Petitioner challenged refusal of mutation due to pending loan recovery by finance corporation. Court directed mutation with tax acceptance but noted attachment, overriding earlier precedent.
Petitioner need lien release certificate; Respondents 3 and 4 directed to effect mutation and accept tax after endorsing attachment.
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 V.G.ARUN
WEDNESDAY, THE 13TH DAY OF JULY 2022 / 22ND ASHADHA, 1944
WP(C) NO. 5805 OF 2022
PETITIONER/S:
JOSHY MATHEW
AGED 45 YEARS
S/O. P.T.MATHEW, PUNCHATHARAPPIL HOUSE, KOODARANJI16
201710144 KAVITHA
SURENDRAN 07-09-1990 91.28 5 96.28 96 HINDU EZHAVA
EZHAVAS, THIYYAS AND BILLAVAS POST,
KOZHIKODE DISTRICT - 673604, PRESENTLY RESIDING AT,
F24, KANAHA APARTMENTS, GURUVAYOOR POST, THRISSUR -
680101
, PIN - 68010116 201710144 KAVITHA
SURENDRAN 07-09-1990 91.28 5 96.28 96 HINDU EZHAVA
EZHAVAS, THIYYAS AND BILLAVAS
BY ADVS.
E.C.AHAMED FAZIL
K.P.SUFIYAN
RESPONDENT/S:
1 STATE OF KERALA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, SECRETARIAT, THIRUVANNATHAPURAM – 695001, PIN - 6900012 THE DISTRICT COLLECTOR, THRISSUR CIVIL STATION, AYANTHOLE POST, THRISSUR - 680003, PIN - 6800033 THE TAHSILDAR (LR), CHAVAKKAD TALUK OFFICE, CHAVAKKAD, THRISSUR DISTRICT - 680506 , PIN - 6805064 THE VILLAGE OFFICER, CHAVAKKAD VILLAGE OFFICE, CHAVAKKAD, CHAVAKKAD POST, THRISUR DISTRICT - 680506, PIN - 6805065 KERALA TRANSPORT DEVELOPMENT FINANCE CORPORATION LIMITEDLEVEL 8, TRANS TOWERS, VAZHUTHACAD, THIRUVANANTHAPURAM - 695014REPRESENTED BY ITS MANAGING DIRECTOR
, PIN - 695014
6 KERALA TRANSPORT DEVELOPMENT FINANCE CORPORATION LIMITED, BRANCH OFFICE, THRISSUR FIRST FLOOR, SUHASRA TOWERS, ROUND NORTH, SHORNUR ROAD, 680001WP(C) NO. 5805 OF 2022
2
REPRESENTED BY ITS AUTHORIZED OFFICER
, PIN - 680001
7MOOKAMBIKA HOMES AND APARTMENTS PVT. LIMITED
20/243, POOTHLE ROAD, POOTHOSE, THRISSUR -
680004, REPRESENTED BY ITS MANAGING DIRECTOR ,
PIN - 680004
BY ADVS.
SHRI.T.P SAJAN, SC, KERALA STATE ROAD TRANSPORT
CORPORATION - KSRTC
SHRI.T.P.SAJAN, SC, KTDFC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 13.07.2022, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) NO. 5805 OF 2022
3
JUDGMENT Dated this the 13th day of July, 2022
The petitioner had purchased a flat in the Apartment Complex constructed by the 7th respondent. The building was constructed after availing financial assistance from the 5th respondent. After purchasing the flat, the petitioner approached the 4th respondent for effecting mutation. Thereupon, the petitioner was informed that for effecting mutation, he has to produce lien release certificate from the 5th respondent. On enquiry, petitioner came to know that the 7th respondent had defaulted the loan availed from the 5th respondent and further that, the flat purchased by the petitioner was earlier booked by one Radha V.Pillai and Venugopal Pillai. The said persons were issued lien release certificate by the 5th respondent. Later, Radha V.Pillai and Venugopal Pillai cancelled their booking. Surprisingly, when the petitioner approached the 5th respondent for issue of corrected lien release certificate, he was asked to approach through the builder. Accordingly, the 7th respondent issued Ext.P6 mail stating that the builder had
WP(C) NO. 5805 OF 2022
4
no objection in the certificate being issued to the petitioner. As there was no response from the 5th respondent, petitioner approached the Tahsildar, Chavakkad seeking to effect transfer of registry to his name. However, the third respondent expressed inability to effect mutation without a lien release certificate issued by the 5th respondent. Thereupon, petitioner made a request to the District Collector, resulting in Ext.P9 communication, reiterating the stand taken by the Village Officer and Tahsildar. Hence, this writ petition.
WP(C) NO. 5805 OF 2022
5
reliance is placed on the decision in [2019 (4) KHC 799] and [2010 (4) KHC 142].
The 7th respondent had availed a construction loan of Rs.10 Crores on the security of the immovable property in which the apartment complex was proposed to be constructed. Accordingly, the property was mortgage to the KTDFC. Out of the total amount sanctioned, Rs.8,80,00,000/- was disbursed. Thereafter, the repayment of the loan was defaulted and the 5th respondent was constrained to initiate revenue recovery proceedings against the borrower and guarantors. As part of the proceedings, the land and the apartment building was attached. Ext.P4 NOC was issued in the name of Radha V.Pillai as early as on 30.05.2013 before attachment was effected. By the time petitioner purchased the flat in the year 2019, the 5th respondent had initiated revenue recovery proceedings against the property. Between 2013
WP(C) NO. 5805 OF 2022
6
and 2019, Radha V.Pillai had cancelled her booking and had relinquished her right over the flat. Thereupon, the ownership of the flat reverted to the 7th respondent. The petitioner committed the mistake of purchasing the flat without verifying the encumbrance details.
WP(C) NO. 5805 OF 2022
7
cannot reject the request for mutation and to accept basic
tax on the ground that revenue recovery proceedings are pending.
In the result, the writ petition is disposed of as under;
The prayer for directing the 5th respondent to issue lien release certificate is rejected. Respondents 3 and 4 are directed to effect mutation with respect to the flat purchased by the petitioner and to accept tax, after making an endorsement regarding the attachment effected by the 5th respondent in the revenue records.
Sd/-
V.G.ARUN
JUDGE
RK
WP(C) NO. 5805 OF 2022
8
APPENDIX OF WP(C) 5805/2022
PETITIO |
NER EXHI |
BITS |
|---|---|---|
Exhibit |
P1 |
TRUE COPY OF SALE DEED NO. 228 OF 2019OF SUB REGISTRAR OFFICE, CHAVAKKAD |
Exhibit |
P2 |
TRUE COPY OF ENCUMBERANCE CERTIFICATENO. 5612/2021 ISSUED FROM SUB REGISTRAROFFICE, CHAVAKKAD |
Exhibit |
P3 |
TRUE COPY OF COMMUNICATION DATED09.01.2018 ISSUED BY KERALA TRANSPORTDEVELOPMENT FINANCE CORPORATION LIMITEDTO TAHSILDAR (RR), CHAVAKKAD |
Exhibit |
P4 |
TRUE COPY OF LIEN RELEASING CERTIFICATENO. 4/CL/IT/CON/2010-11(41) DATED30.05.2013 ISSUED BY THE KERALATRANSPORT DEVELOPMENT FINANCECORPORATION LIMITED |
Exhibit |
P5 |
TRUE COPY OF BOOKING CACELLATION LETTERISUED BY SMT. RADHA V PILLAI DATED12.22.22013 TO M/S. MOOKAMBIKA HOMESAND APAPRTMENTS PVT. LTD. |
Exhibit |
P6 |
TRUE COPY OF EMAIL PURPORTEDLY ISSUEDM/S. MOOKAMBIKA HOMES AND APAPRTMENTSPVT. LTD. TO KERALA TRANSPORTDEVELOPMENT FINANCE CORPORATION LIMITED |
Exhibit |
P7 |
TRUE COPY OF COMMUNCATION DATED23.01.2021 ISSUED BY TAHSILDAR (LR) TOPETITIONER |
Exhibit |
P8 |
TRUE COPY OF REPRESENTATION SUBMITTEDBY PETITIONER BEFORE DISTRICTCOLELCTOR, THRISSUR |
Exhibit |
P9 |
TRUE COPY OF COMMUNICATION DATED05.01.2022 ISSUED BY THE DISTRICTCOLELCTOR, THRISSUR TO PETIIONER |
2 issues framed by the court
Whether revenue authorities are bound to effect mutation despite pending revenue recovery proceedings under the finance corporation's loan.
Whether the petitioner can compel the finance corporation to issue a corrected lien release certificate when the property remains under attachment.
JOSHY MATHEW
STATE OF KERALA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE
THE DISTRICT COLLECTOR, THRISSUR
TAHSILDAR (LR), CHAVAKKAD
VILLAGE OFFICER, CHAVAKKAD
KERALA TRANSPORT DEVELOPMENT FINANCE CORPORATION LIMITED
V.G. ARUN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
V.G. ARUN
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