High Court Kerala High Court

P.Paul vs Kerala State Development … on 14 October, 2010

Kerala High Court
P.Paul vs Kerala State Development … on 14 October, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 27427 of 2010(C)


1. P.PAUL, AGED 49 YEARS,
                      ...  Petitioner

                        Vs



1. KERALA STATE DEVELOPMENT CORPORATION
                       ...       Respondent

2. THE DEPUTY TAHSILDAR (RR),

3. THE VILLAGE OFFICER,

4. K.R.DAS, PUTHOOR HOUSE,

5. Z.MATHAI, HEADMASTER (RETIRED),

                For Petitioner  :SRI.JOICE GEORGE

                For Respondent  :SRI.M.K.CHANDRA MOHANDAS

The Hon'ble MR. Justice C.K.ABDUL REHIM

 Dated :14/10/2010

 O R D E R
                C.K. ABDUL REHIM, J
                -------------------------------
               WP(C) NO. 27427 OF 2010
              -------------------------------------
          Dated this the 14th day of October, 2010


                        JUDGMENT

Petitioner as well as the 5th respondent were

guarantors with respect to loan availed by the 4th

respondent from the first respondent Corporation.

Challenge in this Writ Petition is against the coercive

steps of recovery initiated at the behest of the first

respondent for realizing amounts due under the loan

account. Exts.P1 and P2 are notices issued under the

Kerala Revenue Recovery Act, against the petitioner for

realizing a sum of Rs.1,74,300/-.

2. According to the petitioner, the 4th respondent

is the person who is liable for payment of the amount due.

It is contended that the 4th respondent is still engaged in

business activities and he is having sufficient income to

repay the amounts. It is specifically contended that the

4th respondent is the ownership and possession of an

extent of 0.82 ares of property comprised in survey No.

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367 covered by Thandapper No. 4876 of Elappara Village.

It is further stated that, on getting information about this,

on the basis of Ext.P6 certificate obtained from the village

office, the petitioner submitted Ext.P3 to respondents 1 and

2 pointing out availability of immovable property in the

name of the borrower and requesting to take effective steps

against such property. Grievance of the petitioner is that

inspite of Ext.P3 representation submitted during July,

2010, no action was taken against the 4th respondent and

coercive steps are now being pursued against the

petitioner.

3. In a statement filed by the first respondent, it is

admitted that the respondents have received Ext.P3

representation. But it is stated that the revenue authorities

could not locate the 4th respondent to initiate any action

against him, since it is learned that the 4th respondent had

shifted his residence to somewhere in Madras. It is further

stated that eventhough steps were initiated against the 5th

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respondent, who is another guarantor, for realizing amounts

from his salary, it was reported that the 5th respondent had

already retired from service. It is pertinent to note that the

statement is silent about any specific action taken on the

basis of Ext.P3 to proceed against the property allegedly in

the ownership and possession of the defaulter, the 4th

respondent.

4. Under the above circumstances, I am of the

opinion that it is only just and proper for the respondents 1

and 2 to proceed against immovable property of the

borrower, which pointed out by the guarantor through

Ext.P3. It is made clear that the petitioner being a

guarantor is equally liable for payment of the arrears and

the liability is co-existence with that of the borrower.

However, in order to meet the ends of justice, the Writ

Petition is disposed of directing the respondents to take

effective steps to proceed against the property pointed out

as available in ownership and possession of the 4th

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respondent, at the earliest possible. It is made clear that

the movable property belonging to the petitioner can be

proceeded against only if the amounts is not receivable

through such steps taken.

5. In order to facilitate the respondents 1 and 2 to

proceed against the properties of the 4th respondent with

such steps as directed above, sale of immovable property if

any belonging to the petitioner and further steps of

recovery against his person and movables shall be kept in

abeyance for a period of two months. It is made clear that

the immovable property belonging to the petitioner can be

held under attachment and further action can be taken only

subject to outcome of the proceedings initiated as directed

above.

C.K. ABDUL REHIM
JUDGE
dnc