K.S. Radhakrishnan, J.

1. The question involved in this case is as to whether respondents 2 to 4 arelegally entitled to recover commission or collection charges on initiation ofrevenue recovery proceedings, eventhough no amount was recovered throughthe proceedings initiated under S.71 of the Revenue Recovery Act, 1968.

2. Petitioner is a registered society, set up and developed at the instance ofthe Kerala Khadi and Village Industries Board for the purpose ofmanufacturing and supplying 7-Spindle Muslin Charkhas. Petitioner hadavailed of a loan from the respondent Board. Total amount advanced by theBoard was Rs. 17,85,871. Petitioner could not repay the amount due tovarious financial difficulties. Board then initiated action for recovery of theamount. Total amount due to the Board as on 31.3.1985 was Rs.23,50,303.67. There was some litigation between the petitioner and therespondent Board. However, no amount was recovered from the petitionerthrough revenue recovery proceedings.

3. In order to amicably settle the matter, petitioner sent a latter dated17.11.1994 putting forward certain suggestions/proposals to the Board.Respondent Board vide their letter dated 21.1.1995 informed