Kerala High Court
Shiji C.R vs Kerala State Financial Enterprises ... on 10 March, 2025
Author: Murali Purushothaman
Bench: Murali Purushothaman
WP(C) NO.7306 OF 2025 1
2025:KER:20428
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
MONDAY, THE 10TH DAY OF MARCH 2025 / 19TH PHALGUNA, 1946
WP(C) NO.7306 OF 2025
PETITIONER:
SHIJI C.R, AGED 49 YEARS,
S/O C.K RAJAPPAN OMEPARAMBIL HOUSE
VYTTILA (P.O), ERNAKULAM, PIN - 682019
BY ADVS.
SHINTO THOMAS
RAM VINAYAK
MOHAMED ASLAM V.P.
RESPONDENTS:
1 KERALA STATE FINANCIAL ENTERPRISES (KSFE)
ALUVA MAIN BRANCH OLD PRIVATE BUS STAND BUILDING
SUB JAIL ROAD ERNAKULAM REPRESENTED BY BRANCH
MANAGER, PIN - 682301
2 DEPUTY COLLECTOR (RR), OFFICE OF THE DEPUTY
COLLECTOR (RR) KSFE LTD. P.B NO. 510 BHADRATHA
MUSEUM ROAD THRISSUR, PIN - 680020
BY SRI.SALIL NARAYANAN, SC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 10.03.2025, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
WP(C) NO.7306 OF 2025 2
2025:KER:20428
JUDGMENT
The loan availed by the petitioner from the 1st respondent Kerala State Financial Enterprises Ltd. [for short, 'the KSFE'] fell in arrears. The 1st respondent initiated recovery proceedings. The petitioner has filed this writ petition for the following reliefs:
"i) Issue a writ of mandamus directing Respondent No.1 to consider the amount of Rs.1,750,000/- already remitted by the petitioner and adjust it against the alleged arrears, ensuring a fair and accurate determination of liability, in strict compliance with Exhibit P3 order of this Hon'ble Court, and further direct the respondent to close the loan and release the property of the petitioner.
ii) Issue a writ of mandamus directing the respondent to consider the amount of Rs 2,565,568/ received under the head of dividends in the defaulted chits of the petitioner while determining the total outstanding amount and to release the said amount to the petitioner, as WP(C) NO.7306 OF 2025 3 2025:KER:20428 the petitioner is not a defaulted subscriber under the Chit Funds Act and is entitled to receive the dividend.
iii) Direct Respondents to consider Exhibit P8 and Exhibit P10 representations submitted by the petitioner in a time-bound manner and further to stop recovery proceedings as per Exhibit P9.
iv) Direct the Respondents to compensate the petitioner for the financial distress caused due to their arbitrary actions, and award litigation costs incurred in approaching this Hon'ble Court for justice."
2. When the writ petition came up for consideration today, the learned Counsel for the petitioner submitted that, the petitioner intends to move the Arbitrator under Section 64 of the Chit Funds Act, 1982. It is further submitted that, to enable the petitioner to avail the said remedy, coercive proceedings against him may be kept in abeyance.
3. Heard the learned Counsel for the WP(C) NO.7306 OF 2025 4 2025:KER:20428 petitioner and the learned Standing Counsel for KSFE.
4. The learned Standing Counsel for the KSFE submits that the petitioner has not made any remittance after 2013.
5. Since is submitted that the petitioner is intending to move the Arbitrator under Section 64 of the Chit Funds Act, this writ petition is disposed of. To enable the petitioner to avail such remedy, all coercive proceedings against him shall stand deferred for a period of one month.
Sd/-
MURALI PURUSHOTHAMAN JUDGE sp/11/03/2025 WP(C) NO.7306 OF 2025 5 2025:KER:20428 APPENDIX OF WP(C) 7306/2025 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE ADVERTISEMENT MADE BY RESPONDENT NO. 1 REGARDING THE LUCKY YEAR CHIT VIDE ORDER GOV (RT) 530/2012 TD DATED 24.07.2012 Exhibit P2 THE TRUE COPY OF THE STATEMENT ISSUED BY RESPONDENT NO.1, CONFIRMING THAT THE PETITIONER HAS PAID MORE THAN FIVE INSTALLMENTS IN ALL FOUR CHITS AND THAT 10% OF THE TOTAL CHIT AMOUNT WAS REMITTED, DATED 19.09.2020 Exhibit P3 THE TRUE COPY OF THE JUDGMENT IN WPC NO.
33866 OF 2014, DATED 29.10.2019 Exhibit P4 THE TRUE COPY OF THE REPRESENTATION MADE BY THE PETITIONER, DATED 13.11.2019 Exhibit P5 THE TRUE COPY OF THE REPLY GIVEN BY RESPONDENT NO.1 TO THE PETITIONER, WHICH THE PETITIONER OBTAINED UNDER RTI, DATED 17.11.2023 Exhibit P6 THE TRUE COPY OF THE DEMAND NOTICE SENT BY THE RESPONDENT NO.2 TO THE PETITIONER, DATED 11.10.2022 Exhibit P7 THE TRUE COPY OF THE AWARD PASSED IN THE LOK ADALATH, DATED 17.02.2023, WITH PLP NO 3746/2023 Exhibit P8 THE TRUE COPY OF THE REPRESENTATION MADE BY THE PETITIONER BEFORE THE RESPONDENT NO.2, DATED 17.02.2023 WP(C) NO.7306 OF 2025 6 2025:KER:20428 Exhibit P9 THE TRUE COPY OF THE DEMAND NOTICE SENT BY RESPONDENT NO. 2 TO THE PETITIONER, DATED 10.12.2024 IS PRODUCED HEREWITH AND MARKED AS EXHIBIT P9.
Exhibit P10 THE TRUE COPY OF THE REPRESENTATION MADE BY THE PETITIONER BEFORE RESPONDENT NO 1, DATED 30.12.2024 Exhibit P11 THE TRUE COPY OF THE REPLY SENT BY RESPONDENT NO.2 TO THE PETITIONER, DATED 14.01.2025 Exhibit P12 THE TRUE COPY OF THE LETTER SENT BY THE RESPONDENT NO.1 TO THE PETITIONER REGARDING THE SUBSTITUTION OF THE CHITS, DATED 28.01.2015