TELWIN AUGUSTINE Vs. KERALA FINANCIAL CORPORATION

JUDGEMENT

(1.) THE petitioner applied for a loan from the first respondent to build a fishing boat. Ext. P1 shows that the first respondent has sanctioned a loan of Rs.20,50,000. Out of this an amount of Rs.6 lakhs has been paid to the petitioner. It has been disbursed upon a guarantee deed executed by the guarantors suggested by the petitioner. Utilising this amount, the petitioner had commenced the building of the boat. Later the guarantors have withdrawn. The petitioner is ready to substitute the guarantors to get the balance amount. The first respondent is not releasing the balance amount sanctioned as per Ext. P1. Therefore the petitioner has approached this court seeking a direction to the first respondent to release the balance amount sanctioned as per Ext. P1.

(2.) IT is submitted by the first respondent that though the petitioner had started construction of the boat by using the amount of Rs.6 lakhs granted as part payment towards the loan sanctioned as per Ext. P1, the guarantors have now withdrawn because of certain misdeeds by the petitioner. Not only that, the petitioner had also moved valuable parts from the hull of the boat which was partly built. Thus the petitioner has violated condition of grant of loan. To such a person, the loan amount cannot be disbursed, the first respondent submits.