{"id":54393,"date":"2008-09-05T00:00:00","date_gmt":"2008-09-04T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/state-bank-of-travancore-vs-the-tahsildar-revenue-recovery-on-5-september-2008"},"modified":"2017-04-12T14:41:20","modified_gmt":"2017-04-12T09:11:20","slug":"state-bank-of-travancore-vs-the-tahsildar-revenue-recovery-on-5-september-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/state-bank-of-travancore-vs-the-tahsildar-revenue-recovery-on-5-september-2008","title":{"rendered":"State Bank Of Travancore vs The Tahsildar (Revenue Recovery) on 5 September, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">State Bank Of Travancore vs The Tahsildar (Revenue Recovery) on 5 September, 2008<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 29703 of 2004(J)\n\n\n1. STATE BANK OF TRAVANCORE, PERUMANOOR\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. THE TAHSILDAR (REVENUE RECOVERY)\n                       ...       Respondent\n\n2. GOPALAN NAIR, PROPRIETOR,\n\n3. DEBT RECOVERY TRIBUNAL, ERNAKULAM\n\n                For Petitioner  :SRI.M.PATHROSE MATTHAI (SR.)\n\n                For Respondent  :SRI.THOMAS MATHEW NELLIMOOTTIL\n\nThe Hon'ble MR. Justice K.BALAKRISHNAN NAIR\nThe Hon'ble MRS. Justice M.C.HARI RANI\n\n Dated :05\/09\/2008\n\n O R D E R\n       K. BALAKRISHNAN NAIR &amp; M.C. HARI RANI,JJ\n\n         ==============================\n\n                   W.P.(C)NO. 29703 OF 2004\n\n           ============================\n\n      DATED THIS THE 5TH DAY OF SEPTEMBER 2008\n\n                             JUDGMENT\n<\/pre>\n<p>Balakrishnan Nair,J.\n<\/p>\n<p>      The petitioner is the State Bank of Travancore. This writ<\/p>\n<p>petition is filed by it challenging Ext.P5 notice issued by the first<\/p>\n<p>respondent, Revenue Recovery Tahsildar proposing to sell an<\/p>\n<p>item of property mentioned in the schedule to that notice in<\/p>\n<p>public auction under the provisions of the Revenue Recovery Act<\/p>\n<p>to recover the     sales tax dues to the State.      The petitioner<\/p>\n<p>submits that the said property was already mortgaged to the<\/p>\n<p>Bank as early as on 21-9-1994 as a security for a loan availed of<\/p>\n<p>by the second respondent. Since the second respondent loanee<\/p>\n<p>has defaulted, the Bank moved the Debt Recovery Tribunal and<\/p>\n<p>obtained a decree for an amount of Rs.35,63,277,85 with future<\/p>\n<p>interest at the rate of 9% per annum till realization. When the<\/p>\n<p>recovery officer of the Debt Recovery Tribunal took steps to sell<\/p>\n<p><span class=\"hidden_text\">WPC. 29703\/2004                  -2-<\/span><\/p>\n<p>the property by issuing the sale proclamation,            the first<\/p>\n<p>respondent recovery Tahsildar issued Ext.P5 notice. The State<\/p>\n<p>claims sales tax dues from 1994, which at present, will come to<\/p>\n<p>about rupees one crore and twenty four lakhs. On the strength<\/p>\n<p>of Section 26 B of the K.G.S.T.Act the State claims precedence<\/p>\n<p>over other creditors. The point raised by the State is covered in<\/p>\n<p>its favour by the Divison Bench of this court in <a href=\"\/doc\/599564\/\">Sherry Jacob v.<\/p>\n<p>Canara Bank,<\/a> 2004(3)K.L.T.1089. We are inclined to follow<\/p>\n<p>that decision. But the learned counsel for the petitioner points<\/p>\n<p>out that the said decision has been taken in appeal before the<\/p>\n<p>Supreme Court and the matter is pending there. So ultimately if<\/p>\n<p>the Apex court holds in favour of the Bank, appropriate<\/p>\n<p>safeguards may be provided in the judgment enabling the<\/p>\n<p>petitioner to pursue its claim against the State.     The learned<\/p>\n<p>Special Government Pleader for the revenue submitted that the<\/p>\n<p>sale took place         in February 2008 for an amount of<\/p>\n<p>Rs.80,36,666\/-. But in view of the interim order of this Court in<\/p>\n<p>this writ petition, the sale has not been confirmed. It is not clear<\/p>\n<p><span class=\"hidden_text\">WPC. 29703\/2004                 -3-<\/span><\/p>\n<p>from the materials on record whether the Bank has been served<\/p>\n<p>with notice regarding the above-said sale as per the direction of<\/p>\n<p>this Court in another case and a circular issued by the State<\/p>\n<p>Government pursuant to that judgment. The Bank is entitled to<\/p>\n<p>get notice regarding the sale, so that it can also participate in it<\/p>\n<p>and ensure that the property is sold at reasonable price.<\/p>\n<p>     2. After going through the decision of this Court in Sherry<\/p>\n<p>Jacob&#8217;s case (supra), we are inclined to          follow the same.<\/p>\n<p>Accordingly, the writ petition is liable to be dismissed. But it is<\/p>\n<p>made clear that if the Apex court holds in favour of the Bank<\/p>\n<p>reversing the decision of    this Court in Sherry Jacob&#8217;s case<\/p>\n<p>(supra), this judgment will not stand in the way of the petitioner<\/p>\n<p>proceeding against the State to recover the amount due to it<\/p>\n<p>subject to a maximum of the amount received by the State<\/p>\n<p>pursuant to the revenue sale.       In view of this judgment, the<\/p>\n<p>competent authority will take up the question of confirmation of<\/p>\n<p>the sale.     While the matter is considered,     notice should be<\/p>\n<p>issued to the Bank and it shall be afforded an opportunity of<\/p>\n<p><span class=\"hidden_text\">WPC. 29703\/2004                -4-<\/span><\/p>\n<p>being heard. If the Bank feels that the sale has not been made<\/p>\n<p>at the market rate, it can raise its objection and if it is over-<\/p>\n<p>ruled, it can pursue its remedy against it. Subject to the above<\/p>\n<p>rights reserved in favour of the petitioner, the writ petition is<\/p>\n<p>dismissed.\n<\/p>\n<p>                                           Sd\/-\n<\/p>\n<p>                               K. BALAKRISHNAN NAIR,<br \/>\n                                           JUDGE<\/p>\n<p>                                           Sd\/-<\/p>\n<pre>\n                                     M.C. HARI RANI\n                                           JUDGE\n\n\nks.                        TRUE COPY\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court State Bank Of Travancore vs The Tahsildar (Revenue Recovery) on 5 September, 2008 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 29703 of 2004(J) 1. STATE BANK OF TRAVANCORE, PERUMANOOR &#8230; Petitioner Vs 1. THE TAHSILDAR (REVENUE RECOVERY) &#8230; Respondent 2. GOPALAN NAIR, PROPRIETOR, 3. DEBT RECOVERY TRIBUNAL, ERNAKULAM For Petitioner [&hellip;]<\/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-54393","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>State Bank Of Travancore vs The Tahsildar (Revenue Recovery) on 5 September, 2008 - Free Judgements of Supreme Court &amp; 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\/state-bank-of-travancore-vs-the-tahsildar-revenue-recovery-on-5-september-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"State Bank Of Travancore vs The Tahsildar (Revenue Recovery) on 5 September, 2008 - Free Judgements of Supreme Court &amp; 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