S KALIAMMAL Vs. REGISTRAR (HOUSING)

JUDGEMENT

(1.) The petitioner's husband, the deceased S.V.Shanmuganathan was a member of the third respondent-Society, which is governed by the Tamil Nadu Cooperative Societies Act. He had secured loan under the Low Income Group category, to the tune of Rs. 20,000/- for the purpose of renovating his house. He did not repay the said amount. Therefore, the third respondent filed A.R.C.No.393 / 2002-2003 before the Deputy Registrar of Cooperative Societies under Section 90 of the Tamil Nadu Cooperative Societies Act, 1983. Accordingly, the Deputy Registrar passed an award on 29.01.2004 for a sum of Rs. 62,714.55 with interest at 16.10%. Even after passing of the award, Mr.S.V.Shanmuganathan, did not repay the amount. Therefore, the third respondent filed Execution Proceedings in C.E.P.No.226 / 2004-2005 for the sale of the mortgaged property. Several notices were issued to Mr.S.V.Shanmuganathan. Thereafter, the impugned notice was issued fixing 12.06.2010 as the date for auction. Thereafter, the petitioner, who is the wife of the deceased Shanmuganathan, filed the present writ petition challenging the sale notice and seeking a further direction to the respondents to waive the entire loan amount in view of the Waiver Scheme floated by the first respondent by the Notification published in Dhina Thanthi dated 22.06.2008.

(2.) I have heard the learned counsel for the petitioner, learned Government Advocate appearing for respondents 1 and 2 and the learned counsel for the third respondent and perused the records carefully.

(3.) The third respondent has filed a detailed counter wherein, he has stated that Mr.S.V.Shanmuganathan had applied for loan under the Low Income Group. As per the Waiver Scheme introduced by the Government of Tamil Nadu in G.O.Ms.No.113, Housing and Urban Development Department, dated 20.05.2008, if the debtor belongs to Economically Weaker Section and if the amount does not exceed Rs. 25,000/- the entire amount will be waived. Suppose the loan amount is more than Rs. 25,000/- and less than Rs. 1,00,000/- and the debtor belongs to Low Income Group, in that event, if the outstanding principal amount and 50% of the interest amount is paid by the debtor, then, 50% of the interest amount including penal interest will stand waived. It is stated in the counter that since Mr.S.V.Shanmuganathan did not belong to Economically Weaker Section and since he falls within the Low Income Group, if only 50% of the interest and the outstanding principal amount is paid, then, the rest will be waived.