IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 5220 of 2009(V)
1. A.MOHAMMED MOIDEEN,
... Petitioner
2. S.SAINALABDEEN,
3. K.SASIDHARAN NAIR, MAYA BHAVAN,
Vs
1. THE KERALA STATE ROAD TRANSPORT
... Respondent
2. THE FINANCIAL ADVISOR AND CHIEF ACCOUNTS
3. THE DISTRICT TRANSPORT OFFICER,
4. THE SECRETARY, K.S.T. WORKER'S
5. THE ARBITRATOR AND THE ASSISTANT
For Petitioner :SRI.ANANDARAJAN.N
For Respondent :SRI.N.UNNIKRISHNAN,SC KSTW CO.OP SOCIET
The Hon'ble MR. Justice THOTTATHIL B.RADHAKRISHNAN
Dated :18/02/2009
O R D E R
THOTTATHIL B. RADHAKRISHNAN, J.
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W.P.(C).No.5220 of 2009-V
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Dated this the 18th day of February, 2009.
JUDGMENT
Petitioners 2 and 3 are guarantors to the first
petitioner for a transaction under which certain
facilities were availed from the fourth
respondent. There were agreements under Section
37 of the KCS Act. The petitioners allege that
respondents 1 to 3 have effected recoveries in
terms of Section 37, however that, the amounts
are not being paid to the fourth respondent and
that this has resulted in the failure to close
the transactions. Under such circumstances, this
Court has repeatedly held that the first
respondent is duty bound to pay to the creditor
society, in this case, the fourth respondent, all
amounts recovered from the debtors and the first
respondent is also to suffer the interest
component adding on to that amount as would be
WP(C)5220/2009 -: 2 :-
otherwise payable by the debtors.
For the foregoing reasons, this writ petition is
ordered directing that respondents 1 to 3 will
ensure that all amounts recovered from the
petitioners at the instructions of the fourth
respondent shall be released to the fourth
respondent with interest that would run on it as
claimed by the fourth respondent in terms of the
contract between the fourth respondent and the
petitioners. Such amounts shall be released
within a period of one month of the fourth
respondent intimating the second respondent the
amounts so due in terms of this judgment.
THOTTATHIL B. RADHAKRISHNAN,
JUDGE.
Sha/190209