A surety's liability for tax arrears, once judicially determined, includes the principal amount plus accrued interest, and while courts may grant installment facilities for payment, such indulgence does not waive the liability for interest incurred due to payment delays.

JUDGMENT

The petitioners filed this writ petition being aggrieved by the recovery proceedings initiated against them for realizing an amount of Rs.7,64,791/- and interest towards the tax arrears recoverable from the 1st respondent herein. The reason for initiating the recovery proceedings against the petitioners is that, they stood as sureties to the 1st respondent to the tune of Rs.15,00,000/- towards the arrears of tax payable by the 1st respondent under the provisions of the Kerala Value Added Tax Act.

2. It is discernible from the records that, the petitioners have undertaken to indemnify the liability of the 1st respondent to the tune of Rs.15,00,000/-, and out of the said amount, Rs.7,35,209/- is already remitted by the petitioners. It is also to be noted that, in Ext.P2 judgment rendered by this Court, the liability of the petitioners has been fixed as Rs.15,00,000/-. When further proceedings are initiated to realize the balance amount remaining to be paid from the liability of Rs.15,00,000/- determined by this Court as per Ext.P2, this writ petition is submitted with the following reliefs.

i. To issue a writ of certiorari or other appropriate writ or order

quashing Ext.P3.

ii. Issue a writ of mandamus or any other appropriate writ, order, or

direction commanding the respondents to permit the petitioners to

remit the balance amount of Rs.7,64,791/- due towards the surety liability fixed as per Ext.P2 judgment in W.P.(c.) No.19201/2017 in reasonable monthly installments as may be fixed by this Hon’ble Court.

Iii. Issue a writ of mandamus or any other appropriate writ, order, or direction restraining the respondents from in initiating or continuing any coercive recovery proceedings against the petitioners pursuant to Ext.P3 letter bearing No.D7-7154/2017 dated 18.08.2025, pending payment of the installments, if any, granted by this Hon’ble Court.

iv. To issue a declaration that the liability of the petitioenrs as sureties stands limited to Rs.15,00,000/- as fixed by this Hon’ble Court in Ext.P2 judgment dated 19.06.2017 in W.P.(c.) No.19201/2017 and that any recovery beyond the said amount is without authority of law.

v. Grant such other reliefs as this Hon’ble Court may deem just and proper in the interest of justice, including costs.

vi. To dispense with English Translation of the Malayalam Documents.

3. When the matter came up for admission before this Court, an interim order was passed, granting stay of the proceedings on the condition that the petitioner shall deposit an amount of Rs.50,000/-.

It is reported that the said condition has been complied with.

4. As far as the extent of liability of the petitioners is concerned, the same is already determined by this Court in Ext.P2 judgment as Rs.15,00,000/-. Therefore, the respondent shall be at liberty to recover the said amount along with interest that became payable for the said amount, for the delay on the part of the petitioner in making the said payment. Since this Court has already determined the liability in Ext.P2, the petitioners cannot seek exoneration from the liability in respect of the said amount and the interest accrued thereon.

5. At this juncture, the learned counsel for the petitioner seeks an opportunity to settle the liability in installments. After considering all relevant aspects, I am of the view that this writ petition can be disposed of by permitting the petitioner pay the remaining amount in installments. Accordingly, it is ordered that the respondent Nos. 2 to 4 shall permit the petitioners to pay the remaining amount of Rs.7,14,791/- along with the interest and other incidental charges that fell due in respect of the said amount, in ten monthly installments. The 1st installment will become due on the 30th day of Ju