Kerala High Court
Chev K.M Raju vs Managing Director on 15 March, 2019
Author: Shaji P.Chaly
Bench: Shaji P.Chaly
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE SHAJI P.CHALY
FRIDAY ,THE 15TH DAY OF MARCH 2019 / 24TH PHALGUNA, 1940
WP(C).No. 7228 of 2019
PETITIONER/S:
CHEV K.M RAJU
AGED 75 YEARS
M/S EMSON HI MART, EMSON NAGAR, EZHAMKULAM, PARAKODE
P.O.ADOOR , PATANATHITTA.
BY ADV. SRI.MANSOOR.B.H.
RESPONDENT/S:
1 MANAGING DIRECTOR
KERALA FINANCIAL CORPORATION, VELLAYAMBALAM,
THIRUVANANTHAPURAM 695 033
2 CHIEF MANAGER,
KERALA FINANCIAL CORPORATION, PAZHAMANNIL JESSY
TOWERS, COLLEGE ROAD, PATHANAMTHITTA 689 645.
BY ADV. SRI.BASANT BALAJI, SC, KERALA FINANCIAL
CORPORATION
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
15.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No. 7228 of 2019
2
JUDGMENT
Petitioner had availed two loans from the Kerala Financial Corporation (KFC), totalling to an amount of Rs.9 Crores, which were availed in the year 2013 and 2015 respectively, for the purpose of construction of a shopping complex by creating equitable mortgage against the property and building belonging to the petitioner. According to the petitioner, substantial amounts were paid towards loan account. But due to business failure, petitioner could not remit the amount as per the agreement executed by and between the parties. To put it short, Ext.P4 notice is issued by the KFC against the tenants occupying the building in question, directing them to vacate the premises since, KFC is proceeding with, as per the provisions of State Financial Corporation Act (hereinafter referred to as 'SFC Act' for short). It is aggrieved by the coercive action taken by the KFC, this writ petition is filed. Even though petitioner has submitted Ext.P5 representation, it is also not considered.
2. I have heard learned Counsel for the petitioner and the learned Standing Counsel for the Corporation and perused the WP(C).No. 7228 of 2019 3 pleadings and documents on record.
3. Learned standing Counsel pointed out that, as on 31.3.2018, petitioner has deposited an amount of Rs.4,28,00,000/-. Later, petitioner approached the Corporation and six months period was granted. However, petitioner has not made the payment. Later petitioner approached the Finance Minister and the Finance Minister granted stay of coercive action on the petitioner remitting 20% of the amount outstanding and the balance in eight instalments. However, the said order is also violated by the petitioner. It was thereupon that a notice dated 2.3.2019 was issued directing to pay the amount on or before 8.3.2019 as per Section 29 of the SFC Act. However, petitioner did not make the payment and rushed to this Court challenging the action of the KFC.
4. I have considered the rival submissions made across the Bar.
5. Learned Counsel for the petitioner submitted that petitioner is prepared to pay a reasonable amount in order to consider Ext.P5 representation and any coercive action pertaining to Ext.P4 evicting the tenants from the building may be avoided.
WP(C).No. 7228 of 20194
6. Taking into account the respective submissions made across that Bar and evaluating the situation, I am of the considered opinion that, Ext.P5 can be directed to be disposed of, however on terms. Taking into account the outstanding balance amount of Rs.9,73,00,000/-, petitioner is directed to pay an amount Rs.1,00,00,000/- (Rupees One Crore only) on or before 31.3.2019 and yet another Rs.1,00,00,000/- (Rupees One Crore only), within one month thereafter. If the amount is paid as directed above, Ext.P5 shall be considered by the 1 st respondent, and attain finality to the same, at the earliest possible time and at any rate within a month after the payment is effected by the petitioner as directed above. Coercive steps on the basis of notice issued under the SFC Act as well as Ext.P4 shall be put on hold till such time the directives are complied with.
The writ petition is disposed of accordingly.
Sd/ SHAJI P.CHALY JUDGE Jm/ WP(C).No. 7228 of 2019 5 APPENDIX PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE SANCTION LETTER BEARING NO KFC/BO/PTA/967/2013 EXHIBIT P2 TRUE COPY OF THE SANCTION LETTER BEARING 29.12.2015 BEARING NO KFC/BO/PTA/000/2015 EXHIBIT P3 TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER BEFORE THE FIRST RESPONDENT EXHIBIT P4 TRUE COPY OF THE NOTICE ISSUED BY THE SECOND RESPONDENT EXHIBIT P5 TRUE COPY OF THE REPRESENTATION DATED 5.3.2019 SUBMITTED BY THE PETITIONER TO THE FIRST RESPONDENT AND ITS RECEIPT