A.M.PRAKASAN Vs. STATE OF KERALA

JUDGEMENT

(1.) This writ petition is filed by the petitioner seeking to quash Ext.P2 and further to declare that Ext.P1 is illegal and irregular and is sanctioned without any authority or support of law, and for other related reliefs. Material facts for the disposal of the writ petition are as follows:

(2.) Writ petitioner is a shareholder of the 4th respondent Bank. The 8th respondent while functioning as the President of the 4th respondent Bank, accorded sanction for a mid -term loan of Rs.1,02,75,000/ - to the 6th respondent hospital in which the 8th respondent himself was the President during that period.

(3.) According to the petitioner, loan was sanctioned before the order of the Joint Registrar was obtained. The Joint Registrar cautioned that loan can be sanctioned only after obtaining property security towards loan and after obtaining valuation statement of the property offered as security. The property offered as security was only to the extent of 2 acres and 2 cents, which according to the petitioner, was hardly enough to secure the loan advanced. That apart, it is contended that, the property offered as security was never accepted and registered as security and the same was returned to the 6th respondent hospital.