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2017 Supreme(Online)(KER) 48819
HIGH COURT OF KERALA
P. B. Suresh Kumar, J
KUNHABDULLA T C – Appellant
Versus
DISTRICT COLLECTOR – Respondent
WRIT PETITION (CIVIL) 23218/2017
The court established the principle that debtors may be permitted installment repayments under the Revenue Recovery Act, contingent on timely remittance to avoid recovery actions.
Headnote:
Chitties - Revenue Recovery - Revenue Recovery Act Section List - The court addressed recovery proceedings initiated against a petitioner for unpaid liabilities arising from chitties. It allowed payment in installments, ensuring compliance to defer proceedings, illustrating the balance between creditor rights and debtor relief under the Revenue Recovery Act.
Fact of the Case:
The petitioner has subscribed to six chitties with the Kerala State Financial Enterprises Ltd., with liabilities amounting to approximately Rs.62,00,000. Proceedings were initiated due to non-liquidation of the debts, leading to the writ petition challenging those actions.
Finding of the Court:
The court permitted the petitioner to repay the owed amounts in installments and deferred further recovery actions, highlighting the need for equitable relief in financial obligations while maintaining creditor protections.
Issues: Whether the petitioner can be allowed to pay the outstanding liabilities in installments instead of facing immediate recovery proceedings.
Ratio Decidendi: The decision underscores the court's discretion in allowing installment payments based on the circumstances of the case, balancing the interests of both the debtor and the creditor within the framework of the Revenue Recovery Act.
Final Decision: The court allowed installment payments for the petitioner while deferring further recovery actions contingent on adhering to the payment schedule.
JUDGMENT
The petitioner has subscribed six chitties conducted by the Kerala State Financial Enterprises Ltd. (KSFE), of which four have been prized. As against the remaining two chitties, the petitioner availed two loans. The liability the petitioner as of now in relation to the said transactions is approximately Rs.62,00,000/-. Since the petitioner has not liquidated the said liability in terms of the agreements entered into by him with the KSFE, proceedings have been initiated against the petitioner for realisation of the said amounts under the Revenue Recovery Act. The said proceedings are under challenge in this writ petition.
2. Heard the learned counsel for the petitioner and also the learned Standing Counsel for the KSFE.
3. At the time of arguments, the learned counsel for the petitioner only prayed for indulgence of this Court to liquidate the liability in instalments. Having regard to the facts and circumstances of the case, I deem it appropriate to dispose of the writ petition permitting the petitioner to pay a sum of Rs.10,00,000/- (Rupees ten lakhs only) within one month from today and another sum of Rs.10,00,000/-, within a month thereafter. If the petitioner remits the aforesaid amounts within the time stipulated, the petitioner shall be permitted to pay the balance amounts in eight equal monthly instalments thereafter. Needless to say that if the petitioner remits the first instalment of Rs.10,00,000/- as directed above, further proceedings initiated against the petitioner shall be deferred. It is also made clear that if the petitioner commits default in remitting any one of the instalments referred to above, the proceedings already initiated against him can be revived and continued. Ordered accordingly.
P.B.SURESH KUMAR JUDGE
//TRUE COPY// P.A. TO JUDGE
