The court allowed a writ petition filed by a surety who was mistakenly served revenue recovery notices for the full tax arrears of a principal debtor, limiting liability to the surety bond amount plus interest.
The petitioner's liability was confined to the surety bond dated 26.04.2010 (Rs.50,000) along with interest.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU
TUESDAY ,THE 11TH DAY OF DECEMBER 2018 / 20TH AGRAHAYANA, 1940
WP(C).No. 9396 of 2018
PETITIONER/S:
MR. KALADHARAN
AGED 65 YEARS, S/O SREEDHARAN, RESIDING AT ALLIKOODAM VILA VEEDU, THAZHUTHALA, KOLLAM DISTRICT.
BY ADV. SRI.R.RAJESH(PULLIKADA)
RESPONDENT/S:
BY ADV. GOVERNMENT PLEADER
OTHER PRESENT:
SRI MATHEW GEORGE VADAKKEL, GP
W.P.(C) No. 9396/2018
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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.12.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
J U D G M E N T
The fifth respondent, a businessman, owes tax arrears to the
Commercial Tax Department. In April 2010, the petitioner executed a surety bond of Rs.50,000/- for the fifth respondent's tax arrears. Indeed, he limited his liability to Rs.50,000/-. Yet the Department initiated revenue recovery proceedings against the petitioner for all the fifth respondent's tax arrears. Aggrieved, he has filed this writ petition.
W.P.(C) No. 9396/2018
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Under these circumstances, I reckon the Department admits the petitioner's case. So this Court ought to allow the writ petition. And it does so, confining the petitioner's liability to the amount in his surety bond dated 26.04.2010 along with interest, though.
Sd/-
DAMA SESHADRI NAIDU
JUDGE
jjj
W.P.(C) No. 9396/2018
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APPENDIX
PETITIONER'S/S EXHIBITS:
EXHIBIT P1 A TRUE COPY OF THE NOTICE OF THE DEMAND DATED 19.07.2014 ISSUED FROM THE DY.TAHSILDAR (RR) TALUK OFFICE, KOLLAM DISTRICT.
EXHIBIT P2 TRUE COPY OF THE REPLY TO THE DEMAND NOTICE 31.10.2018
EXHIBIT P3 TRUE COPY OF THE POSTAL RECEIPT
2 issues framed by the court
Whether a surety executing a bond for tax arrears of another is liable only up to the bond amount or all arrears.
Whether recovery proceedings initiated against the surety for the principal's full tax indebtedness are maintainable.
1 provisions across 1 enactments
MR. KALADHARAN
THE DISTRICT COLLECTOR, KOLLAM
THE DEPUTY TAHSILDAR RR, KOLLAM
THE VILLAGE OFFICER, THAZHUTHALA
THE COMMERCIAL TAX OFFICER CTO, II CIRCLE, KOLLAM
MR. T KANNAN
DAMA SESHADRI NAIDU
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
