Swadiya Foods vs State Of Kerala
2021 Latest Caselaw 13366 Ker

         IN THE HIGH COURT OF KERALA AT ERNAKULAM
                          PRESENT
        THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR
   MONDAY, THE 28TH DAY OF JUNE 2021 / 7TH ASHADHA, 1943
                  WP(C) NO. 12755 OF 2021
PETITIONER:

         M/S.SWADIYA FOODS REPRESENTED BY MANAGING PARTNER
         ARAVINDAKSHAN K, S/O.K.V.KRISHNAN, 58 YEARS
         CHOORAL, OYOLAM, P O ERAMAM, KANNUR DISTRICT
         670307

         BY ADVS.
         M.M.ANTO
         GEORGE MATHEWS


RESPONDENTS:

        1 STATE OF KERALA REPRESENTED BY CHIEF SECRETARY,
          SECRETARIAT, THIRUVANANTHAPURAM 695 001

        2 THE DISTRICT COLLECTOR, KANNUR,
          COLLECTORATE, THAVAKKARA, KANNUR, PIN 670002

        3 THE CHAIRMAN AND MANAGING DIRECTOR,
          KERALA FINANCIAL CORPORATION, VELLAYAMBALAM,
          THIRUVANANTHAPURAM 695 003

        4 THE BRANCH MANAGER,
          KERALA FINANCIAL CORPORATION, CHANDROTH COMPLEX
          NETAJI ROAD, KANNUR 670 001

        5 THE DEPUTY TAHSILDAR,
          REVENUE RECOVERY, KERALA FINANCIAL CORPORATION,
          GH ROAD, MUTHALAKULAM, KOZHIKODE 673 001

         BY ADV. SMT.PRINCY XAVIER, GP



THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
28.06.2021, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
 WP(C) NO. 12755 OF 2021

                                      2




                       W.P.(C) No.12755 of 2021
                -----------------------------------------------


                             JUDGMENT

Petitioner has availed a loan from the Kerala Financial

Corporation (the Corporation) for establishing a chicken

processing plant. It is stated that since the petitioner could not

operate the plant profitably, the unit was sold by the petitioner

after settling the liability of the Corporation. It is alleged that

despite settlement of the liability, the Corporation is not

recalling the revenue recovery proceedings initiated earlier for

realisation of the outstanding liability in the loan account. The

petitioner, therefore, seeks appropriate directions in this regard

in the writ petition.

2. Heard the learned counsel for the petitioner, the

learned Government Pleader as also the learned Standing

Counsel for the Corporation.

3. The learned Standing Counsel for the

Corporation submits that since proceedings under the Revenue

Recovery Act have been initiated prior to the liquidation of the

liability and demand notice has been issued under the Revenue WP(C) NO. 12755 OF 2021

Recovery Act to the petitioner in the said proceedings, the

petitioner is bound to pay recovery charges also to the

authorities under the Revenue Recovery Act and it is since the

petitioner has not paid the recovery charges that the

proceedings under the Revenue Recovery Act have so far not

been recalled.

4. On a query from the Court, the learned Standing

Counsel for the Corporation conceded that since no steps other

than issuance of the demand notice has been taken by the

authorities under the Revenue Recovery Act, the petitioner is

liable to pay only 1% of the amount demanded from them

towards recovery charges.

5. The learned counsel for the petitioner submitted

that the petitioner is prepared to pay 1% of the amount

demanded towards recovery charges.

In the circumstances, the writ petition is disposed of

directing the petitioner to pay 1% of the amount demanded by

the authorities under the Revenue Recovery Act by way of

recovery charges directly to the fifth respondent, and directing

respondents 3 and 4 to recall the revenue recovery proceedings

initiated against the petitioner immediately on production of

receipt evidencing payment of the recovery charges as directed WP(C) NO. 12755 OF 2021

above. Needless to say, the Corporation shall also thereupon

release the title deeds and other documents of the petitioner

which have been furnished by way of security, without delay.

Sd/-

P.B.SURESH KUMAR JUDGE YKB WP(C) NO. 12755 OF 2021

APPENDIX OF WP(C) 12755/2021

PETITIONER ANNEXURE

Exhibit P1 TRUE COPY OF ACKNOWLEDGEMENT OF REGISTRATION OF FIRMS DATED 09.08.2016.

Exhibit P2 TRUE COPY OF THE PROVISIONAL STATEMENT OF ACCOUNT OF THE LOAN FOR THE PERIOD 01.01.2016 TO 12.05.2021

Exhibit P3 TRUE COPY OF THE ACKNOWLEDGEMENT FOR TRANSFER OF RS.25 LAKHS TO THE LOAN DATED 09.12.2020

Exhibit P4 TRUE COPY OF THE LETTER RECEIVED FROM TEH 4TH RESPONDENT DATED 05.01.2021

Exhibit P5 TRUE COPY OF THE LETTER TO THE 3RD RESPONDENT DATED 11.01.2021

Exhibit P6 TRUE COPY OF THE FORM 1 RR DEMAND NOTICE DATED 28.01.2021

Exhibit P7 TRUE COPY OF FORM 10 RR DEMAND NOTICE DATED 28.01.2021

Exhibit P8 TRUE COPY OF THE MESSAGE FROM RESPONDENT NO.4 DATED 11.05.2021

Exhibit P9 TRUE COPY OF THE LETTER SENT TO THE 2ND RESPONDENT DATED 15.05.2021.

Exhibit P10 TRUE COPY OF THE LAWYER NOTICE SENT TO TEH RESPONDENTS DATED 25.05.2021.