Kerala High Court
Chev.K.M. Raju vs Kerala Financial Corporation (Kfc) on 14 January, 2022
Author: P.V.Kunhikrishnan
Bench: P.V.Kunhikrishnan
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN
FRIDAY, THE 14TH DAY OF JANUARY 2022 / 24TH POUSHA, 1943
WP(C) NO. 30608 OF 2021
PETITIONER:
CHEV.K.M. RAJU
AGED 67 YEARS
S/O.K.G.MATHAI, KOCHUTHUNDIL HOUSE, EMSOM NAGAR,
EZHAMKULAM, PARAKODE P.O., PATHANAMTHITTA 691 554
BY ADVS.
V.R.GOPU
G.RAJAN POTAYIL
RESPONDENTS:
1 KERALA FINANCIAL CORPORATION (KFC)
REP.BY ITS CHAIRMAN AND MANAGING DIRECTOR,
VELLAYAMBALAM, THIRUVANANTHAPURAM 695 033
2 THE CHIEF MANAGER
KERALA FINANCIAL CORPORATION, BRANCH OFFICE,
PATHANAMTHITTA 689 645
BY ADVS.
ADV. VENUGOPAL.M.R
DHANYA P.ASHOKAN(K/001671/2000)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 14.01.2022, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
W.P.(C).No.30608/2021
2
P.V.KUNHIKRISHNAN, J.
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W.P.(C).No.30608 of 2021
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Dated this the 14th day of January, 2022
JUDGMENT
This writ petition is filed with following prayers:
i. Declare that the charging of excessive rate of interest by the 1st respondent on loans and advances sanctioned to the petitioner under Medium and Small Scale Enterprises (MSME) and calculation of OTS amount as per Ext.P6 as illegal, arbitrary and not in conformity with OTS norms and the directives of Reserve Bank under Banking Regulations Act.
ii. Issue a writ in the nature of mandamus or direction directing the 1st respondent to rework the One Time Settlement (OTS) amount as per the norms prescribed by the 1st respondent based on PRINCIPAL + OTHER EXPENSES (P+ OE) and allow the petitioner to close the loan account after reworking of OTS amount as per norms. iii. Alternatively, issue a writ in the nature of mandamus or direction directing the 1 st respondent to consider Ext.P7 representation for granting extension of time for a period of six W.P.(C).No.30608/2021 3 months commencing from 31.12.2021 for the final and complete settlement of loan account on remittance of OTS amount of Rs.810.00 lakhs as per Ext.P6.
iv. Issue an order or direction allowing the petitioner to release the industrial unit took over by the 1 st respondent under Section 29 of SFC Act and allow the petitioner to collect rent from his tenants including M/s Civil supplies Corporation till the account is closed after reworking of the OTS amount.
v. Such other reliefs this Hon'ble Court deems fit in the nature of the case.
2. When this writ petition came up for consideration, the counsel for the petitioner submitted that he will be satisfied if a direction is given to the 1 st respondent to consider Ext.P7 in which the request is for extension of time for a period of six months for closing the account as per One Time Settlement Scheme.
3. The learned Standing Counsel for the respondents submitted that huge amount is pending from the petitioner and the One Time Settlement Scheme is given, which he can avail up to 28.02.2022.
4. After hearing both sides, I think this writ petition can be disposed of directing the 1 st respondent to consider W.P.(C).No.30608/2021 4 Ext.P7 within a time frame, after giving an opportunity of hearing to the petitioner.
Therefore, this writ petition is disposed of in the following manner:
The 1st respondent is directed to consider and pass appropriate orders in Ext.P7 in accordance to law, after giving an opportunity of hearing to the petitioner, as expeditiously as possible, at any rate, within one month from the date of receipt of a copy of this judgment.
sd/-
P.V.KUNHIKRISHNAN JV JUDGE W.P.(C).No.30608/2021 5 APPENDIX OF WP(C) 30608/2021 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE LOAN SANCTION LETTER NO.KFC/BO/PTA/967/2013 DATED 27.12.2013 Exhibit P2 TRUE COPY OF THE LOAN SANCTION LETTER NO.KFC/BO/PTA/1000/2015 DATED 29.12.2015 Exhibit P3 TRUE COPY OF THE STATEMENT OF ACCOUNT DATED 15.12.2021 SHOWING REMITTANCE MADE BY THE PETITIONER IN THE LOAN ACCOUNTS Exhibit P4 TRUE COPY OF THE REPRESENTATION SUBMITTED BY PETITIONER BEFORE THE HON'BLE FINANCE MINISTER DATED 1.8.2018 Exhibit P5 TRUE COPY OF THE MEMORANDUM OF COMPROMISE DATED 30.9.2021 EXECUTED BETWEEN THE PARTIES TO THE SUIT IN O.S.NO.31/2021 OF THE SUBORDINATE JUDGE'S COURT, PATHANAMTHITTA Exhibit P6 TRUE COPY OF THE LETTER NO.KFC/PTA/RECOVERY/254/2021 DATED 23.10.2021 ISSUED BY THE 2ND RESPONDENT Exhibit P7 TRUE COPY OF THE REQUEST DATED 30.11.2021 ADDRESSED TO THE 1ST RESPONDENT