K.J. Antony vs Managing Director on 9 April, 2007

Kerala High Court
K.J. Antony vs Managing Director on 9 April, 2007
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C) No. 4050 of 2007(F)


1. K.J. ANTONY, S/O. JACOB,
                      ...  Petitioner
2. SAJI JOSE, S/O. JOSE,
3. A.M. VARGHESE, S/O. MATHEW,
4. S.S. JAYA RAJ, S/O. CHITHARANNYA,
5. CIJU P.SHAKKAR, AGED 35 YEARS,
6. P.J. JAMES, S/O. JOSEPH,
7. MOLLY GEORGE, W/O. GEORGE,

                        Vs



1. MANAGING DIRECTOR,
                       ...       Respondent

2. REGISTRAR (SECRETARY TO INDUSTRIES

3. JOINT REGISTRAR

4. INDUSTRIES DEVELOPMENT COMMISSIONERATE,

                For Petitioner  :SRI.T.V.GEORGE

                For Respondent  :SRI.K.K.CHANDRAN PILLAI

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR

 Dated :09/04/2007

 O R D E R
                     C.N.RAMACHANDRAN NAIR, J.

                     -----------------------------------

                        WP(C) No. 4050 of 2007 F

                      ---------------------------------

                 Dated, this the 9th day of April, 2007


                               J U D G M E N T

Heard the learned counsel for the petitioners and the learned

Standing Counsel appearing for 1st respondent.

2. Petitioners were allotted industrial sheds, the payment for

which was to be made in 120 monthly instalments. The sale was

on hire purchase basis and on account of chronic default, Society

has initiated recovery proceedings, against which this WP(C) is

filed. The learned counsel for the petitioners contended that

payment could not be made on account of financial difficulties, as

industries were not run on profit. The scheme was introduced in

1984 and by 1994 payment should have been made. Even though,

cost of the industrial sheds have to be repaid without interest,

petitioners have become liable for payment of interest only because

they committed default. The learned counsel for the 1st respondent

submitted that rate of interest charged is only 2% above the

borrowing rate and funds are borrowed by the 1st respondent. It is

admitted that the funds were mainly raised by 1st respondent

through borrowing from State Co-operative Bank and if arrears are

not recovered, 1st respondent will go bankrupt. However, since

W.P.(C)No. 4050/2007

-Page numbers-

petitioners were entitled to repay the loans without interest but for

the default I feel rate of interest can be reduced to a reasonable

level, if payments are made within a reasonable period. In the

circumstance, this WP(C) is disposed of granting six equal monthly

installments to the petitioners to clear the balance arrears with 9%

simple interest from the date of default till date of payment. The

first installment of which will be paid on or before 10th May 2007

and balance on or before 10th day of five succeeding months.

Administrator of 1st respondent will give a statement of liability to

each of the petitioners within a week from the date of production of

a copy of this judgment for clearing liability as above. However, if

petitioners commit default in payment of any installment, the

installment facility and reduction of interest granted will stand

automatically vacated on first default and it will be open to the 1st

respondent to resume possession of the industrial sheds and

proceed for recovery by sale of the same.

This WP(C) is disposed of as above.

(C.N.RAMACHANDRAN NAIR, JUDGE)

jg

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