The interpretation of 'amounts due' under S.71 of the Kerala Revenue Recovery Act and its applicability to time-barred debts.

Headnote:
Debt Recovery - Kerala Revenue Recovery Act - S.5, S.68, S.71 - The court discussed the interpretation of 'amounts due' under S.71 of the Kerala Revenue Recovery Act and its applicability to time-barred debts. The court held that claims which are time-barred on the date when a requisition is issued under S.69(2) of the said Act are not amounts due under S.71 and cannot be recovered under the said Act.
Fact of the Case:

The appeals raised the question of whether a debt barred by the law of limitation can be recovered under the Kerala Revenue Recovery Act. The Division Bench of the Kerala High Court held that the Act cannot be availed of once the period prescribed for recovery under the Limitation Act has expired. However, a subsequent Full Bench of the Kerala High Court overruled this decision.
Finding of the Court:

The court found that claims which are time-barred on the date when a requisition is issued under S.69(2) of the Kerala Revenue Recovery Act are not amounts due under S.71 and cannot be recovered under the said Act.
Issues: The main issue was the interpretation of 'amounts due' under S.71 of the Kerala Revenue Recovery Act and its applicability to time-barred debts.
Ratio Decidendi: The court interpreted the provisions of the Kerala Revenue Recovery Act and held that claims which are time-barred on the date when a requisition is issued under S.69(2) of the said Act are not amounts due under S.71 and cannot be recovered under the said Act.
Final Decision: Civil Appeal Nos. 12393 and 12394 of 1996 were allowed, while Civil Appeal Nos. 4211 of 1988, 4393 of 1988, 4175 of 1988, and Civil Appeal No. 194511999 (arising out of SLP (C) No. 12051 of 1988) were dismissed. There will, however, be no order as to costs.

Judgment :-

1. Leave granted in S.L.P. (C) No. 12051 of 1988.

2. All these appeals raise a common question of law whether a debt which is barred by the law of limitation can be recovered by resorting to recovery proceedings under the Kerala Revenue Recovery Act of 19 68. A Division Bench of the Kerala High Court in the impugned common judgment dated 2.11.1987 in C.A. No. 4211 of 1988, C.A. No. 4393 of 1988 and C.A. No. 4175 of 1988 held that the absence of any provision in the Kerala Revenue Recovery Act creating a substantive right to recover time-barred debts, the said Act which provides for summary recovery cannot be availed of once the period prescribed for recovery under the Limitation Act has expired. This judgment of the Division Bench of the Kerala High Court was followed by a subsequent Division Bench in its judgment dated 29.1.1988 which is the subject matter of appeal arising from S.L.P. (C) No. 12051 of 1988. The above decisions of the Division Bench how ever have been overruled by a Full Bench of the Kerala High Court by its judgment dated 10.4.1996 which is the judgment under appeal in C.A. Nos. 12393 and 12394 of 1996. All these appeals have, therefore, been heard together.

3. The Kerala Revenue Recovery Act, 1968 is an act to consolidate and amend the laws relating to recovery of arrears of public revenue in the State of Kerala. Under S.5 of the Kerala Revenue Recovery Act 1968, whenever public revenue due on land is in arrear, such arrear, together with interest, if any, and cost of the process may be recovered by one or more of the modes set out in that section. One of the modes so prescribed is attachment and sale of the defaulters movable or immovable property. Under S.68 of the said Act, all sums due to the Government on account of quit rent or revenue other than public revenue dues on land as also all sums declared by any other law for the time being in force to be recoverable as arrear of public revenue due on land or land revenue can be recovered under the provisions of the said Act. Under S.2(a) of the said Act arrears of public revenue due on land is defined to mean the whole or any portion of any kist or installment of such revenue not paid on the day on which it falls due according to the kisbandy or any engagement or usage. Under sub-so) of S.2 public revenue due land means the land revenue charged on the land and includes all other taxes, fees and ceases on land, whether charged on land or not, and all cases or other dues payable to the Government on account of water used for the purposes of irrigation. The Act, therefore, provides a method for speedy recovery of arrears of public revenue. Under S.71, however, there is a provision for extending the Act to recovery of certain other dues if the Government is satisfied that it is necessary to do so in public interest. Under S.71 it is provided as follows:

"Power of Government declare the Act applicable to any institution:- The Government may, by notification in the Gazette, declare, if they are satisfied that it is necessary to do so in public interest, that the provisions of this Act shall be applicable to the recovery of amounts due from any person or class of persons to any specified institution or any class or classes of institutions, and there upon all the provisions of this Act shall be applicable to such recovery."

4. In exercise of its powers under S.71, the State Government has issued a notification bearing S.R.O. No. 797 of 79 by which the provisions of the said Act have been made applicable to the recovery of the amounts due from any person to any bank on account of any loan advanced to such person by that bank for agriculture or agricultural purposes. Under another notification S.R.O. No. 851 of 79 issued under S.71 by the State Government the provisions of the said Act are also made applicable to the recovery of amounts due from any person or class of persons to the Kerala Financial Corporation. Thus in public interest the State Government

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