY GOVERNMENT PLEADER SRI. BASANT BALAJI THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.13093/2010 J APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE NOTICE NO.K.B.9349/2004/R2(CBC) DTD. 10/11/2009 ISSUED BY THE 2ND RESPONDENT. P2: COPY OF THE ORDER NO.KB.4921/96 DTD. 5/02/1996. P3: COPY OF THE PETITION DTD. 9/03/2005 SUBMITTED BEFORE THE HONOURABLE MINISTER. P4: COPY OF THE PETITION DTD. 10/01/2010 SUBMITTED BEFORE THE FIRST RESPONDENT. RESPONDENT'S EXHIBITS: N I L /TRUE COPY/ P.S.TO JUDGE Kss C.N.RAMACHANDRAN NAIR & K. SURENDRA MOHAN, JJ. ------------------------------------------------------------ W.P(C) NO:13093 OF 2010 J ----------------------------------------------------------- Dated this the 16th September, 2010. JUDGMENT Ramachandran Nair, J. The writ petition is filed challenging recovery proceedings initiated for recovery of arrears of loan availed by the petitioner from Khadi Board. 2. We have heard counsel appearing for the petitioner and standing counsel appearing for the Khadi Board. The loan availed in 1996 by the petitioner was Rs.9.5 lakhs for starting stone cutting and polishing unit. The loan was to be repaid in 24 quarterly instalments. However, instalment default lead to recovery proceedings which is under challenge in this writ petition. The ground raised is mainly limitation. However, we notice that petitioner himself has produced Ext.P3 which is the representation given by him to the then Minister challenging revenue recovery proceedings initiated by the Khadi Board earlier. At that time petitioner had no challenge against recovery on the ground of limitation. Further, the loan is covered by mortgage and considering the six years time provided for payment we find that WPC 13093/2010 2 the petitioner's challenge against recovery and ground of limitation is absolutely untenable. 3. If petitioner utilised the funds for the purpose for which it was taken, we are sure petitioner would have been able to repay the loan without any difficulty as the granite industry in the State is thriving for the last several years on account of the steady construction of buildings. We do not find any merit in the challenge against the recovery proceedings. However, we feel that the rate of interest payable at 17% itself is very high and in our view particularly on account of delay in recovery we feel petitioner can be exonerated from payment of penal interest provided the debt amount together with simple interest at contract rate that is 17% on the balance amount is paid within two months from now. However, if payment is not made as above then waiver of penal interest granted by us will stand automatically vacated and interest could be received in terms of the agreement along with debt amount. If petitioner wants to avail the benefit under this judgment petitioner should give an undertaking to the Board that liability will be settled in terms of the judgment and in that event Board will give a statement of account recalculating balance loan amount after adjustment of payments already made with simple interest at WPC 13093/2010 3 contract rate up to two months from today. If undertaking is given recovery will be kept in abeyance for two months and if undertaking is not given respondents can straight away proceed with recovery now itself. C.N.RAMACHANDRAN NAIR Judge K. SURENDRA MOHAN Judge jj WPC 13093/2010 4