IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 19345 of 2008(C)
1. E.K.SIVADASAN, AGED 51 YEARS,
... Petitioner
Vs
1. THE MANAGER,
... Respondent
For Petitioner :SRI.V.S.CHANDRASEKHARAN
For Respondent : No Appearance
The Hon'ble MR. Justice V.GIRI
Dated :15/10/2008
O R D E R
V.GIRI, J
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W.P.(C).19345/2008
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Dated this the 15th day of October, 2008
JUDGMENT
Petitioner claims to be the Chairman and one of
the share holders of Aswas Hospital in Thrissur, which
is a Company incorporated under the Companies Act,
1956. It is stated that the total share capital of the
Company is Rs.2,00,00,000/-. Company owned 52.5
cents of land with a building of 33,000 Sq. feet. The
said property was given as security by the Company to
the KFC to avail a loan facility. Another property
having an extent of 5 Acres of land with 3000 Sq.feet
marbled house was also given as security to the
respondent for availing a loan of Rs.75,00,000/- from
the KFC. Repayment of the loan was defaulted and
KFC took possession of 52.5 cents of land and the
building belonging to the Company, under Section 29
of the State Financial Corporation Act.
2. The grievance of the petitioner is regarding the
steps taken by the KFC in proceeding against the
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personal properties. He has filed Ext.P3 representation
to the KFC to lift the attachment. But that has not been
considered. Hence the writ petition.
3. Counter affidavit has been filed by the KFC inter
alia pointing out that the balance outstanding in the
loan account as on 1.7.2008 is Rs.1,59,02,002/- and the
petitioner has executed a personal guarantee for the
repayment of the loan availed by the Company.
4. Having heard learned counsel on both sides, I am
of the view that in the nature of the security offered by
the petitioner, it would be appropriate that the KFC
proceeds against the mortgaged property in the first
instance. Personal properties of the petitioner are under
attachment but further proceedings may be deferred till
the KFC makes a genuine effort to recover its dues by
proceeding against the property offered as security.
5. In the result, writ petition is disposed of directing
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the respondents to keep in abeyance further coercive
proceedings against the personal properties of the
petitioner for a period of six months from today. In the
meanwhile, KFC shall take all efforts possible to
recover its dues from the properties mortgaged by the
defaulter. It is made clear that if the mortgaged
properties are either found to be inadequate to satisfy
the debt or the KFC otherwise finds it impossible to
recover its dues from the mortgaged properties, they
shall be entitled to issue notice to the petitioner stating
those reasons and then proceed against his properties,
in accordance with law.
V.GIRI,
Judge
mrcs