Kerala High Court
Highness Investments And Financiers vs Kerala State Financial Enterprises Ltd on 28 May, 2024
Author: Devan Ramachandran
Bench: Devan Ramachandran
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
TUESDAY, THE 28TH DAY OF MAY 2024 / 7TH JYAISHTA, 1946
WP(C) NO. 18926 OF 2024
PETITIONERS:
1 HIGHNESS INVESTMENTS AND FINANCIERS
JASMINE VILE, T.C.15/2038, WOMENS COLLEGE LANE,
VAZHUTHAKKAD, THIRUVANANTHAPURAM, PIN - 695 014
REPRESENTED BY IT'S MANAGING PARTNER C.R.SHAJI,
CHERUPARAMBIL HOUSE, NADUVATHUNAGAR P.O., CHERTHALA, PIN
- 688559
2 SREE PADMANABHA TRADING COMPANY
JASMINE VILE, T.C.15/2038, WOMENS COLLEGE LANE,
VAZHUTHAKKAD, THIRUVANANTHAPURAM, PIN - 695014
REPRESENTED BY IT'S MANAGING PARTNER, C.R.SHAJI,
CHERUPARAMBIL HOUSE, NADUVATHUNAGAR P.O., CHERTHALA, PIN
- 688559
BY ADVS.
BABU CHERUKARA
ALBERT ABEY V.S.
RESPONDENTS:
1 KERALA STATE FINANCIAL ENTERPRISES LTD.
HEAD OFFICE, BHADRATHA, CHEMBUKAVU, MUSEUM ROAD, TRISSUR,
REPRESENTED BY THE MANAGING DIRECTOR, PIN - 680001
2 THE MANAGING DIRECTOR
KERALA STATE FINANCIAL ENTERPRISES LTD, HEAD OFFICE,
BHADRATHA, CHEMBUKAVU, MUSEUM ROAD, TRISSUR, PIN - 680001
3 BRANCH MANAGER
KERALA STATE FINANCIAL ENTERPRISES LTD.,
THIRUVANANTHAPURAM MAIN BRANCH, HOUSING BOARD BUILDING,
SANTHI NAGAR, THIRUVANANTHAPURAM, PIN - 695001
4 BRANCH MANAGER
KERALA STATE FINANCIAL ENTERPRISES LTD., VAZHUTHACAUD
BRANCH, CENTRE PLAZA BUILDING, IIND FLOOR, VAZHUTHACAUD
P.O., THIRUVANANTHAPURAM, PIN - 695014
5 BRANCH MANAGER
KERALA STATE FINANCIAL ENTERPRISES LTD., THAMPANOOR
EVENING BRANCH, RAMA PLAZA BUILDING, 1ST FLOOR, S.S.KOVIL
WP(C) NO. 18926 OF 2024
2
ROAD, THAMPANOOR P.O., THIRUVANANTHAPURAM, PIN - 695001
6 BRANCH MANAGER
KERALA STATE FINANCIAL ENTERPRISES LTD., PETTA BRANCH,
SENTINEL BUILDING, PATTOOR JUNCTION, VANCHIYOOR P.O.,
THIRUVANANTHAPURAM, PIN - 695035
7 BRANCH MANAGER
KERALA STATE FINANCIAL ENTERPRISES LTD., KOLLAM MAIN
BRANCH, K S F E BUILDINGS, P.B. NO.3, CHINNAKKADA,
KOLLAM, PIN - 691001
8 BRANCH MANAGER
KERALA STATE FINANCIAL ENTERPRISES LTD. POOJAPPURA
BRANCH, 1ST FLOOR, LAKSMI CHAMBERS, OPP.PAREEKSHA BHAVAN,
POOJAPURA, THIRUVANANTHAPURAM, PIN - 695012
9 BRANCH MANAGER
KERALA STATE FINANCIAL ENTERPRISES LTD., SASTHAMANGALAM
BRANCH 2ND FLOOR, SOWPARNIKA TOWER, P.O. SASATHAMANGALAM,
THIRUVANANTHAPURAM, PIN - 695010
10 BRANCH MANAGER
KERALA STATE FINANCIAL ENTERPRISES LTD., STATUE EVENING
BRANCH, SILVER JUBILEE BUILDINGS, CHIRAKKULAM ROAD,
PALAYAM, THIRUVANANTHAPURAM, PIN - 695001
11 BRANCH MANAGER
KERALA STATE FINANCIAL ENTERPRISES LTD. INCHAKKAL BRANCH,
P.O. INCHAKKAL, VALLAKADAVU, THIRUVANANTHAPURAM, PIN -
695008
12 BRANCH MANAGER
KERALA STATE FINANCIAL ENTERPRISES LTD., ERNAKULAM MAIN
BRANCH, PADMA JUNCTION, KOCHI, PIN - 682035
SRI SALIL NARAYANAN K A -SC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
28.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 18926 OF 2024
3
JUDGMENT
The petitioners - which are both entities
engaged in financial businesses, have hardly
anything in common, except that their Managing
Director is the same person by name Sri.C.R.Shaji
- has approached this Court, seeking a direction
to the 1st respondent - Kerala State Financial
Enterprises (KSFE) that they release to them the
amounts covered by "Chittys" which they have
subscribed, without any avoidable delay.
2. Sri.Babu Cherukara - learned counsel
appearing for the petitioners, conceded that both
his clients have committed default with respect
to "Chittys" in the past and that some of them
are in overdues. He also admitted that they had
approached this Court earlier, to obtain
judgments, but which have not been fully complied
WP(C) NO. 18926 OF 2024
with. He nevertheless prayed that the KSFE be
directed to release to his clients the amounts
covered by the "Chittys" in question, for which
fresh security will be offered; with a corollary
plea that Revenue Recovery action against them
with respect to the earlier default, be ordered
to be deferred until such time.
3. Sri.Salil Narayanan - learned Standing
Counsel for the KSFE, however, vehemently opposed
the afore request of Sri.Babu Cherukara
explaining that the real person behind is the
aforementioned Sri.C.R.Shaji, who has, both in
his name and in the name of the concerns claim to
be representing, have committed default with
respect to "chittys" in the past, which are still
overdue. He submitted that, therefore, unless all
those chits transactions are fully paid off and
WP(C) NO. 18926 OF 2024
fresh security offered for the new ones, the KSFE
cannot help.
4. I have examined the afore rival positions
from the touchstone on the materials and
documents on record.
5. As is conceded by both sides, the
petitioners had earlier approached this Court to
obtain several judgments, including Exts.P13, P14
and P16. However, it is conceded that most of the
said judgments have not been fully complied with;
but the petitioners still seek that the amounts
under new "Chits" be ordered to be released to
them by the KSFE.
6. The KSFE is a financial concern, whose
decisions are taken by its controlling
authorities, based on several relevant and
germane criteria, into which this Court cannot
WP(C) NO. 18926 OF 2024
enter into, or speak affirmatively, while acting
under Article 226 of the Constitution of India.
7. As seen above, Sri.Salil Narayanan -
learned Standing Counsel representing KSFE, takes
the firm position that new "Chits" can be allowed
in favour of the petitioners, only if they pay
off the original ones and clear the outstanding
at the earliest; and offering necessary security
as his clients may deem fit.
8. As I have already said above, since these
are issues in the policy realm of the KSFE, this
Court can only go by the afore suggestion of
Sri.Salil Narayanan; and in fact, Sri.Babu
Cherukara also acceded to it.
9. In the afore circumstances, I allow this
Writ Petition to the limited extent of permitting
the petitioners to approach the KSFE, showing the
WP(C) NO. 18926 OF 2024
manner in which they will pay off the entire
liability in the past, as also offering
additional security for the new "Chits", in which
event, the same will be considered by its
competent Authority, after affording them
necessary opportunity of being heard; thus
culminating in an appropriate order and necessary
action thereon, as expeditiously as is possible.
Needless to say, this Court has not entered
into the merits of the contentions of the
petitioners regarding the revenue recovery
actions with respect to the earlier transactions;
but if they are to invoke the afore reserved
liberty within a period of one week from the date
of receipt of a copy of this Judgment; then,
until such time as the afore exercise is
completed and the resultant order communicated to
WP(C) NO. 18926 OF 2024
them, all coercive recovery action against them
will stand deferred, but can be taken thereafter
forward, depending upon the decision to be
arrived at by the KSFE in terms of the afore
directions.
Sd/-
DEVAN RAMACHANDRAN
JUDGE
SAS
WP(C) NO. 18926 OF 2024
APPENDIX OF WP(C) 18926/2024
PETITIONER'S EXHIBITS:
Exhibit P1 TRUE COPY OF THE MONEY LENDING LICENCE NO.
32010547138 IN THE NAME OF THE 1ST PETITIONER
ESTABLISHMENT.
Exhibit P2 TRUE COPY OF THE PAN CARD IN THE NAME OF THE
1ST PETITIONER ESTABLISHMENT.
Exhibit P3 TRUE COPY OF THE PARTNERSHIP REGISTRATION
CERTIFICATE OF THE 1ST PETITIONER
ESTABLISHMENT.
Exhibit P4 TRUE COPY OF THE PARTNERSHIP REGISTRATION
CERTIFICATE OF THE 2ND PETITIONER
ESTABLISHMENT.
Exhibit P5 TRUE COPY OF THE PAN CARD FOR THE 2ND
PETITIONER ESTABLISHMENT.
Exhibit P6 TRUE COPY OF THE INCOME TAX RETURN
ACKNOWLEDGEMENT FOR THE ASSESSMENT YEAR 2023-
24 OF THE 1ST PETITIONER ESTABLISHMENT
HIGHNESS INVESTMENTS AND FINANCIERS FILED ON
17-12-2023.
Exhibit P7 TRUE COPY OF THE INCOME TAX RETURN OF THE 2ND
PETITIONER ESTABLISHMENT DATED 15-11-2023
Exhibit P8 TRUE COPY OF THE JUDGMENT IN W.P.(C) NO. 25170
OF 2019 OF THIS HON'BLE COURT DATED 4-2-2020.
Exhibit P9 TRUE COPY OF THE JUDGMENT IN W.P.(C) NO. 16139
OF 2020 OF THIS HON'BLE COURT DATED 7-8-2020.
Exhibit P10 TRUE COPY OF THE INTIMATION DATED 11-01-2021
ISSUED BY THE MANAGING DIRECTOR OF THE
RESPONDENT.
Exhibit P11 TRUE COPY OF THE JUDGMENT IN W.P.(C) NO. 3615
OF 2021 OF THIS HON'BLE COURT DATED 18-2-2021.
Exhibit P12 TRUE COPY OF THE ORDER DATED 12-3-2021 ISSUED
BY THE MANAGING DIRECTOR OF K.S.F.E. LTD.
Exhibit P13 TRUE COPY OF THE JUDGMENT IN W.P.(C) NO.7338
OF 2021 OF THIS HON'BLE COURT DATED 22-3-2021.
Exhibit P14 TRUE COPY OF THE JUDGMENT IN W.P.(C) NO. 25280
OF 2022 OF THIS HON'BLE COURT DATED 29-9-2022.
WP(C) NO. 18926 OF 2024
Exhibit P15 TRUE COPY OF THE REPRESENTATION DATED 28-1-
2023 BY THE MANAGING PARTNER OF 1ST PETITIONER
TO THE 2ND RESPONDENT.
Exhibit P16 TRUE COPY OF THE JUDGMENT IN W.P.(C) NO. 5235
OF 2023 OF THIS HON'BLE COURT DATED 18-09-
2023.
Exhibit P17 TRUE COPY OF THE JUDGMENT IN W.A. NO. 84/2024
OF THIS HON'BLE COURT DATED 18-1-2024.
Exhibit P18 TRUE COPY OF THE REPLY ISSUED BY THE 2ND
RESPONDENT DATED 23-2-2024.
Exhibit P19 TRUE COPY OF THE INTIMATION BEING AN ORDER
DATED 22-02-2024 ISSUED BY THE 2ND RESPONDENT.
Exhibit P20 TRUE COPY OF THE CHITTY REMITTANCE DETAILS
STATEMENT ISSUED FROM ERNAKULAM MAIN BRANCH OF
K.S.F.E. LTD. DATED 10-3-2022.
Exhibit P21 TRUE COPY OF THE CHITTY REMITTANCE DETAILS
STATEMENT ISSUED FROM SASTHAMANGALAM BRANCH OF
K.S.F.E. LTD. DATED 10-3-2022.
Exhibit P22 TRUE COPY OF THE CHITTY REMITTANCE DETAILS
STATEMENT ISSUED FROM CHALA , TRIVANDRUM
BRANCH OF K.S.F.E. LTD. DATED 11-3-2022.
Exhibit P23 TRUE COPY OF THE CHITTY REMITTANCE DETAILS
STATEMENT ISSUED FROM CHERTHALA II BRANCH OF
K.S.F.E. LTD. DATED 11-3-2022.
Exhibit P24 TRUE COPY OF THE CHITTY REMITTANCE DETAILS
STATEMENT ISSUED FROM RANNI MAIN BRANCH OF
K.S.F.E. LTD. DATED 11-3-2022.
Exhibit P25 TRUE COPY OF THE CHITTY REMITTANCE DETAILS
STATEMENT ISSUED FROM VAZHUTHAKKAD BRANCH OF
K.S.F.E. LTD. DATED 14-3-2022.
Exhibit P26 TRUE COPY OF THE CHITTY REMITTANCE DETAILS
STATEMENT ISSUED FROM POOJAPPURA BRANCH OF
K.S.F.E. LTD. DATED 16-3-2022.
Exhibit P27 TRUE COPY OF THE JUDGMENT DATED 11-4-2024 OF
THIS HON'BLE COURT IN W.P.(C) NO.11901/2024.
