Kerala High Court
Anwar. M. A vs Managing Director on 12 April, 2024
Author: Devan Ramachandran
Bench: Devan Ramachandran
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
FRIDAY, THE 12TH DAY OF APRIL 2024 / 23RD CHAITHRA, 1946
WP(C) NO. 14637 OF 2024
PETITIONERS:
1 ANWAR. M. A
AGED 52 YEARS
S/O ABOOBACKER, MUNDETH HOUSE EDAVOOR. P.O.,
KOOVAPPADY, ERNAKULAM DIST, PIN - 683544
2 M.A.RAFEEQ
AGED 55 YEARS
S/O ABOOBACKER, MUNDETH HOUSE EDAVOOR. P.O.,
KOOVAPPADY, ERNAKULAM DIST., PIN - 683544
3 RAJEENA RAFEEQ
AGED 52 YEARS
W/O RAFEEQ, MUNDETH HOUSE EDAVOOR. P.O., KOOVAPPADY,
ERNAKULAM DIST., PIN - 683544
4 HASEENA ANWAR
AGED 48 YEARS
W/O ANWAR, MUNDETH HOUSE EDAVOOR. P.O.,KOOVAPPADY.
ERNAKULAM DIST., PIN - 683544
5 SHAHIDA. M.A
AGED 50 YEARS
D/O ABOOBACKER, MUNDETH HOUSE EDAVOOR. P.O.,
KOOVAPPADY, ERNAKULAM DIST., PIN - 684544
BY ADV N.S.REHNA
RESPONDENTS:
1 MANAGING DIRECTOR
KERALA FINANCIAL CORPORATION. SARB, 5TH FLOOR,
FINANCE TOWER KALOOR, KOCHI, PIN - 682017
2 KERALA FINANCIAL CORPORATION
REPRESENTED BY ITS MANAGING DIRECTOR SARB, 5TH FLOOR,
FINANCE TOWER, KALOOR, KOCHI, PIN - 682017
3 THE MANAGER
RECOVERY SECTION , KERALA FINANCIAL CORPORATION, SARB,
5TH FLOOR, FINANCE TOWER, KALOOR, KOCHI, PIN - 682017
4 THE DEPUTY THAHASILDAR
REVENUE RECOVERY SECTION, KERALA FINANCIAL
CORPORATION, SARB, 5TH FLOOR, FINANCE TOWER, KALOOR,
KOCHI, PIN - 682017
BY ADVS.
ADV. VENUGOPAL M.R.
WP(C) NO. 14637 OF 2024 2
DHANYA P.ASHOKAN (SR.)(K/001671/2000)
S. MUHAMMAD ALIKHAN(K/000644/2020)
ATHULYA V.R.(K/000850/2021)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
12.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 14637 OF 2024 3
JUDGMENT
The petitioners seek that the respondent - Kerala Financial Corporation (KFC) be directed to offer them a One Time Settlement (OTS) for the purpose of settling their eight loan accounts which, as of now have swelled to a total figure of nearly Rs.100 Crores. They allege that even though they have approached the competent Authorities for the afore purpose, they were not given an option of even making a proper application; and therefore, that the 1st among them have preferred Ext.P2 letter in writing, but which has also not been adverted to, nor has they obtain any reply to Ext.P3 subsequent request. They thus pray that the KFC be directed to afford them the benefit of OTS forthwith, so that they can then settle the loan liabilities without any impediment.
2. Smt.Dhanya P.Ashokan - learned Senior Counsel, instructed by Smt.Athulya V.R. - learned Standing Counsel for the KFC, however, submitted that, if the petitioners require any benefit as prayed for, then they must make a proper application, remitting 10% of the total outstanding, which is the norm as regards the settlements relating to her client. She submitted that if the petitioners do so, then certainly the same will be considered in terms of law and that they will also be given necessary opportunities of honouring the same, if they are found to be WP(C) NO. 14637 OF 2024 4 sincere in their approach. She, however, added that, as per the subsisting OTS Scheme, the time would end by 30.04.2024 and that the petitioners must act before that date.
3. Smt.N.S.Rehna - learned counsel for the petitioners at this time intervened to say that her clients have been able to identify purchasers for properties, which are collaterally secured with the KFC for loans; and therefore, that they may also be given liberty to seek that they be permitted a private sale of the same, so as to obtain the resources to pay off the entire loan liability.
4. Smt.Dhanya P.Ashokan - learned Senior Counsel, submitted that any such request will also have to be made by the petitioners in their OTS proposal as mentioned by her earlier.
Taking note of the afore submissions, I dispose of this writ petition with the following directions:
(a) The petitioners are permitted to make appropriate application/s for settlement of the loan accounts, in such manner as they deem apposite.
(b) If the afore is done by the petitioners within the time afore mentioned by Smt.Dhanya P.Ashokan - learned Senior Counsel, and if it is accompanied by all necessary documents and payment as requisite, WP(C) NO. 14637 OF 2024 5 then the competent Authority of the respondents will consider the same and issue appropriate orders thereon, after affording the petitioners an opportunity of being heard.
(c) I clarify that I have not dealt with the manner in which the petitioners are entitled to seek OTS settlement of the loan accounts and if they choose to do so independently and one after the other, by either sale of the properties or in such other manner, they are at liberty to propose this in their representation, which will then be taken note of by the competent Authorities while issuing orders as directed above.
Sd/-
DEVAN RAMACHANDRAN JUDGE MC/16.4 WP(C) NO. 14637 OF 2024 6 APPENDIX OF WP(C) 14637/2024 PETITIONER EXHIBITS Exhibit -P1 TRUE COPY OF JUDGEMENT IN WP(C) 24925/2023 OF THE HON'BLE HIGH COURT DATED 03/08/2023 Exhibit -P2 TRUE COPY OF REQUEST BEFORE THE 1ST RESPONDENT DATED 20/12/2023 Exhibit -P3 TRUE COPY OF REQUEST DATED 05/04/2024 BEFORE THE 1ST RESPONDENT