Kerala High Court
Mariyumma vs Kerala Financial Corporation on 4 April, 2025
Author: Murali Purushothaman
Bench: Murali Purushothaman
2025:KER:29500
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
FRIDAY, THE 4TH DAY OF APRIL 2025 / 14TH CHAITHRA, 1947
WP(C) NO. 13821 OF 2025
PETITIONER:
MARIYUMMA
AGED 50 YEARS
W/O THAHA MULLALI, 'ZAYAN', NEAR KRISHNA BHAVAN,
KANNAPURAM VILLAGE, CHERUKUNNU P.O, KANNUR DISTRICT,
PIN - 670 301.
BY ADVS.
N.ANAND
PRASANNA C.
TANOOSHA PAUL
AMEER SALIM
RESPONDENTS:
1 KERALA FINANCIAL CORPORATION
VELLAYAMBALAM THIRUVANANTHAPURAM KERALA, INDIA
REPRESENTED BY ITS CHAIRMAN, PIN - 695 033.
2 GENERAL MANAGER
KERALA FINANCIAL CORPORATION, THIRUVANANTHAPURAM,
PIN - 695 033.
3 GENERAL MANAGER
KERALA FINANCIAL CORPORATION, KOZHIKODE, PIN - 673004
4 ASSISTANT GENERAL MANAGER
BRANCH HEAD - SARB (NZ) KERALA FINANCIAL CORPORATION,
KOZHIKODE, PIN - 673 004.
5 CHIEF MANAGER
KERALA FINANCIAL CORPORATION, THAVAKKARA, KANNUR,
WP(C) NO.13821 OF 2025 : 2 :
2025:KER:29500
PIN - 670 002.
6 BRANCH MANAGER
KERALA FINANCIAL CORPORATION, BRANCH OFFICE, URBAN
SQUARE, KANNUR UNIVERSITY ROAD, THAVAKKARA, KANNUR
DISTRICT, PIN - 670 002.
BY ADVS.
ADV. VENUGOPAL M.R.
S. MUHAMMAD ALIKHAN(K/000644/2020)
ANJANA S. RAJ(K/001318/2024)
DHANYA P.ASHOKAN (SR.)(K/001671/2000)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.04.2025,
THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO.13821 OF 2025 : 3 :
2025:KER:29500
JUDGMENT
The petitioner had availed loan from the Kerala Financial Corporation (for short, 'KFC'), the 1st respondent. On default in payment of instalments, the 1st respondent initiated recovery proceedings and issued Ext.P1 revenue recovery notice.
2. The petitioner had earlier approached this Court by filing W.P.(C) No.30580 of 2023 and this Court, by Ext.P3 judgment, directed the petitioner to approach the KFC for the benefit of One Time Settlement (for short, OTS') after remitting such amount the KFC would stipulate. Since the petitioner could not remit the amount as required by the KFC, the petitioner filed W.P. (C) No.20736 of 2024 for direction to the KFC to extend the benefit of OTS by accepting 10% of the outstanding WP(C) NO.13821 OF 2025 : 4 : 2025:KER:29500 amount. This Court, by judgment dated 10.06.2024, directed the petitioner to pay 10% of the outstanding amount within a period of one month and further directed the KFC to consider the petitioner's application for settlement, after affording her an opportunity of being heard.
3. Pursuant thereto, the KFC issued Ext.P4 communication extending the benefit of the compromise settlement scheme for payment of an amount of Rs.95 Lakhs on or before 31.03.2025. The petitioner remitted an amount of Rs.10.70 lakhs being 10% of the outstanding amount. Since the petitioner could not raise the amount as per Ext.P4 within the time stipulated therein, she filed W.P.(C) No.11117 of 2025 for a direction to the KFC to permit her to remit the balance WP(C) NO.13821 OF 2025 : 5 : 2025:KER:29500 amount of Rs.84.3 lakhs within a period of 10 months. The said writ petition was disposed of by this Court by Ext.P6 judgment directing the petitioner to approach the 4th respondent with appropriate representation within two days and further directing the 4th respondent to consider the same and pass appropriate orders on or before 30.03.2025 and to communicate the same to the petitioner. In terms of the said direction, the petitioner preferred Ext.P7 representation before the 4th respondent which was rejected as per Ext.P8.
4. From Ext.P8, it is seen that the balance outstanding amount is Rs.108.89 lakhs. It is stated therein that the attempt of the petitioner is to delay the recovery process and that if the petitioner does not remit the amount as per the compromise settlement on or WP(C) NO.13821 OF 2025 : 6 : 2025:KER:29500 before 31.03.2025, the KFC will proceed with recovery proceedings. The petitioner has filed this writ petition challenging Exts.P1 and P8 and for a direction to permit her to pay the amount covered by Ext.P4 within four months.
5. A counter affidavit has been filed on behalf of the 4th respondent wherein it is contended , inter alia, that since the petitioner has not complied with the terms of the compromise settlement, the KFC is left with no option but to initiate recovery proceedings against the mortgaged property. It is stated that the balance outstanding as on 29.03.2025 of the loan account is Rs.109.05 lakhs.
6. Heard Adv. N. Anand, the learned Counsel for the petitioner and Smt. Dhanya P. Ashokan, the learned WP(C) NO.13821 OF 2025 : 7 : 2025:KER:29500 Senior Counsel for the KFC.
7. The learned Senior Counsel for the KFC submits that the petitioner was granted the benefit of compromise settlement as per Ext.P4. As per the terms of the compromise settlement, the amount has to be remitted on or before 31.03.2025. Since the petitioner failed to remit the amount as stipulated in Ext.P4, she cannot be extended the benefit of the compromise settlement scheme. The compromise settlement scheme expired on 31.03.2025. Since the petitioner did not remit the amount as per the compromise scheme, the petitioner is not entitled to any waiver of interest and is liable to pay the entire outstanding amount. The learned Senior Counsel, however, submits that the KFC is willing to show indulgence to the petitioner provided WP(C) NO.13821 OF 2025 : 8 : 2025:KER:29500 she pays the balance outstanding amount in the loan account in reasonable instalments.
8. The learned Counsel for the petitioner submits that the petitioner may be given the benefit of compromise settlement, if any, introduced after 31.03.2025.
9. The learned Standing Counsel submits that if such a Scheme is floated, the case of the petitioner will be considered as per the Scheme. However, in the meantime, the petitioner can be permitted to pay the outstanding amount in installments. It is further submitted that, if the petitioner pays 25% of the amount outstanding within 30.04.2025, the KFC will abstain from initiating coercive proceedings against her.
10. The learned Counsel for the petitioner submits WP(C) NO.13821 OF 2025 : 9 : 2025:KER:29500 that the petitioner will remit an amount of Rs.25 Lakhs on or before 30.04.2025 and the balance amount, in 15 equal monthly installments. The learned Senior Counsel for KFC agrees to the said submission.
11. In the facts and circumstances of the case, the writ petition is disposed of with the following directions:-
a) The petitioner shall pay an amount of Rs.25 Lakhs on or before 30.04.2025 and the balance amount outstanding shall be paid along with accrued interest and applicable charges in 15 equal monthly instalments commencing from 01.06.2025.
b) If the petitioner defaults payment of any of the instalments, it will be open to the WP(C) NO.13821 OF 2025 : 10 : 2025:KER:29500 respondents to proceed against her in accordance with law.
c) To enable the petitioner to pay the amount in instalments as aforesaid, all coercive proceedings against the petitioner shall stand deferred.
d) It will also be open to the petitioner to apply for Compromise Settlement as and when the KFC launches such a scheme. In such case, the KFC shall consider the request of the petitioner in accordance with law.
Sd/-
MURALI PURUSHOTHAMAN JUDGE SRJ WP(C) NO.13821 OF 2025 : 11 : 2025:KER:29500 APPENDIX OF WP(C) 13821/2025 PETITIONER'S EXHIBITS EXHIBIT P1 A TRUE COPY OF THE REVENUE RECOVERY NOTICE NO. 020280710/3/90/91, DATED 30.06.2023 FOR RS.84,87,258.00/- ISSUED BY RESPONDENT NO. 6. EXHIBIT P2 TRUE COPY OF THE JUDGMENT DATED 14.07.2023 ISSUED BY THIS HON'BLE COURT IN W.P(C) NO. 23090/2023.
EXHIBIT P3 A TRUE COPY OF THE JUDGMENT DATED 27.08.2023 PASSED BY THIS HON'BLE COURT IN WP(C) NO. 30580/2023.
EXHIBIT P4 A TRUE COPY OF THE COMPROMISE SETTLEMENT
INTIMATION LETTER IN NO.
KFC/SARB/NZ/020280710/688/2024-25 DATED 11.03.2025. EXHIBIT P5 A TRUE COPY OF THE STATEMENT DATED 24.03.2025 FILED BY RESPONDENTS IN WP(C) NO. 11117/2025. EXHIBIT P6 A TRUE COPY OF THE JUDGMENT DATED 25.03.2025 PASSED BY THIS HON'BLE COURT IN WP(C) NO. 11117/2025.
EXHIBIT P7 A TRUE COPY OF THE REPRESENTATION DATED 26.03.2025 PREFERRED BY PETITIONER BEFORE RESPONDENT NO.1.
EXHIBIT P8 A TRUE COPY OF THE PROCEEDINGS DATED 28.03.2025 OF RESPONDENT NO. 4.