IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C) No. 5848 of 2007(U)
1. N.ANANDAVALLY, PROPX: M/S.ATHULYA
... Petitioner
Vs
1. PRINCIPAL SECRETARY TO GOVERNMENT,
... Respondent
2. CHIEF MANAGER, KERALA FINANCIAL
3. MANAGING DIRECTOR,
For Petitioner :SRI.P.N.MOHANAN
For Respondent : No Appearance
The Hon'ble MR. Justice THOTTATHIL B.RADHAKRISHNAN
Dated :23/02/2007
O R D E R
THOTTATHIL B.RADHAKRISHNAN, J
-------------------------------------------
W.P(C).No.5848 OF 2007
-------------------------------------------
Dated this the 23rd day of February, 2007
JUDGMENT
This writ petition is field against the action taken under the
State Financial Corporations Act by the Kerala Financial
Corporation taking over the industrial unit. Going by the
pleadings, the saw mill unit was working. It is also submitted on
behalf of the petitioner by the learned counsel that because the
take over was without prior notice, the timber, which belong to
certain other persons, are also in the premises and could not be
removed. This will only show that the industry was in a running
condition.
2. As against the then outstandings of Rs.84,00,000/-, KFC
was ready to set out an amount of Rs.25,00,000/- plus certain
portion of interest. Thereafter, the KFC granted an enlargement
of time to avail the benefit of One Time settlement. Still nothing
was done, no payment was made. Accordingly, the present
action was taken. It is pointed out by the learned counsel for the
WPC.5848/07
Page numbers
petitioner that the Finance Minister and the State Government
had, acting on a representation of the petitioner, directed the
KFC to adjourn distress action by six months and thereby grant
six months’ time to utilise the OTS scheme. It is stated that the
Principal Secretary to Government, Finance Department had
issued a communication in that regard.
3. The KFC is a statutory body under the SFCs Act. The SFCs
Act does not give any superior power to State Government or the
Minister or the Secretary to Government to issue any orders of
stay for interfering with recovery process of a Finance
Corporation under the SFCs Act. This is because, KFC is a
statutory body and is entitled to function under the SFCs Act.
Under such circumstances, I do not find any ground to assume
that there was any interdictory order from the State
Government, the Finance Minister or the Secretary to
Government to KFC on any application to withhold the take over
proceedings.
WPC.5848/07
Page numbers
4. Learned counsel for the KFC submits that there was a mob
attack at the office of the KFC and an attempt to burn off the
official vehicle of KFC at the time when the KFC officials visited
the place for taking over and that it was on account of police
intervention that the take over was possible. Whatever that be,
it is not a matter that needs to gain attention of this Court.
5. Having heard counsel for parties, I do not find any ground
to interfere with the impugned proceedings, particularly when as
against the present outstandings, which is about Rs.85,00,000/-,
the petitioner is not willing even to deposit a portion of the same,
say Rs.25,00,000/- which was mentioned during the hearing by
me, at least to permit the petitioner to pay off the outstandings
within a breathing time.
The writ petition fails the same is accordingly dismissed.
THOTTATHIL B.RADHAKRISHNAN
Judge
kkb.