High Court Kerala High Court

C.Khalid vs Kerala State Industrial … on 21 October, 2008

Kerala High Court
C.Khalid vs Kerala State Industrial … on 21 October, 2008
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WA.No. 1994 of 2008()


1. C.KHALID, PALAKKIL MEDICAL
                      ...  Petitioner

                        Vs



1. KERALA STATE INDUSTRIAL DEVELOPMENT
                       ...       Respondent

2. DEPUTY TAHSILDAR(RR), HOSDURG,

3. M/S.KANDCO POLYMERS (P) LTD.,

                For Petitioner  :SRI.SIJI ANTONY

                For Respondent  :SRI.M.PATHROSE MATTHAI (SR.)

The Hon'ble the Chief Justice MR.H.L.DATTU
The Hon'ble MR. Justice A.K.BASHEER

 Dated :21/10/2008

 O R D E R
               H.L.DATTU, C.J. & A.K.BASHEER, J.
               -----------------------------------------------------
                          W.A.No.1994 of 2008-E
                   ----------------------------------------------
                Dated, this the 21st day of October, 2008

                                 JUDGMENT

H.L.Dattu, C.J.

This writ appeal is directed against the orders passed by

the learned Single Judge in W.P.(C) No.3658 of 2008 dated 21st May,

2008.

2. This is the third round of litigation by the petitioner and

in the earlier two occasions he had called in question the revenue

recovery proceedings initiated by the respondents for recovery of the

amounts due to them. Those writ petitions came to be withdrawn by the

petitioner without seeking permission of this Court to approach this

Court, if need arises in future.

3. In the third round of litigation the petitioner once over

again calls in question the legality or otherwise of the revenue recovery

proceedings initiated by the respondents for realisation of the amounts

due to them.

4. The primary contention that was canvassed before the

learned Single Judge was that the petitioner was only a Director and he

ceased to be the Director some time in the year 1997, and, therefore, no

W.A.No.1994/2008 -2-

proceedings could have been taken by the respondents against him.

5. Respondents had brought to the notice of the learned

Single Judge that the petitioner was not just the Director of the

Company, but also had offered personal guarantee at the time of

disbursement of the loan by the first respondent financial institution to

the Company.

6. By the revenue recovery proceedings, respondents are

trying to enforce the personal guarantee that was offered by the

petitioner. Keeping this aspect of the matter in view, the learned Single

Judge has rightly rejected the writ petition.

7. Learned counsel appearing for the appellant has brought

to our notice the observations made by the Apex Court in the case of

Pawan Kumar Jain Vs. Pradeshiya Industrial and Investment

Corporation of U.P.Ltd. and Others { (2004) 6 SCC 758}. In the said

decision the Apex Court was considering the provisions of U.P.Act and

while doing so, the learned Judges have observed that, in view of the

statutory provisions prevailing in the U.P.Act, the financial institutions

should first proceed against the principal debtor and it is only thereafter

should proceed against the guarantor.

8. Learned counsel appearing for the appellant is not in a

W.A.No.1994/2008 -3-

position to tell us whether the provisions of the Revenue Recovery

proceedings is in pari materia with the provisions of the U.P.Act, and,

therefore, in our opinion, the decision of the Apex Court would not

come to the aid of the appellant.

9. In view of the above, the writ appeal requires to be

rejected and it is rejected.

Ordered accordingly.

(H.L.DATTU)
CHIEF JUSTICE

(A.K.BASHEER)
JUDGE

MS