Kerala High Court
Shiji C.R vs Kerala State Financial Enterprises ... on 10 March, 2025
Author: Murali Purushothaman
Bench: Murali Purushothaman
WP(C) NO.7306 OF 2025 1
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
MONDAY, THE 10TH DAY OF MARCH 2025 / 19TH PHALGUNA, 1946
WP(C) NO.7306 OF 2025
PETITIONER:
SHIJI C.R, AGED 49 YEARS,
S/O C.K RAJAPPAN OMEPARAMBIL HOUSE
VYTTILA (P.O), ERNAKULAM, PIN - 682019
BY ADVS.
SHINTO THOMAS
RAM VINAYAK
MOHAMED ASLAM V.P.
RESPONDENTS:
1 KERALA STATE FINANCIAL ENTERPRISES (KSFE)
ALUVA MAIN BRANCH OLD PRIVATE BUS STAND BUILDING
SUB JAIL ROAD ERNAKULAM REPRESENTED BY BRANCH
MANAGER, PIN - 682301
2 DEPUTY COLLECTOR (RR), OFFICE OF THE DEPUTY
COLLECTOR (RR) KSFE LTD. P.B NO. 510 BHADRATHA
MUSEUM ROAD THRISSUR, PIN - 680020
BY SRI.SALIL NARAYANAN, SC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 10.03.2025, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
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JUDGMENT
The loan availed by the petitioner from the
1st respondent Kerala State Financial Enterprises
Ltd. [for short, 'the KSFE'] fell in arrears. The 1st
respondent initiated recovery proceedings. The
petitioner has filed this writ petition for the
following reliefs:
"i) Issue a writ of mandamus directing
Respondent No.1 to consider the amount of
Rs.1,750,000/- already remitted by the
petitioner and adjust it against the alleged
arrears, ensuring a fair and accurate
determination of liability, in strict
compliance with Exhibit P3 order of this
Hon'ble Court, and further direct the
respondent to close the loan and release the
property of the petitioner.
ii) Issue a writ of mandamus directing the
respondent to consider the amount of Rs
2,565,568/ received under the head of dividends
in the defaulted chits of the petitioner while
determining the total outstanding amount and to
release the said amount to the petitioner, as
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the petitioner is not a defaulted subscriber
under the Chit Funds Act and is entitled to
receive the dividend.
iii) Direct Respondents to consider Exhibit P8
and Exhibit P10 representations submitted by
the petitioner in a time-bound manner and
further to stop recovery proceedings as per
Exhibit P9.
iv) Direct the Respondents to compensate the
petitioner for the financial distress caused
due to their arbitrary actions, and award
litigation costs incurred in approaching this
Hon'ble Court for justice."
2. When the writ petition came up for
consideration today, the learned Counsel for the
petitioner submitted that, the petitioner intends to
move the Arbitrator under Section 64 of the Chit
Funds Act, 1982. It is further submitted that, to
enable the petitioner to avail the said remedy,
coercive proceedings against him may be kept in
abeyance.
3. Heard the learned Counsel for the
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petitioner and the learned Standing Counsel for
KSFE.
4. The learned Standing Counsel for the KSFE
submits that the petitioner has not made any
remittance after 2013.
5. Since is submitted that the petitioner is
intending to move the Arbitrator under Section 64 of
the Chit Funds Act, this writ petition is disposed
of. To enable the petitioner to avail such remedy,
all coercive proceedings against him shall stand
deferred for a period of one month.
Sd/-
MURALI PURUSHOTHAMAN
JUDGE
sp/11/03/2025
2025:KER:20428
APPENDIX OF WP(C) 7306/2025
PETITIONER EXHIBITS
Exhibit P1 THE TRUE COPY OF THE ADVERTISEMENT MADE
BY RESPONDENT NO. 1 REGARDING THE LUCKY
YEAR CHIT VIDE ORDER GOV (RT) 530/2012 TD
DATED 24.07.2012
Exhibit P2 THE TRUE COPY OF THE STATEMENT ISSUED BY
RESPONDENT NO.1, CONFIRMING THAT THE
PETITIONER HAS PAID MORE THAN FIVE
INSTALLMENTS IN ALL FOUR CHITS AND THAT
10% OF THE TOTAL CHIT AMOUNT WAS
REMITTED, DATED 19.09.2020
Exhibit P3 THE TRUE COPY OF THE JUDGMENT IN WPC NO.
33866 OF 2014, DATED 29.10.2019
Exhibit P4 THE TRUE COPY OF THE REPRESENTATION MADE
BY THE PETITIONER, DATED 13.11.2019
Exhibit P5 THE TRUE COPY OF THE REPLY GIVEN BY
RESPONDENT NO.1 TO THE PETITIONER, WHICH
THE PETITIONER OBTAINED UNDER RTI, DATED
17.11.2023
Exhibit P6 THE TRUE COPY OF THE DEMAND NOTICE SENT
BY THE RESPONDENT NO.2 TO THE PETITIONER,
DATED 11.10.2022
Exhibit P7 THE TRUE COPY OF THE AWARD PASSED IN THE
LOK ADALATH, DATED 17.02.2023, WITH PLP
Exhibit P8 THE TRUE COPY OF THE REPRESENTATION MADE
BY THE PETITIONER BEFORE THE RESPONDENT
NO.2, DATED 17.02.2023
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Exhibit P9 THE TRUE COPY OF THE DEMAND NOTICE SENT
BY RESPONDENT NO. 2 TO THE PETITIONER,
DATED 10.12.2024 IS PRODUCED HEREWITH AND
MARKED AS EXHIBIT P9.
Exhibit P10 THE TRUE COPY OF THE REPRESENTATION MADE
BY THE PETITIONER BEFORE RESPONDENT NO 1,
DATED 30.12.2024
Exhibit P11 THE TRUE COPY OF THE REPLY SENT BY
RESPONDENT NO.2 TO THE PETITIONER, DATED
14.01.2025
Exhibit P12 THE TRUE COPY OF THE LETTER SENT BY THE
RESPONDENT NO.1 TO THE PETITIONER
REGARDING THE SUBSTITUTION OF THE CHITS,
DATED 28.01.2015
