{"id":45631,"date":"2009-06-24T00:00:00","date_gmt":"2009-06-23T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/agency-for-development-of-vs-noyal-femandez-on-24-june-2009"},"modified":"2014-11-16T23:06:19","modified_gmt":"2014-11-16T17:36:19","slug":"agency-for-development-of-vs-noyal-femandez-on-24-june-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/agency-for-development-of-vs-noyal-femandez-on-24-june-2009","title":{"rendered":"Agency For Development Of … vs Noyal Femandez on 24 June, 2009"},"content":{"rendered":"
Kerala High Court<\/div>\n
Agency For Development Of … vs Noyal Femandez on 24 June, 2009<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 18224 of 2008(T)\n\n\n1. AGENCY FOR DEVELOPMENT OF ACQUACULTURE\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. NOYAL FEMANDEZ, MANAGING PARTNER,\n                       ...       Respondent\n\n2. KERALA LOK AYUKTA REP. BY ITS REGISTRAR\n\n                For Petitioner  :SRI.C.A.JOY\n\n                For Respondent  :SRI.G.S.REGHUNATH\n\nThe Hon'ble MR. Justice V.GIRI\n\n Dated :24\/06\/2009\n\n O R D E R\n                       V.GIRI, J.\n         ----------------------------------------\n               W.P.(C).No.18244 of 2008\n         ----------------------------------------\n         Dated this the 24th day of June, 2009.\n\n\n                      JUDGMENT\n<\/pre>\n
        The 1st respondent herein availed a loan of<\/p>\n
Rs.5,42,920\/- for the purpose of cultivation in a land<\/p>\n
having an extent of 8 acres in Survey No.142 of<\/p>\n
Kalliyasheri Village, Kannur. The land had been<\/p>\n
mortgaged by the petitioner as a security for the<\/p>\n
repayment of the loan. The loan was to be repaid in<\/p>\n
instalments with 15% interest over a period of 5<\/p>\n
years.  The    petitioner    had    extended     financial<\/p>\n
assistance under the Kerala Fisheries Development<\/p>\n
Project for Prawn Culture (KFDPPC). The project<\/p>\n
period expired on 31.3.1998. The petitioner took<\/p>\n
steps to recall the loan given to different Shrimp<\/p>\n
Farmers.     Many of them represented to the<\/p>\n
Government for waiver of interest. By Ext.P1<\/p>\n
Government Order dated 28.10.2004, Government<\/p>\n
ordered waiver of penal interest upto 30.9.2004 and<\/p>\n
W.P.(C).No.18244 of 2008<\/p>\n
                         :: 2 ::\n<\/p>\n
reduced the interest rate from 15% to 8% per annum.<\/p>\n
Ext.P1 was again modified by Ext.P2 Government<\/p>\n
Order dated 15.6.2005 providing for full waiver of<\/p>\n
interest and penal interest up to 30.9.2004 and<\/p>\n
simple interest to be levied at 8% with effect from<\/p>\n
1.10.2004.\n<\/p>\n
         2. It is common case that the 1st respondent<\/p>\n
had repaid an amount of Rs.1,35,001\/- by 5.1.1996.<\/p>\n
Remaining amounts have not been paid.<\/p>\n
         3. In the meanwhile, the land belonging to<\/p>\n
the 1st respondent was acquired for the power project<\/p>\n
at Kannur. Compensation assessed under the Land<\/p>\n
Acquisition Act was then deposited in the reference<\/p>\n
court. It seems that the 1st respondent required the<\/p>\n
said amount to be remitted. It came about that the<\/p>\n
compensation amount came to be deposited in the<\/p>\n
Indian Overseas Bank, Thalassery Branch in the<\/p>\n
account of the Sub Judge, Thalassery as evidenced by<\/p>\n
Ext.P3. Thus, an amount of Rs.10,95,854\/- is lying in<\/p>\n
W.P.(C).No.18244 of 2008<\/p>\n
                           :: 3 ::\n<\/p>\n
fixed deposit at the Thalassery Branch of the Indian<\/p>\n
Overseas Bank.\n<\/p>\n
        4.     Learned counsel for the petitioner<\/p>\n
submits that the deposit effected in the bank is in<\/p>\n
favour of the petitioner and therefore, such deposit of<\/p>\n
the Land Acquisition Compensation Amount due to<\/p>\n
the petitioner will have to be treated as one in<\/p>\n
discharge of the liability which the 1st respondent had<\/p>\n
incurred with the petitioner.       The contention is<\/p>\n
therefore, that the benefit of Ext.P2 Government<\/p>\n
Order cannot be extended to the 1st respondent, as it<\/p>\n
contemplates a waiver of interest and penal interest<\/p>\n
only in relation to cases where the default in<\/p>\n
repayment had continued upto the date of Ext.P2<\/p>\n
order and not in cases where repayment had already<\/p>\n
been effected and the loan account closed on the<\/p>\n
date of Ext.P2.\n<\/p>\n
        5. The 1st respondent approached the Lok<\/p>\n
Ayukta in Complaint No.782\/07. Taking note of the<\/p>\n
W.P.(C).No.18244 of 2008<\/p>\n
                           :: 4 ::\n<\/p>\n
fact that Ext.P2 order would otherwise be applicable<\/p>\n
to the case of the complainant, the Lok Ayukta<\/p>\n
passed an order directing the compensation amount<\/p>\n
due to the complainant, lying in Fixed Deposit be<\/p>\n
returned to the complainant on maturity of the fixed<\/p>\n
deposit, after retaining the amount due to the<\/p>\n
petitioner herein in terms of Ext.R1(b) filed by the<\/p>\n
petitioner herein before the Lok Ayukta showing the<\/p>\n
calculation of the amount due from the 1st respondent<\/p>\n
in terms of Ext.P2 Government Order. This order of<\/p>\n
the Lok Ayukta has been challenged in this writ<\/p>\n
petition.\n<\/p>\n
         6. I heard Mr.C.A.Joy, learned counsel for the<\/p>\n
petitioner and Mr.G.S.Reghunath,learned counsel for<\/p>\n
the 1st respondent.\n<\/p>\n
         7. The applicability of Ext.P2 Government<\/p>\n
Order insofar as it offers waiver of interest and penal<\/p>\n
interest up to 30.9.2004 as such cannot be disputed<\/p>\n
by the petitioner, nor is the 1st respondent’s eligibility<\/p>\n
W.P.(C).No.18244 of 2008<\/p>\n
                          :: 5 ::\n<\/p>\n
to be covered by Ext.P2 Government Order liable to<\/p>\n
be disputed. The petitioner’s contention seems to be<\/p>\n
that the benefit of Ext.P2 Government Order cannot<\/p>\n
be extended to the 1st respondent, because amounts<\/p>\n
belonging to the 1st respondent by way of Land<\/p>\n
Acquisition compensation was deposited in the bank,<\/p>\n
in favour of the petitioner prior to the date of<\/p>\n
acquisition. In other words, the petitioner contends<\/p>\n
that there has been, in fact, a repayment of the loan<\/p>\n
availed by the 1st respondent, prior to the date of<\/p>\n
Ext.P2 and consequently Ext.P2 would not be<\/p>\n
applicable to the 1st respondent. I am not inclined to<\/p>\n
accept this contention. Firstly, the deposit of the land<\/p>\n
acquisition compensation in the bank as evidenced<\/p>\n
by Ext.P3, cannot be treated as one made specifically<\/p>\n
for the purpose of repayment of the loan account<\/p>\n
held by the 1st respondent with the petitioner. There<\/p>\n
is nothing in Ext.P3 to show that the amount was<\/p>\n
deposited under the account of the petitioner.<\/p>\n
W.P.(C).No.18244 of 2008<\/p>\n
                          :: 6 ::\n<\/p>\n<\/p>\n
         8. Even otherwise, I am unable to accept the<\/p>\n
case of the petitioner regarding the applicability of<\/p>\n
Ext.P2 Government Order to the 1st respondent. When<\/p>\n
Ext.P2 Government Order directed that there will be<\/p>\n
complete waiver of interest and penal interest for the<\/p>\n
period up to 1.10.2004, it will be wholly in-equitable<\/p>\n
not to apply the benefit of the Government Order to<\/p>\n
the   1st  respondent,    who     is  also  otherwise<\/p>\n
comprehended by the said Government Order,<\/p>\n
merely because the land acquisition compensation<\/p>\n
amount came into the hands of the 1st respondent<\/p>\n
during that period.   There is nothing on record to<\/p>\n
show that the 1st respondent had voluntarily<\/p>\n
deposited adequate amount with the petitioner with<\/p>\n
an intention to close the entire loan account, thereby<\/p>\n
resulting in a severance of the relationship between<\/p>\n
the petitioner and the 1st respondent on the date of<\/p>\n
Ext.P2.\n<\/p>\n
W.P.(C).No.18244 of 2008<\/p>\n
                          :: 7 ::\n<\/p>\n
         In these circumstances, I do not find any<\/p>\n
reason to disagree with the view taken by the Upa<\/p>\n
Lok Ayukta in this case. I find no grounds to interfere<\/p>\n
with the impugned order. Writ petition is accordingly<\/p>\n
dismissed. It is made clear that the petitioner is<\/p>\n
entitled to the amount shown as due under Ext.R1(d)<\/p>\n
with interest at the applicable rate on the said<\/p>\n
amount till today.\n<\/p>\n
                                        Sd\/-\n<\/p>\n
                                      (V.GIRI)
\n                                       JUDGE
\nsk\/<\/p>\n
                \/\/true copy\/\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court Agency For Development Of … vs Noyal Femandez on 24 June, 2009 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 18224 of 2008(T) 1. AGENCY FOR DEVELOPMENT OF ACQUACULTURE … Petitioner Vs 1. NOYAL FEMANDEZ, MANAGING PARTNER, … Respondent 2. KERALA LOK AYUKTA REP. BY ITS REGISTRAR For Petitioner :SRI.C.A.JOY For […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-45631","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nAgency For Development Of ... vs Noyal Femandez on 24 June, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/agency-for-development-of-vs-noyal-femandez-on-24-june-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Agency For Development Of ... vs Noyal Femandez on 24 June, 2009 - 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