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.
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WP(C) No. 4050 of 2007 F
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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
