Dismissed

Merero Hotels and Resorts Private Limited v. State of Kerala

Kerala HC5 Apr 2024WP(C)/32831/2018

Case brief

AI extract

What is this about?

A company sought refund of revenue recovery commission and GST paid under a one-time loan settlement with the Kerala Financial Corporation while revenue recovery proceedings were pending. The court held the petitioner had voluntarily agreed to pay the commission under the settlement terms and dismissed the writ petition.

What did the court decide?

None granted; prayer for refund of revenue recovery commission and GST declined.

Merero Hotels and Resorts Private Limited Vs State of… — Banking and Recovery | Kerala HC (2024)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE EASWARAN S.

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FRIDAY, THE 5TH DAY OF APRIL 2024 / 16TH CHAITHRA, 1946

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WP(C) NO. 32831 OF 2018

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PETITIONER:

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M/S MERERO HOTELS AND RESORTS PRIVATE LIMITED
A COMPANY INCORPORATED UNDER THE PROVISIONS OF INDIAN
COMPANIES ACT, REPRESENTED BY ITS MANAGING DIRECTOR,
SMT.MERIN JOSE, MATHEW VIHAR, KOONAMTHAI,
EDAPPALLY P.O, KOCHI-24.

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BY ADV
V.M.KRISHNAKUMAR

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RESPONDENTS:

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1 STATE OF KERALA REPRESENTED BY ITS SECRETARY, FINANCE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM, PIN 695001.

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2 THE DEPUTY TAHSILDAR (RR), KERALA FINANCIAL CORPORATION, ERNAKULAM, KALOOR, KOCHI PIN 682017

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3 THE KERALA FINANCIAL CORPORATION, BRANCH OFFICE, FINANCE TOWER, KALOOR, KOCHI-682017, REPRESENTED BY ITS CHIEF MANAGER.

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4 THE KERALA FINANCIAL CORPORATION, VELLAYAMBALAM, THIRUVANANTHAPURAM, PIN 695033. REPRESENTED BY ITS MANAGING DIRECTOR.

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BY ADVS.

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BIMAL K.NATH, SR.GOVERNMENT PLEADER
M.R.VENUGOPAL
DHANYA P.ASHOKAN

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON

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05.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 32831 OF 2018 -2-

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JUDGMENT

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The present writ petition is filed seeking for a writ of mandamus directing the first and third respondents to refund an amount of Rs.17,26,150/- (Rupees Seventeen lakh twenty six thousand one hundred and fifty only) and Rs.3,10,680/- (Rupees Three lakh ten thousand six hundred and eighty only) paid respectively towards the revenue recovery commission and GST.

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Admittedly by Ext.P1 the petitioner was offered a settlement by the Kerala Financial Corporation under a one time settlement scheme. The facts are not disputed that the petitioner paid the aforesaid amount and closed the loan account with Kerala Financial Corporation. While the one time settlement was offered, admittedly the petitioner was under revenue recovery proceedings at the instance of Kerala Financial Corporation.

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The learned counsel for the petitioner relies on the decision of the Division Bench of this Court in

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WP(C) NO. 32831 OF 2018 -3-

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Deputy Tahsildar and Another Vs. Vijaya Builders

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and Others (2016 (1) KHC 897 ) to contend that the petitioner is not liable to pay 1% of the RR commission when the claim is settled directly with the financial institution. The learned Senior Counsel Smt.Dhanya P. Ashokan as instructed by Sri.M.R.Venugopal takes this Court through another Division Bench judgment in

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Deputy Collector (RR) and Others v. Appu Jose (2017 KHC 2715) wherein Kerala Revenue Recovery Rules, 1968 was considered. She also points out that Rule 5 of the Kerala Revenue Recovery Rules, 1968 was not considered by the judgment of the Division Bench referred to supra. She also refers to a judgment rendered by this Court in Ali Haji K.C. Vs. District Collector, Wayanad (2023 (1) KHC 552 ).

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On the consideration of the contentions raised across the bar, I find that the petitioner had paid voluntarily the 1% of the commission which comes to

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WP(C) NO. 32831 OF 2018 -4-

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Rs.17,26,150/- (Rupees Seventeen lakh twenty six thousand one hundred and fifty only). Rs.150/- (Rupees One hundred and fifty only) is referable to the notice charges. In so far as the claim of the petitioner for refund of GST is concerned, I am afraid that this Court cannot direct the Kerala Financial Corporation to refund the said amount because it falls for the revenue recovery charges and it is paid to GST Board and the same is clarified by the learned Senior Counsel.

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Admittedly, the revenue recovery proceedings were pending when the one time settlement was offered by the Kerala Financial Corporation. Therefore, the parties were obliged to pay 1% of the revenue recovery charges to the revenue authorities pursuant to the settlement. At any rate, I find that the petitioner has agreed to that while accepting the terms and conditions of one time settlement. Therefore, the petitioner cannot later turn around and contend that 1% of the RR charges has to be

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WP(C) NO. 32831 OF 2018 -5-

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excluded. Therefore, the prayer for refund is liable to be declined. Accordingly, this writ petition is dismissed.

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Sd/-

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EASWARAN S.
 JUDGE

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vv

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WP(C) NO. 32831 OF 2018 -6-

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APPENDIX OF WP(C) 32831/2018

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PETITIONER EXHIBITS

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EXHIBIT P1TRUE COPY OF THE LETTER ISSUED BY THE
KERALA FINANCIAL CORPORATION DATED
13.8.2018
EXHIBIT P2A COPY OF THE REPRESENTATION SUBMITTED
BY THE PETITIONER DATED 24.3.2018

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EXHIBIT P3TRUE COPY OF THE LETTER ISSUED BY THE
3RD RESPONDENT TO THE PETITIONER DATED
27.3.2018
EXHIBIT P4TRUE COPY OF THE DEMAND DRAFT DATED
16.8.2018 ISSUED FOR THE REMITTANCE OF
RS 17,26,150/-
EXHIBIT P5TRUE COPY OF THE DEMAND DRAFT DATED
16.8.2018 ISSUED FOR THE REMITTANCE OF
RS,3,10,680/-
EXHIBIT P6TRUE COPY OF THE JUDGMENT REPORTED IN
2016(1) KHC 897

Merero Hotels and Resorts Private Limited v. State of Kerala

Case brief

What is this about?

What did the court decide?

Merero Hotels and Resorts Private Limited v. State of Kerala

Case brief

What is this about?

What did the court decide?

What the court decided

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