{"id":159216,"date":"2009-01-23T00:00:00","date_gmt":"2009-01-22T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/chandramony-vs-ms-s-r-cashews-p-limited-on-23-january-2009"},"modified":"2018-10-05T07:48:00","modified_gmt":"2018-10-05T02:18:00","slug":"chandramony-vs-ms-s-r-cashews-p-limited-on-23-january-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/chandramony-vs-ms-s-r-cashews-p-limited-on-23-january-2009","title":{"rendered":"Chandramony vs M\/S.S.R.Cashews (P) Limited on 23 January, 2009"},"content":{"rendered":"
Kerala High Court<\/div>\n
Chandramony vs M\/S.S.R.Cashews (P) Limited on 23 January, 2009<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWA.No. 2216 of 2007(B)\n\n\n1. CHANDRAMONY, THAVOOT HOUSE,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. M\/S.S.R.CASHEWS (P) LIMITED\n                       ...       Respondent\n\n2. THE ASSISTANT COMMISSIONER (ASSMT)\n\n3. THE TAHSILDAR (REVENUE RECOVERY)\n\n4. THE VILLAGE OFFICER, VADAKKEVILA,\n\n5. THE INDIAN OVERSEAS BANK, KOLLAM.\n\n6. THE DISTRICT COLLECTOR,KOLLAM.\n\n7. STATE OF KERALA, REPRESENTED BY THE\n\n8. P. RAMACHANDRAN, KIRAN STEEL INDUSTRIES\n\n                For Petitioner  :SRI.KRB.KAIMAL (SR.)\n\n                For Respondent  :SRI.ARIKKAT VIJAYAN MENON\n\nThe Hon'ble the Acting Chief Justice MR.J.B.KOSHY\nThe Hon'ble MR. Justice V.GIRI\n\n Dated :23\/01\/2009\n\n O R D E R\n                 J.B. KOSHY, Ag.C.J. &\n                         V.GIRI, J.\n         -------------------------\n                 W.A.No.2216 of 2007,\n            W.P.(C)Nos.9642 & 10045 of 2008\n         -------------------------\n          Dated this the 23th day of January, 2009.\n\n\n                       JUDGMENT\n<\/pre>\n
GIRI, J.\n<\/p>\n<\/p>\n
        The issues involved in these cases are<\/p>\n
connected  and    the     parties      are     also  common.<\/p>\n
Therefore,  they     have     heard     together    and are<\/p>\n
disposed of by this common judgment.<\/p>\n
        2. The 5th respondent in W.P.(C)No.16045\/07<\/p>\n
is the appellant in the writ appeal.               The writ<\/p>\n
petitioners committed default in payment of sales<\/p>\n
tax  arrears  as     also     arrears    due     to the  4th<\/p>\n
respondent bank.       In revenue sale, a property<\/p>\n
belonging to the defaulter firm was purchased by<\/p>\n
the appellant for an amount of Rs.19.90 lakhs.           The<\/p>\n
sale  was  held   on    25.4.2007      and    the  purchaser<\/p>\n
remitted  the   amount       within    the     due  date on<\/p>\n
22.5.2007.  The 8th respondent impleaded in the writ<\/p>\n
petition affirmed before the learned single Judge<\/p>\n
that he has a right to purchase the property for a<\/p>\n
price of Rs.10 lakhs in excess of the price quoted<\/p>\n
by the appellant\/auction purchaser.              The learned<\/p>\n
single Judge had stayed the confirmation of the<\/p>\n
W.A.No.2216 of 2007 & con. cases<\/p>\n
                         :: 2 ::\n<\/p>\n
\nsale and proceeded to pass an order setting aside<\/p>\n
the sale in favour of the 5th respondent, on the<\/p>\n
additional 8th respondent paying to the appellant<\/p>\n
the entire amount in terms of Section 52 of the<\/p>\n
Revenue  Recovery   Act     {for  short  ‘the Act’},<\/p>\n
within a period three weeks from the date of the<\/p>\n
judgment.   There was a further direction to the<\/p>\n
additional 8th respondent to deposit the balance<\/p>\n
amount of the sale price of Rs.29 lakhs before<\/p>\n
the Tahsildar.     The Tahsildar was directed to<\/p>\n
make appropriate appropriations of the amount so<\/p>\n
remitted to the sales tax arrears in the first<\/p>\n
instance and make out the balance to the 4th<\/p>\n
respondent bank.       The bank was permitted to<\/p>\n
proceed against the defaulter for recovery of the<\/p>\n
balance amount.\n<\/p>\n
        3.    The   auction      purchaser  the  5th<\/p>\n
respondent in the writ petition has filed the<\/p>\n
appeal and the Bench proceeded to pass an interim<\/p>\n
stay of further proceedings on 10.9.2007.<\/p>\n
        4. In the meanwhile, taking note of the<\/p>\n
application filed by the defaulter under Section<\/p>\n
53 of the Act in respect of the revenue sale held<\/p>\n
on 25.4.2007, the collector proceeded to pass an<\/p>\n
W.A.No.2216 of 2007 & con. cases<\/p>\n
                         :: 3 ::\n<\/p>\n
\norder on 12.2.2008 setting aside the auction sale<\/p>\n
conducted on 25.4.2007. The collector proceeded<\/p>\n
to note from the files forwarded to him as also<\/p>\n
from the report of the Tahsildar (RR) that a<\/p>\n
valuation of the property which was brought to<\/p>\n
sale is not seen to have been done prior to the<\/p>\n
auction.     Collector    went   on  to express his<\/p>\n
opinion that it is doubtful whether the auction<\/p>\n
process has been conducted impartially and the<\/p>\n
whole proceedings were not transparent.         The<\/p>\n
collector took note of the offer made by the<\/p>\n
additional 8th respondent in W.P.(C)No.16045\/07<\/p>\n
for purchase at Rs.10 lakhs above the price<\/p>\n
quoted by the appellant.\n<\/p>\n
        5. For all those reasons, among others,<\/p>\n
the collector proceeded to set aside the auction<\/p>\n
sale conducted on 25.4.2007 as per Section 53 of<\/p>\n
the Act.   The collector also issued a direction<\/p>\n
to the Tahsildar (RR) to conduct a re-auction.<\/p>\n
This order passed by the Collector has been<\/p>\n
challenged in W.P.(C)No.10045\/08 by the appellant<\/p>\n
in W.A.No.2216\/07, and in W.P.(C)No.9642\/08, by<\/p>\n
the   additional    8th     respondent  in   W.P.(C)<\/p>\n
No.16045\/07.\n<\/p>\n
W.A.No.2216 of 2007 & con. cases<\/p>\n
                         :: 4 ::\n<\/p>\n<\/p>\n
        6. It is necessary to take note of another<\/p>\n
development which took place in the meanwhile.<\/p>\n
The  defaulter,     the     petitioner  in   W.P.(C)<\/p>\n
No.16045\/07 proceeded to discharge the entire<\/p>\n
sales tax arrears due to the Government under the<\/p>\n
amnesty    scheme,     2008.        Thereupon,  the<\/p>\n
requisitioning authority issued a communication<\/p>\n
to the Revenue Recovery authority, to lift the<\/p>\n
attachment on the premise that there are no<\/p>\n
outstanding arrears due from the defaulter.<\/p>\n
        7. We heard learned counsel on both sides.<\/p>\n
        8. The direction issued by the learned<\/p>\n
single Judge in W.P.(C)No.16045\/07 for re-auction<\/p>\n
is not necessary at this stage in circumstances<\/p>\n
where the defaulter had later discharged the<\/p>\n
arrears due to the Government.       Even apart from<\/p>\n
the direction issued by the learned single Judge,<\/p>\n
which is the subject matter of the writ appeal,<\/p>\n
the Collector has proceeded to set aside the<\/p>\n
auction held on 25.4.2007 and set aside the<\/p>\n
proceedings under Section 53 of the Act as per<\/p>\n
the order dated 12.2.2008 impugned in W.P.(C)<\/p>\n
No.9642\/08 and 1004\/08. What now survives for<\/p>\n
consideration is whether any grounds have been<\/p>\n
W.A.No.2216 of 2007 & con. cases<\/p>\n
                         :: 5 ::\n<\/p>\n
\nmade out for interference with the order passed<\/p>\n
by the District Collector.       We have perused the<\/p>\n
order and we take note of the fact that the<\/p>\n
defaulter was prompt in approaching the District<\/p>\n
Collector on 30.4.2007, to set aside the sale<\/p>\n
held on 25.4.2007.    We also take note of the fact<\/p>\n
that the collector has entered a specific finding<\/p>\n
that an evaluation does not seen to have been<\/p>\n
done prior to the auction.      Collector had rightly<\/p>\n
taken note of the fact that a better price was<\/p>\n
reported for the property on an earlier occasion.<\/p>\n
The collector has the jurisdiction to confirm the<\/p>\n
auction or set aside the sale under Section 53 of<\/p>\n
the  Act.   If   the   collector    finds  from  the<\/p>\n
materials available that a better price could<\/p>\n
have   been   obtained     for   the  property,  had<\/p>\n
appropriate steps been taken by the auctioning<\/p>\n
officer in that regard, then he has the power to<\/p>\n
set aside the sale and direct re-auction.     From a<\/p>\n
reading of the order and from the attendant<\/p>\n
circumstances, we find that the Collector has<\/p>\n
exercised his power in a proper and legal manner.<\/p>\n
We also take note of the fact that in the<\/p>\n
meanwhile the defaulter had actually remitted the<\/p>\n
W.A.No.2216 of 2007 & con. cases<\/p>\n
                         :: 6 ::\n<\/p>\n
\namount due to the Government.        Therefore, at any<\/p>\n
rate, it would not be fair to permit a stranger<\/p>\n
auction purchaser to proceed to purchase the<\/p>\n
property or permit another stranger to bid for<\/p>\n
the property.    We find no grounds to interfere<\/p>\n
with the order passed by the District Collector<\/p>\n
on 12.2.2008 setting aside held on 25.4.2007.<\/p>\n
        9. But we take note of the fact that<\/p>\n
auction purchaser namely the appellant has been<\/p>\n
put to certain trouble and as a matter of fact he<\/p>\n
had remitted the amount due within the time<\/p>\n
prescribed.   He has been       deprived of the use of<\/p>\n
the money deposited by him.          In the facts and<\/p>\n
circumstances of the case, we are of the view<\/p>\n
that he is eligible to be compensated.<\/p>\n
        10. Accordingly, we direct the petitioner<\/p>\n
in W.P.(C)No.16045\/07 viz., the 1st respondent in<\/p>\n
the writ appeal, to pay the appellant an amount<\/p>\n
equivalent to interest at the rate 12%, from<\/p>\n
22.5.2007,   on  the    amount     deposited  by   the<\/p>\n
appellant in the auction sale held on 25.4.2007.<\/p>\n
Such amount by way of interest shall be paid<\/p>\n
within two months from today.       The interest shall<\/p>\n
be  payable   from  22.5.2007      till  the  date  of<\/p>\n
W.A.No.2216 of 2007 & con. cases<\/p>\n
                         :: 7 ::\n<\/p>\n
\npayment. The State shall also refund the amount<\/p>\n
deposited by the appellant as the bid amount,<\/p>\n
within two months from today. It is made clear<\/p>\n
that if there is any delay on the part of the<\/p>\n
State in refunding the amount to the appellant,<\/p>\n
the same shall carry interest at the rate of 12%<\/p>\n
from the date on which the refund becomes due<\/p>\n
till the date of payment. In the facts and<\/p>\n
circumstances of the case, we are of the view<\/p>\n
that the 1st respondent in the appeal shall also<\/p>\n
pay an amount of Rs.1 lakh to the appellant, as<\/p>\n
compensation   and  also     to   cover the expenses<\/p>\n
incurred by the appellant. The said amount of<\/p>\n
Rs.1   lakh   shall   also      be  paid within  the<\/p>\n
aforementioned period of two months from today.<\/p>\n
The writ appeal is disposed of, subject to the<\/p>\n
above directions.\n<\/p>\n
        11. For the reasons stated above, W.P.(C)<\/p>\n
No.9642\/08 and 10045\/08 shall stand dismissed,<\/p>\n
subject to the modification that the revenue<\/p>\n
officers shall not proceed with the re-auction of<\/p>\n
the property, on the basis of the direction<\/p>\n
issued by the District Collector.          But, this<\/p>\n
shall be without prejudice to their right to act<\/p>\n
W.A.No.2216 of 2007 & con. cases<\/p>\n
                         :: 8 ::\n<\/p>\n
\nupon a fresh recovery certificate, if any, issued<\/p>\n
by the competent authority.\n<\/p>\n
        Writ appeal and the writ petitions are<\/p>\n
disposed of as above.\n<\/p>\n<\/p>\n
                                        Sd\/-\n<\/p>\n
                                  (J.B. KOSHY)
\n                                 ACTING CHIEF JUSTICE<\/p>\n
                                       Sd\/-\n<\/p>\n
                                     (V.GIRI)
\n                                      JUDGE<\/p>\n
sk\/
\n               \/\/true copy\/\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court Chandramony vs M\/S.S.R.Cashews (P) Limited on 23 January, 2009 IN THE HIGH COURT OF KERALA AT ERNAKULAM WA.No. 2216 of 2007(B) 1. CHANDRAMONY, THAVOOT HOUSE, … Petitioner Vs 1. M\/S.S.R.CASHEWS (P) LIMITED … Respondent 2. THE ASSISTANT COMMISSIONER (ASSMT) 3. THE TAHSILDAR (REVENUE RECOVERY) 4. THE VILLAGE OFFICER, VADAKKEVILA, 5. THE INDIAN […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-159216","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nChandramony vs M\/S.S.R.Cashews (P) Limited on 23 January, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/chandramony-vs-ms-s-r-cashews-p-limited-on-23-january-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chandramony vs M\/S.S.R.Cashews (P) Limited on 23 January, 2009 - 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