IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 21662 of 2008(D)
1. JOSE G., S/O GREGORI,
... Petitioner
Vs
1. THE KERALA FINANCIAL CORPORATION,
... Respondent
2. CHIEF MANAGER,
For Petitioner :SRI.P.KESAVAN NAIR
For Respondent :SRI.M.M.SAYED MUHAMMED, SC, KFC
The Hon'ble MR. Justice S.SIRI JAGAN
Dated :01/09/2008
O R D E R
S. SIRI JAGAN, J.
------------------------------------
W.P.(C)No.21662 OF 2008
----------------------------------------
Dated this the 1st day of September, 2008
JUDGMENT
The petitioner availed of a loan from the 1st respondent
Kerala Financial Corporation. He defaulted repayment of the
same. The KFC initiated revenue recovery proceedings.
Thereafter, the petitioner availed benefit of One Time Settlement
Scheme and repaid the entire amounts due. The petitioner’s
grievance in this writ petition is that in spite of clearing of the
entire dues, the KFC is not releasing the security documents
demanding collection charges also. The petitioner submits that in
so far as the petitioner has paid the amount directly to the KFC
without intervention of the revenue authorities he is not liable to
pay any collection charges. The petitioner also relies on the
decision of this Court in Bhaskaran V. Sub Registrar [2005(3)
KLT 150].
2. I have heard the learned counsel for the KFC as well
as the learned Government Pleader appearing for the 3rd
W.P.(c)No.21662/08 2
respondent. The learned Government Pleader on instructions
submits that apart from issuing notice under Sections 7 and 34
of the Kerala Revenue Recovery Act, no further steps have
been taken by the revenue authorities in this regard.
3. In the above circumstances, I am satisfied that the
dictum laid down in Bhaskaran’s case squarely applies to the
facts of this case. However, the learned Standing Counsel for
the KFC submits that in view of the recent amendment to the
Kerala Revenue Recovery Act, the revenue authorities may
insist on the KFC paying the collection charges. I am of
opinion that once the defaulter is not liable to pay collection
charges, the collection charges cannot be realised from the
Requisitioning Authority also. That being so, the revenue
authorities cannot realise collection charges from the 1st
respondent also.
Accordingly, the writ petition is disposed of declaring that
the petitioner is not liable to pay any collection charges in this
matter and directing respondents 1 and 2 to release the
security documents, if all other amounts other than collection
W.P.(c)No.21662/08 3
charges have been fully paid off. This shall be done within a
period of two weeks from the date of receipt of a copy of this
judgment.
S. SIRI JAGAN, JUDGE
Acd
W.P.(c)No.21662/08 4