The petitioner was the Managing Director of M/s. Star Agro & Wheat Roller Flour Mills Private Limited. The unit was established by availing a loan from the 2nd respondent Kerala State Industrial Development Corporation Limited (KSIDC). The business of the company ended in a loss. So the company could not pay the amount due to the 2nd respondent. The said respondent took over the assets of the Company under Section 29 of the State Financial Corporations Act. The property was sold in public auction for an amount of Rs.1,51,22,222/-. The amount due to the KSIDC was only Rs.1,12,38,205/-. The Federal bank Limited had a second charge on the property and for recovering the amount due to it, the Bank moved the Debt Recovery Tribunal and as per the direction of the DRT, the balance amount was deposited with the said Tribunal.

2. The petitioner, after the sale was over, filed Ext.P1 representation before the Government, claiming that the closure of the loan account may be treated as one under the One Time Settlement Scheme and the excess amount received by the KSIDC may be refunded to him. This Court, by Ext.P2 judgment dated 13/11/2002 directed the Government to consider the said