A writ petition challenged KSFE's revenue recovery proceedings over a chitty liability. KSFE explained auction deductions, rebate disbursement and outstanding dues. The court found no basis for relief but clarified that recovery be limited to Rs.96,754 with accrued interest, then dismissed the petition.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
TUESDAY, THE 16TH DAY OF JANUARY 2024 / 26TH POUSHA, 1945
WP(C) NO. 995 OF 2015
PETITIONER:
DR. SOMASEKHARAN AGED 60 YEARS S/O.K.K.GOPALAN, "DHANWANTHARI MADOM", KURATTUSSERY, MANNAL.P.O., ALAPPUZHA, KERALA STATE. BY ADV. SRI.S.S.RAJESH
RESPONDENTS:
2 THE MANAGING DIRECTOR THE KERALA STATE FINANCIAL ENTERPRISES(KSFE), HEAD OFFICE, "BHADRATHA", P.B.NO.510, MUSEUM ROAD, THRISSUR, KERALA STATE. PIN-682 020.
3 STATE OF KERALA REPRESENTED BY THE FINANCE SECRETARY, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. BY ADVS. SRI.P.V.LONACHAN,SC,KSFE LTD. SRI. P.V.ANOOP SRI.VASUDEVAN T.M., SC, KSFE LTD.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP.(C.)NO.995 OF 2015
2
JUDGMENT
Dated this the 16th day of January, 2024
The petitioner has approached this Court, challenging the revenue recovery proceedings initiated against the petitioner by the Kerala State Financial Enterprises Ltd. (hereinafter referred to as the ‘KSFE’). According to the petitioner, the petitioner had absolutely no liability towards the KSFE and therefore, the initiation of revenue recovery proceedings against the petitioner was bad in law.
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of the KSFE, from the auction deduction amount of Rs.2,37,000/- (Rupees two lakh thirty seven thousand only) and disbursed the balance sum of Rs.1,97,000/(Rupees one lakh ninety seven thousand only) among the 40 subscribers in the chitty at the rate of Rs.4,925/(Rupees four thousand nine hundred twenty five only) each, in the second installment, which included the petitioner. The said amount was disbursed as auction rebate. After remitting the 1st installment, the petitioner had not remit any of the remaining 39 installments.
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account in the name of the petitioner. It is submitted that, after the period of chitty was over, a sum of Rs.1,68,375/- (Rupees one lakh sixty eight thousand three hundred seventy five only) was outstanding from the petitioner and the same was also intimated to the petitioner. The KSFE also issued Annexure-R1(a) letter by registered post to the petitioner, stating that the amount of Rs.5,59,539/- (Rupees five lakh fifty nine thousand five hundred thirty nine only), can be treated as a Fixed Deposit at the rate of 10% interest per annum and the sum of Rs.72,147/- (Rupees seventy two thousand one hundred forty seven only), which was accrued as interest, can be adjusted against the outstanding sum of Rs.1,68,375/- (Rupees one lakh sixty eight thousand three hundred seventy five only). Thus, it is stated that, an amount of Rs.96,754/- (Rupees ninety six thousand seven hundred fifty four only), together with accrued interest is due from the petitioner, though the revenue recovery notices were for the sum of Rs.1,68,271/- (Rupees one lakh sixty eight thousand two
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hundred seventy one only), without giving credit to the amount of interest, accrued on Rs.5,59,539/- (Rupees five lakh fifty nine thousand five hundred thirty nine only), as above.
Subject to the above clarifications, the Writ Petition will stand dismissed.
Sd/-
GOPINATH P.
JUDGE
NB/16-1
WP.(C.)NO.995 OF 2015
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APPENDIX OF WP(C) 995/2015
PETITIONER’S EXHIBITS:
EXHIBIT P1 TRUE COPY OF REGISTERED NOTICE DATED 10.7.2012 SEND BY THE 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE LEGAL NOTICE SENT BY THE PETITIONER TO THE 1ST RESPONDENT. EXHIBIT P3 TRUE COPY OF THE NOTICE DATED 28.06.2014 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P4 TRUE COPY OF THE NOTICE DATED 25.11.2014 BY THE 1ST RESPONDENT TO THE PETITIONER. EXHIBIT P5 TRUE COPY OF THE REPRESENTATION DATED 9.12.2014 SUBMITTED BY THE PETITIONER TO THE 1ST RESPONDENT. RESPONDENTS’ EXHIBITS: ANNEXURE R1 THE TRUE COPY PHOTOCOPY OF THE SAID REPLY DATED 09.12.2014. ANNEXURE R1(a) A TRUE PHOTOSTAT COPY OF THE COMMUNICATION DATED 17.12.2014.
TRUE COPY
P.A. TO JUDGE
2 issues framed by the court
Whether revenue recovery proceedings initiated by KSFE against the petitioner were justified despite his claim of no liability.
To what amount should the recovery under revenue recovery proceedings be restricted, given amounts disbursed and interest accrued to the petitioner's credit?
Dr. Somasekharan
The Manager, KSFE Ranny (Kerala State Financial Enterprises, Ranny Branch)
The Managing Director, Kerala State Financial Enterprises (KSFE)
State of Kerala represented by the Finance Secretary
Gopinath P.
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
