Subash R. v. Kerala Financial Corporation and Others

``` WP(C) NO. 10548 OF 2025 : 1 : ``` ``` 2025:KER:30486 ``` **==> picture [58 x 57] intentionally omitted <==** # **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** # **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN TUESDAY, THE 8[TH] DAY OF APRIL 2025 / 18TH CHAITHRA, 1947 ``` ``` WP(C) NO. 10548 OF 2025 ``` ## **`PETITIONER:`** ``` SUBASH R, AGED 49 YEARS S/O. RAMACHANDRAN, CHERUVILAPUTHEN VEEDU, VENDAR P.O, PUTHOOR VILLAGE, KOTTARAKKARA, KOLLAM., PIN - 691507 ``` ``` BY ADVS. VISHNU BHUVANENDRAN B.ANUSREE VINEETHA A.A. SREELAKSHMI B. ABDUL FATHAH ARYA B. NOYAL JOHNY ``` ## **`RESPONDENTS:`** ``` 1KERALA FINANCIAL CORPORATION BRANCH OFFICE, A.G.C COMPLEX, BEACH ROAD KOLLAM. REPRESENTED BY ITS AUTHORIZED OFFICER- 691001 ``` - **`2 THE MANAGER`** ``` STRESSED ASSETS RECOVERY BRANCH, KERALA FINANCIAL CORPORATION, VELLAYAMBALAM, THIRUVANANTHAPURAM., PIN - 695033 ``` - **`3 SUNDARAN B CHAITHANYA, VALLAM, KOTTARAKKARA PO, KOLLAM., PIN - 691506`** ``` WP(C) NO. 10548 OF 2025 : 2 : ``` **==> picture [58 x 57] intentionally omitted <==** ``` 2025:KER:30486 ``` ``` BY ADVS. ADV. VENUGOPAL M.R.,SC DHANYA P.ASHOKAN (SR.)(K/001671/2000) S. MUHAMMAD ALIKHAN(K/000644/2020) ANJANA S. RAJ(K/001318/2024) ``` ``` THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.04.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` WP(C) NO. 10548 OF 2025 : 3 : ``` ``` 2025:KER:30486 ``` **==> picture [58 x 57] intentionally omitted <==** ## **JUDGMENT** The 3[rd] respondent had availed a loan from the Kerala Finance Corporation (KFC)- 1[st] respondent, for which the petitioner stood as guarantor and mortgaged his property having an extent of 30 Ares comprised in Re.Sy.No.52 of Puthoor Village, Kottarakkara Taluk, Kollam. The 3[rd] respondent committed default in payment of installments and the 1[st] respondent initiated recovery proceedings. The petitioner apprehends that his property will be proceeded against by the KFC, which may result in the reduction of his CIBIL score. The petitioner has therefore made a representation to the KFC to release the property ``` WP(C) NO. 10548 OF 2025 : 4 : ``` ``` 2025:KER:30486 ``` **==> picture [58 x 57] intentionally omitted <==** which he had offered as secured asset. On receipt of the representation, the 2[nd] respondent passed Ext.P4 proceedings. Aggrieved by the stand taken by the 2[nd] respondent in Ext.P4, the petitioner has filed this writ petition for the following reliefs. “i. issue a writ of certiorari or any other appropriate writ, direction or order setting aside exhibit P4 order and to direct the respondents 1 and 2 to consider the request of the petitioner afresh; ii. issue a writ of mandamus or any other appropriate writ, direction or order, directing the respondents 1 and 2 to release the petitioner from the loan liability, on payment of the amount revalued by the 1[st] respondent for the property of the petitioner. iii. Issue a writ of mandamus or any other appropriate writ, direction or ``` WP(C) NO. 10548 OF 2025 : 5 : ``` ``` 2025:KER:30486 ``` **==> picture [58 x 57] intentionally omitted <==** order, directing the 1[st] respondent to consider exhibit P5 and P6 representations of the petitioner; iv. issue a writ of mandamus directing the respondents 1 and 2 not to proceed with the coercive proceedings of the property in question belonging to the petitioner as per Ext.P1 Notice. v. Issue a writ of mandamus or any other appropriate writ, direction or order, directing the respondents 1 and 2 not to report the liability of the petitioner to credit bureaus, thereby adversely affecting his CIBIL score.” 2. A statement has been filed on behalf of the respondents 1 and 2 and paragraph No.8 thereof reads as follows: “8. In compliance with the said order of this Hon'ble Court, the Corporation informed the petitioner to appear ``` WP(C) NO. 10548 OF 2025 : 6 : ``` ``` 2025:KER:30486 ``` **==> picture [58 x 57] intentionally omitted <==** before the Assistant General Manager on 20.06.2024 for a hearing. During the the was hearing, petitioner informed that the value of the security property owned by him, as per the valuation dated 28.03.2024 conducted by the Corporation, amounts to Rs.52.50 lakhs. It was further conveyed that, in order to release the collateral security in question, the petitioner must remit an equivalent amount of 52.50 lakhs and, to maintain security coverage for the balance loan, based on the value of the security property to be released and the present outstanding balance, he must remit an additional amount of Rs.11.88 lakh. Otherwise, he is required to substitute additional security worth Rs.64.38 lakhs.” ## 3. The learned counsel for the petitioner ``` WP(C) NO. 10548 OF 2025 : 7 : ``` ``` 2025:KER:30486 ``` **==> picture [58 x 57] intentionally omitted <==** submits that the amount referred to in the statement is not based on the fair value of the property and requires a re-consideration. It is submitted that the petitioner will make necessary request before the 2[nd] respondent showing the details of the fair value of the property so that the mortgaged property of the petitioner can be released based on the amount arrived at on the basis of the fair value. 4. In the facts and circumstances of the case, there will be a direction to the petitioner to make appropriate representation before the 2[nd] respondent within a period of one week from the date of receipt of a copy of this judgment. If such representation is received, the 2[nd] respondent shall consider the same, in accordance with law, within ``` WP(C) NO. 10548 OF 2025 : 8 : ``` ``` 2025:KER:30486 ``` **==> picture [58 x 57] intentionally omitted <==** one month therefrom. Till such time orders are passed and communicated to the petitioner, there shall not be any coercive proceedings as against the secured asset of the petitioner. The writ petition is disposed of accordingly. **Sd/-** **MURALI PURUSHOTHAMAN JUDGE** SB ``` WP(C) NO. 10548 OF 2025 : 9 : ``` ``` 2025:KER:30486 ``` **==> picture [58 x 57] intentionally omitted <==** ## **`APPENDIX`** ## **`PETITIONER EXHIBITS`** ``` Exhibit P1TRUE COPY OF THE NOTICE DATED 08.08.2023 ISSUED BY THE 2ND RESPONDENT. ``` ``` Exhibit P2TRUE COPY OF THE REPRESENTATION DATED 15.02.2024 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT CORPORATION. ``` ``` Exhibit P3TRUE COPY OF THE JUDGMENT DATED 03.06.2024 IN WP(C). NO. 14051/2024. ``` ``` Exhibit P4TRUE COPY OF THE PROCEEDINGS BEFORE THE ASSISTANT GENERAL MANAGER OF THE 1ST RESPONDENT CORPORATION DATED 20.06.2024. ``` ``` Exhibit P5TRUE COPY OF THE LETTER DATED 30.07.2024 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT CORPORATION. ``` ``` Exhibit P6TRUE COPY OF THE LETTER DATED 05.09.2024 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT CORPORATION. ```