IN THE HIGH COURT OF KERALA AT ERNAKULAM
S.Manikumar, Shaji P.Chaly, JJ.
State of Kerala, Represented by the Secretary, Fisheries Department and Ors. – Petitioners
Versus
Kairali Purusha Swasraya Samithi and Ors. – Respondents
WA NO. 1488 of 2013
Decided On : 22-08-2022
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 – Section 14, 35 – Revenue Recovery Act, 1890 – Section 7 – Fishermen Debt Relief Commission Act, 2008 – Section 3, 7, 9, 10, 12 – Kerala State Fishermen Debt Relief Commission – Liability of fishermen – Writ court dismissed writ petition filed by first respondent/ holding that Kerala State Fishermen Debt Relief Commission has no power to deal with debts availed from institutional creditors – Held, Court have heard learned counsel for parties and perused materials available on record – Considering entire facts and circumstances of case and after going through statutory provisions relating to Fishermen Debt Relief Commission Act, 2008 (Kerala), extracted supra and considered, Court are of view that Commission has power to recommend to the Government to take over whole or part of debt and to exonerate fishermen from the consequences of a debt – Writ appeal allowed.
JUDGMENT :
S.MANIKUMAR, J.
Appellants [State of Kerala, The Kerala State Fishermen Debt Relief Commission and the State Bank of India] are the respondents 3 to 5 in the writ petition. Appellants have preferred this writ appeal challenging the judgment dated 5.3.2013 in W.P. (C)No.30691/2010 by which, writ court dismissed the writ petition filed by first respondent/Kairali Purusha Swasraya Samithi holding that Kerala State Fishermen Debt Relief Commission has no power to deal with debts availed from institutional creditors.
2. Writ petitioner/Kairali Purusha Swasraya Samithi claimed to be a self help group formed by 15 fishermen, a list of which is produced as Ext.P1 in the writ petition. It is evident from the materials available on record that for the purpose of acquisition of the inboard unit of country fishing boat with engine and other utensils, having a total investment of Rs.20 lakhs, the said group availed of a loan of Rs.10 lakhs from the respondent bank/State Bank of India.
3. Default was committed in repayment and therefore, the account was classified as NPA. Thereafter, SARFAESI proceedings were initiated and finally, the Bank obtained an order from the learned Chief Judicial Magistrate Court, Alappuzha under Section 14 of the said Act. Thereafter, an Advocate Commissioner appointed by that Court issued Ext.P5 notice dated 2.6.2010 requiring the writ petitioner to hand over possession of the secured asset to him.
4. Simultaneously, the debt was advised for revenue recovery and accordingly, Ext.P8 notice under Section 7 of the Revenue Recovery Act was issued. It is challenging Exts.P5 notice dated 2.6.2010 and P8 notice under Section 7 of the Revenue Recovery Act, writ petition was filed.
5. Reliefs sought for in the writ petition are as follows:
(ii) Issue any appropriate writ of mandamus or any other writ, order or direction commanding the 1st and 2nd respondents not to take any step or proceedings pursuant to Exhibit P4 and similar notices issued to the petitioner's members mentioned in Ext.P1 list for the recovery of the amount due from them till the 4th respondent takes a decision on its application for debt waiver or till expiry of the period of moratorium, which ever is later.
(iii) Issue a writ of certiorari or any other appropriate writ, order or calling for the original of Exhibit P8 and similar notice issued to the petitioner's members mentioned in Ext.P1 list and quashing the same.
(iv) Issue any appropriate writ of mandamus or any other writ, order or direction commanding the 3rd respondent not to take any step or proceedings under the Kerala Revenue Recovery Act against the petitioner's members mentioned in Ext.P1 list or their assets for the recovery of the amount due from them till the 4th respondent takes a decision on its application for debt waiver or till expiry of the period of moratorium, which ever is later.”
6. Ext.P5 notice dated 2nd June 2010, issued by learned Advocate Commissioner appointed by the Court reads thus:
As per the order dated .05.2010 I, Varghese Mathew have been appointed by the Hon'ble Chief Judicial Magistrate, Alapuzha as the Commissioner for taking possession of the property mentioned hereunder and handing it over to the petitioner bank. Hence in the above circumstances, this notice is issued.
I, hereby give notice to you that I will be executing the terms of the Commission Warrant issued by the Hon'ble Chief Judicial Magistrate in pursuant to the provisions under Section 14 of the Securiti
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