Anwar. M. A vs Managing Director
2024 Latest Caselaw 10866 Ker

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

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,

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

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