IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C) No. 12441 of 2005(F)
1. K.T.ITTYAVIRAH, S/O.THOMAS,
... Petitioner
2. CHACKO THOMAS, S/O.THOMAS,
Vs
1. THE DY. TAHSILDAR-REVENUE RECOVERY,
... Respondent
2. THE ASSISTANT COMMISSIONER (ASSESSMENT),
3. STATE OF KERALA,
4. M/S.FAZIL TRADING CO.RUBBER DEALER,
For Petitioner :SRI.C.M.TOMY
For Respondent :GOVERNMENT PLEADER
The Hon'ble MR. Justice P.R.RAMAN
Dated :19/01/2007
O R D E R
P.R.RAMAN, J.
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W.P.(C) NO. 12441 OF 2005
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Dated this the 19th day of January, 2007
J U D G M E N T
Petitioners were sureties towards sales tax dues from the
4th respondent. They have executed a joint bond as evidenced by
Exhibit R2(a) for an amount of Rs.15,00,000/-. The 4th respondent
committed default in payment of the sales tax dues. Hence
proceedings were initiated against the petitioners for the
realisation of the entire amount of sales tax arrears due from the
4th respondent. Challenging the proceedings, petitioners has
approached this court as movable properties were under
attachment. During the pendency of this writ petition, petitioners
has paid an amount of Rs.10,000/-. Based on the bond executed,
the maximum liability of the petitioners together can only be
Rs.15,00,000/-, less what has been paid, balance will be
Rs.14,90,000/-. The petitioners are prepared to pay the same in
instalments. A counter affidavit is filed in the matter. There is no
dispute that the bond amount is only for an amount of
Rs.15,00,000/-. Therefore the petitioners are well founded in their
contention that no amount in excess of Rs. 15,00,000/- could be
WPC 12441/2005
: 2 :
recovered from them. Hence the proceedings initiated for
amounts in excess of the amount of Rs.15,00,000/- is clearly
illegal.
2. The revenue recovery proceedings as against the
petitioners is quashed. The petitioners shall pay the balance
Rs.14,90,000/- in ten equal monthly instalments commencing
from 15/2/2007 and thereafter on 15th of subsequent months. In
case of default, it will be open to the authorities to proceed to
recover the balance instalment amount in lump by issuing a fresh
notice in that behalf. The movables shall be released on payment
of the first instalment.
The petitioners shall produce a copy of this judgment before
the respondents for compliance.
Writ petition is allowed to the above extent.
P.R.RAMAN, JUDGE
Rp