Kerala High Court
Arathy S. Nair vs The Kerala State Financial Enterprises ... on 17 October, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:77877
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
THURSDAY, THE 17TH DAY OF OCTOBER 2024 / 25TH ASWINA, 1946
WP(C) NO. 36310 OF 2024
PETITIONERS:
1 ARATHY S. NAIR
AGED 38 YEARS
W/O SABU K. B., RESIDING AT KUMARATHANKAL
HOUSE, MEENACHIL VILLAGE, MEENACHIL TALUK,
KOTTAYAM DISTRICT, KERALA,, PIN - 686575.
2 SABU K. B
AGED 49 YEARS
S/O BABU, RESIDING AT KUMARATHANKAL HOUSE,
MEENACHIL VILLAGE, MEENACHIL TALUK,
KOTTAYAM DISTRICT, KERALA,, PIN - 686575.
BY ADVS.
ARUN SAMUEL
JITHIN BABU A
ANOOD JALAL K.J.
RESPONDENTS:
1 THE KERALA STATE FINANCIAL ENTERPRISES LTD
REPRESENTED BY ITS CHAIRMAN, "BHADRATHA",
P. B. NO. 510, MUSEUM ROAD,
THRISSUR DISTRICT, KERALA,, PIN - 680020
2 THE MANAGING DIRECTOR
THE KERALA STATE FINANCIAL ENTERPRISES LTD.,
"BHADRATHA", P. B. NO. 510, MUSEUM ROAD,
THRISSUR DISTRICT, KERALA,, PIN - 680020.
W.P.(C)No.36310 of 2024 2024:KER:77877
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3 THE MANAGER
THE KERALA STATE FINANCIAL ENTERPRISES LTD.,
KOZHUVANAL BRANCH, 1ST FLOOR, POOVAKULAM
BUILDINGS, KOZHUVANAL P. O.,
KOTTAYAM DISTRICT, KERALA,, PIN - 686573
BY ADV.SRI. SALIL NARAYANAN, STANDING COUNSEL
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 17.10.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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JUDGMENT
Dated this the 17th day of October, 2024
The petitioners have approached this Court aggrieved by
the coercive proceedings for recovery of financial advance
made by the Kerala State Financial Enterprises Limited to the
petitioners, invoking the provisions of the Kerala Revenue
Recovery Act, 1968.
2. The petitioners availed two chitty loans from the 1 st
respondent. The petitioners state that though the petitioners
made remittances promptly during the initial repayment period
of the chitty loan, they could not pay the subscriptions promptly
later. The repayment of chitty fell into arrears. It happened due
to reasons beyond the control of the petitioners.
3. Though the petitioners requested the respondents to
permit the petitioners to repay the overdue amounts in easy
W.P.(C)No.36310 of 2024 2024:KER:77877
monthly instalments, the respondents were not yielding. The
authorities, instead, started coercive proceedings, invoking the
provisions of the Kerala Revenue Recovery Act, 1968 and
issued Exts.P1 to P3 notices.
4. The petitioners state that they are still in a position to
clear the overdue amounts towards the chitty, if sufficient time
is given to clear the dues in easy monthly instalments. If the
respondents are permitted to continue with the coercive
proceedings and auction the secured assets provided by the
petitioners, they will be put to untold hardship and loss.
5. Standing Counsel entered appearance on behalf of
the respondents and denied all the statements made by the
petitioners. The petitioners committed default in repaying the
chitty.
6. The respondents repeatedly reminded the
petitioners and required them to clear the dues. The petitioners
deliberately omitted to do so. In the circumstances, the
respondents had no other go than to proceed against the
W.P.(C)No.36310 of 2024 2024:KER:77877
petitioners invoking the provisions of the Kerala Revenue
Recovery Act, 1968. The impugned Exts.P1 to P3 notices were
issued in these circumstances. The petitioners have not
advanced any legal reasons to thwart the coercive proceedings
initiated by the respondents.
7. The Standing Counsel, however, submitted that if
the petitioners are ready and willing to remit the balance
outstanding amount in instalments, a short breathing time can
be granted to the petitioners to clear the dues. The Standing
Counsel submitted that the outstanding amount due to the
respondents from the petitioners as on 31.10.2024 is
₹8,94,346/-.
8. I have heard the learned Counsel for the petitioners
and the learned Standing Counsel representing the
respondents.
9. The specific case of the petitioners is that the
petitioners have been making the repayment and maintaining
the chitty account initially. The default in repayment occurred
W.P.(C)No.36310 of 2024 2024:KER:77877
lately due to reasons beyond the control of the petitioners. The
petitioners have provided substantial security which will
safeguard the interest of the respondents.
10. In the facts and circumstances of the case, I am
inclined to dispose of the writ petition giving a short and
reasonable time to the petitioners to clear off the liability.
11. The writ petition is therefore disposed of with the
following directions:
(i) The petitioners shall remit the
outstanding amount of ₹8,94,346/- in 20 equal
and consecutive monthly instalments, along
with accruing interest and other administrative
charges, if any. The first of such instalments
shall be paid on or before 18.11.2024.
(ii) If the petitioners commit default in
making payments as directed above, the
respondents will be at liberty to continue with
coercive proceedings against the petitioners in
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accordance with law.
(iii) If the petitioners make payments as
directed above, coercive proceedings, if any,
against the petitioners shall stand deferred.
Sd/-
N. NAGARESH
JUDGE
ams
W.P.(C)No.36310 of 2024 2024:KER:77877
APPENDIX OF WP(C) 36310/2024
PETITIONER EXHIBITS
Exhibit P1 A TRUE COPY OF THE NOTICE DATED
28/12/2023 ISSUED BY THE 3RD RESPONDENT
TO THE 1ST PETITIONER
Exhibit P2 A TRUE COPY OF THE NOTICE DATED
28/12/2023 ISSUED BY THE 3RD RESPONDENT
TO THE 2ND PETITIONER
Exhibit P3 A TRUE COPY OF THE NOTICE DATED
28/12/2023 ISSUED BY THE 3RD RESPONDENT
TO THE 1ST PETITIONER
