Kerala Financial Corporation vs M/S.Alwaye Fertilizers ...
2023 Latest Caselaw 5409 Ker

                 A.MUHAMED MUSTAQUE , J.
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Co. Pet. No. 11 of 2001 & Co.Appl. Nos. 569/2004, 456/2005,
    457/2005, 381/2006, 153/2009 & R.P. No.1218/2008
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            Dated this the 26th day of April, 2023

                             ORDER

These company applications and petitions are pending for a

long time. After hearing both Counsels this Court is of the view that

these matters can be disposed of with the certain directions. These

matters are pertaining to Alwaye Fertilizers Industries Ltd. One of

the issues now remaining to be resolved is in regard to the sale of

the plant and machineries of the company, invoking revenue

revenue recovery proceedings, for the amount due to KFC. The sale

has been set aside noting that the sale was conducted beyond 30

days. The auction purchaser now demands refund of the amount

deposited.

2. The learned Standing Counsel for KFC submits that

revenue recovery commission will have to be paid by the auction

purchaser. It is further stated that certain machineries and plants

have been removed by the auction purchaser based on the sale

and they can only demand balance of the amount after defraying

the cost of machineries and plant removed by the auction

purchaser. The learned Counsel for the company submits that the

experts had valued the machineries and plant. Co. Pet. No. 11 of 2001 & Co.Appl. Nos. 569/2004, 456/2005, 457/2005, 381/2006, 153/2009 & R.P. No.1218/2008

3. That be so, there is no difficulty for the KFC to pay the

balance amount after defraying the cost of the plant and

machineries removed by the auction purchaser. The valuation

report is on board in CA. No.625/2004. The KFC can obtain that

valuation report from the Registry.

4. In regard to commission charge payable to the revenue

authorities, I am of the view that no commission charge is payable

to revenue authority for conducting sale beyond 30 days which is

found to be illegal by this Court.

5. KFC shall take a decision after adverting to the expert

valuation report within a period of six weeks from the date of

receipt of a copy of this judgment and refund whatever amount due

to the auction purchaser without any delay. If the auction purchaser

is aggrieved by such decision of the KFC, auction purchaser is given

liberty to challenge the same in accordance with law.

6. In view of the fact that the loanee company has settled

the entire dues to all the financial institutions, the title deeds and

any other documents shall be returned to loanee without any delay.

7. The review petition filed by KFC to review the order

setting aside the sale, according to me is unsustainable in as much

as the sale is found to be illegal in accordance with the provisions Co. Pet. No. 11 of 2001 & Co.Appl. Nos. 569/2004, 456/2005, 457/2005, 381/2006, 153/2009 & R.P. No.1218/2008

of Revenue Recovery Act, it is admittedly conducted after a period

of 30 days. It is accordingly dismissed.

All the company petitions and applications are disposed of as

above.

Sd/-

A.MUHAMED MUSTAQUE JUDGE sbk/-