IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 27261 of 2006(U)
1. T.J. IVANHOE, (LOAN NO.TS XII 2/ALPY)
... Petitioner
Vs
1. THE KERALA STATE DEVELOPMENT
... Respondent
2. THE MANAGING DIRECTOR,
3. STATE OF KERALA, REPRESENTED BY ITS
4. THE TAHSILDAR (R.R.),
5. THE VILLAGE OFFICER,
For Petitioner :SRI.G.HARIHARAN
For Respondent :GOVERNMENT PLEADER
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
Dated :24/10/2008
O R D E R
C.N. RAMACHANDRAN NAIR, J.
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W.P.C. NO. 27261 OF 2006
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Dated this the 24th day of October, 2008
JUDGMENT
Writ Petition is filed challenging recovery proceedings for
recovery of balance arrears of loan due from the petitioner to the first
respondent. The case of the petitioner is that loan taken was for
purchase of a car and even though car was seized by the Corporation in
2000 for default, it was sold only in 2004. The inordinate delay in sale
of the car would have led to loss inasmuch as corrosion and other
damage to the car would lead to reduction in value. The Corporatoion
is accountable for the loss on account of delay in sale of the car.
However, counsel for the first respondent submitted that a surety for
the loan filed a civil suit and obtained interim orders from the Civil
Court against sale of car. It is only after the civil court lifted it’s orders
in 2004 that the Corporation could sell the car. If the Corporation was
prevented from selling the car on account of untenable litigation filed
before the civl court, then Corporation cannot be blamed for the loss
caused on account of delay in sale of car. If the guarantor is the person
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who filed the civil suit and delayed the sale of car, then I feel recovery
should be continued against him also. In any case, having regard to the
fact that petitioner is a member of Backward community and the
business was a total fiasco leading to loss and destruction of car, I
direct the first respondent to permit settlement by waiving complete
penal and default interest and allow the petitioner to settle liability by
remittance of balance arrears due after adjusting payments and
recoveries, with six per cent interest per annum, provided the balance
arrears with such rate of interest are paid by the petitioner before
15.12.2008. However, if payment is not made as above, then recovery
should be made against the petitioner and guarantors who filed civil
suit with full rate of interest. The concerned Branch Manager will,
immediately on production of a copy of this judgment, give a
sta;tement of liability to the petitioner for settlement as above. If
petitioner is entitled to OTS benefits, it is open to the petitioner to avail
it in the place of this relief granted herein.
W.P. is disposed of as above.
(C.N. RAMACHANDRAN NAIR)
Judge
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