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

2 Petitioner is a registered society, set up and developed at the instance of the Kerala Khadi and Village Industries Board for the purpose of manufacturing and supplying 7-Spindle Muslin Charkhas. Petitioner had availed of a loan from the respondent Board. Total amount advanced by the Board was Rs. 17,85,871. Petitioner could not repay the amount due to various financial difficulties. Board then initiated action for recovery of the amount. 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 the respondent Board. However, no amount was recovered from the petitioner through revenue recovery proceedings.

3 In order to amicably settle the matter, petitioner sent a latter dated 17.11.1994 putting forward certain suggestions/proposals to the Board. Respondent Board vide their letter dated 21.1.1995 informed the petitioner that