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2022 Supreme(Ker) 1112

IN THE HIGH COURT OF KERALA AT ERNAKULAM
K. VINOD CHANDRAN, C. JAYACHANDRAN, JJ.
State of Kerala, Rep. by Chief Secretary & Ors. - Appellants
Versus
HDFC Bank Limited, Rep. by its Authorized Officer, John Mathew & Ors. - Respondents
WA No. 864 of 2022
Decided On : 30-09-2022

Advocates Appeared:
For the Appellant :Government Pleader, Shri. S. Renjith, Spl. G.P. to A.A.G, Shri. K.P. Jayachandran, Addl. Advocate General.
For the Respondent: Sri. T. Rajesh, SC, V.T. Madhavanunni, Sathisan P., SC, Dona Augustine, V.A. Satheesh, Anand V.S, S. Renjith - SPL GP.

The court emphasized the lack of authority of the Private Secretary and Ministers to interfere with revenue recovery proceedings under the Kerala Revenue Recovery Act and cautioned against initiating recovery of debts exceeding Rs.20 Lakhs under Section 17 of the RDB Act.

Headnote:

Revenue Recovery Act - Interference with Recovery Order - Sections 83, 71, and SRO No.797/79 - The court found that the Private Secretary to the Minister and the Ministers had no authority to defer revenue recovery and grant further installments under the Kerala Revenue Recovery Act. The court also cautioned against initiating recovery of debts exceeding Rs.20 Lakhs under Section 17 of the RDB Act, citing the precedent in Unique Butyle Tube Industries v. U.P. Financial Corporation (2003) 2 SCC 455.

Fact of the Case:

The State appealed against a judgment that interfered with an order granting installments in a recovery initiated under the Kerala Revenue Recovery Act. The order was challenged as without jurisdiction, and the court found it to be illegal, arbitrary, and unfair.

Finding of the Court:

The court found that the Private Secretary and the Ministers had no authority to defer revenue recovery and grant further installments. It also cautioned against initiating recovery of debts exceeding Rs.20 Lakhs under Section 17 of the RDB Act.

Issues: Jurisdiction of the Private Secretary and Ministers to defer revenue recovery and grant installments, and the permissibility of initiating recovery of debts exceeding Rs.20 Lakhs under Section 17 of the RDB Act.

Ratio Decidendi: The Private Secretary and Ministers had no authority to defer revenue recovery and grant further installments. Recovery of debts exceeding Rs.20 Lakhs under Section 17 of the RDB Act was cautioned against, citing the precedent in Unique Butyle Tube Industries v. U.P. Financial Corporation.

Final Decision: The appeal was dismissed, and the court found no reason to interfere with the findings of the learned Single Judge.

JUDGMENT :

Vinod Chandran, J.

The State is in appeal against a judgment of the learned Single Judge, which interfered with an order, issued by the Private Secretary to a Minister, granting installments in a recovery initiated under the Kerala Revenue Recovery Act (for brevity ‘R.R. Act’). The order was challenged as totally without jurisdiction and the learned Single Judge came heavily down on the action, finding it to be totally illegal, arbitrary and unfair.

2. By Ext.P2 the recovery initiated was deferred on conditions of a lump sum payment of 10% of the demand and 50 subsequent monthly installments. Admittedly, there was default committed in complying with the installments granted at Ext.P2. Subsequently, by Annexure-IV dated 19.8.2018, revenue recovery proceedings were again kept in abeyance for one month and rescheduled with 60 installments granted, to pay off the balance amounts, from 14.9.2018. Even now, the amounts have not been fully paid up as per the installments granted. Last time when we took up the matter, we directed the learned Government Pleader to inform us as to the installments paid as per the order issued and also the authority under which such orders were issued by the Private Secretary of the Minister (Ext.P2) and the Additional Chief Secretary (Annexure-IV).

3. Learned Special Government Pleader, Sri. S. Renjith, appeared for the Government and produced before us the files, as also, a statement of the installments paid. We also heard learned Counsel Sri. P. Sathisan appearing for the respondent-Bank. Special Messenger was served on the petitioner in the writ petition on 24.9.2022, but there is no appearance. It is submitted that even in the writ petition, there was no appearance for the party respondents, who are the defaulters.

4. We have been shown a statement of deposits made as per the installments granted, as per the instructions supplied by the Deputy Collector (RR), Collectorate, Kannur dated 27.9.2022, which is as follows :

Date

Arrears Amount

Collection Charge

DNF

Receipt No.

Amount and date on which the same was remitted at HDFC, Taliparamba Branch

04/17/18

2647969

198598

150

14995/14995-454

2647969 Dt. 17.4.2018

05/16/18

475774

35674

 

16437/1643689

475774 Dt. 17.5.2018

06/20/18

475774

35674

 

17514/1751398

475774 Dt. 20.6.2018

07/18/18

475774

35674

 

18566/1856575

KL13014400695/2018 (cc)

475774 Dt. 19.7.2018

09/17/18

304022

15201

 

18566/1856587

KL13014401992/2018 (cc)

304022 Dt. 18.9.2018

Total

43,79,313

3,20,821

150

 

 

It is clear from the above that, after making four installments as per Ext.P2 order, again the defaulter approached the Additional Chief Secretary and obtained an order re-scheduling the payments. Then, after one single installment, there has been no payment made.

5. In this context, we have examined the R.R.Act as to the source of power, to keep the revenue recovery initiated, in abeyance. Insofar as the revenue recovery proceedings, the visitorial jurisdiction is conferred on the Commissioner of Land Revenue and the Government under Section 83 of the Kerala Revenue Recovery Act, 1968. The power conferred under sub-section (1) can be invoked by the Commissioner of Land Revenue suo motu or on an application by an interested person. The power of the Government, again either suo motu or on an application, is to call for the report of any proceeding before the Commissioner of Land Revenue passed under sub-section (1). The provisos under both sub-Sections (1) and (2) specifically speak of the mandate of a notice to the affected party before making such an order.

6. In the present case, we see that Ext.P2 is an order made by the Private Secretary of the Revenue Minister; obviously without any notice to the Bank. The counter affidavit filed before the learned Single Judge indica

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