High Court Kerala High Court

Fathima M.A. vs The Kerala State Financial … on 4 April, 2008

Kerala High Court
Fathima M.A. vs The Kerala State Financial … on 4 April, 2008
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WA No. 753 of 2008()


1. FATHIMA M.A., W/O.K.Y.RASHEED,
                      ...  Petitioner

                        Vs



1. THE KERALA STATE FINANCIAL CORPORATION,
                       ...       Respondent

2. THE KERALA STATE FINANCIAL CORPORATION,

3. THE DEPUTY TAHSILDAR (RR)

                For Petitioner  :SRI.B.KRISHNA MANI

                For Respondent  : No Appearance

The Hon'ble the Chief Justice MR.H.L.DATTU
The Hon'ble MR. Justice K.M.JOSEPH

 Dated :04/04/2008

 O R D E R
                      H.L. DATTU, CJ. & K. M. JOSEPH, J.
                       --------------------------------------------------
                              W. A. NO. 753 OF 2008
                      ---------------------------------------------------
                          Dated this the 4th April, 2008

                                       JUDGMENT

H.L. DATTU, C.J:

Appellant/Petitioner had availed a loan of Rs.6 Lakhs some time in the year

1997 for the purpose of starting Bakery business. She has committed default in

payment of the amounts due to the respondent, Financial Corporation. The

respondents have initiated proceedings by issuing revenue recovery notices to

recover the amounts due to them from the petitioner. Aggrieved by this action of the

respondents, petitioner was before this court in W.P.(C). No.8537/08 seeking the

following reliefs:

“(a) Issue a writ of mandamus or any other appropriate

writ, order or direction directing the respondents not to proceed

further with revenue recovery steps including sale of the property

specified in Ext.P3 before exploring the possibility of One Time

Settlement in the matter of petitioner’s liability due to them with

notice and opportunity of hearing to her.

(b) Grant such other reliefs that this Honourable Court

may deem fit and proper in the circumstances of the case.”

2. The learned Single Judge, taking a very sympathetic view in the matter,

has directed the petitioner to pay 1/4th of the amounts due to the respondent,

Financial corporation on or before 31.3.2008 and the balance amount to be paid in

equal monthly instalments.

3. Even a most beneficial and harmless order passed by the learned Single

Judge has become the subject matter of this Writ Appeal. Once again, the same

contentions canvassed in the Writ Petition, are reiterated before us. The only

W.A.NO.753/08 2

contention that the petitioner canvasses before this Court is that she has some

financial difficulties and she is not in a position to discharge the liability as directed

by the learned Single Judge. Time and again, the Apex Court has stated that the

administrative decisions taken by the Financial Corporations shall not be lightly

interfered with by this Court, unless those orders are either unfair, unjust or arbitrary.

In U.P. Financial Corporation v. M/s. Gem Cap (India) Pvt. Ltd and Others (AIR 1993

SC 1435). the Apex Court has held as follows:

“In a matter between the Corporation and its debtor, a writ

court has no say except in two situations: (1) there is a statutory

violation on the part of the Corporation, or (2) where the

Corporation acts unfairly i.e. unreasonably. Acting unfairly or

unreasonably does not mean that the High Court exercising its

jurisdiction under Art. 226 of the Constitution can sit as an

Appellate Authority over the acts and deeds of the Corporation and

seek to correct them. That is not the function of the High Court

under Article 226. Doctrine of fairness, evolved in administrative

law was not supposed to convert the writ courts into appellate

authorities over administrative authorities. The constraints – self-

imposed undoubtedly – of writ jurisdiction still remain. Ignoring

them would lead to confusion and uncertainty. The jurisdiction

may become rudderless.”

4. In the instant case, it is not in dispute, nor can it be disputed by the

petitioner that she has defaulted in paying the amounts due to the respondent,

Financial Corporation. In order to recover the amounts due to it, the Financial

Corporation has initiated proceedings by resorting to the provisions of the Revenue

Recovery Act by issuing demand notice. The notice so issued by the Corporation

cannot be said that it is in violation of any of the statutory provisions of the

Corporation. Nor, can it be said that the Corporation has acted unfairly,

unreasonably and unjustifiably. In view of that, in our opinion, firstly the learned

W.A.NO.753/08 3

Single Judge ought not have interfered with Ext.P3 notice issued by the Financial

Corporation. However, in exercise of the extraordinary and discretionary jurisdiction,

and taking a very sympathetic view in the matter, and also taking into consideration

the illness and the financial constraints pleaded by the petitioner, the learned single

Judge has given some instalment facilities to the petitioner to pay the amounts due

to the respondent Corporation.

5. Having obtained such an order, the petitioner ought to have been

satisfied. Instead of that, the petitioner has filed yet another Appeal questioning an

harmless order passed by the learned Single Judge. We do not intend to

encourage this frivolous appeals. Therefore, interference with the orders passed by

the learned single Judge is not called for. Lastly, the Affidavit filed by the petitioner

stating that she will sell the mortgaged property, cannot be acceded to by us.

Accordingly, the Writ Appeal requires to be rejected and it is rejected.

Ordered accordingly.





                                                               H.L. DATTU,
                                                             CHIEF JUSTICE



                                                                K.M. JOSEPH,
kbk.                                                                 JUDGE