{"id":64441,"date":"2007-01-09T00:00:00","date_gmt":"2007-01-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/syndicate-bank-vs-s-s-sheriff-on-9-january-2007"},"modified":"2014-11-13T19:48:40","modified_gmt":"2014-11-13T14:18:40","slug":"syndicate-bank-vs-s-s-sheriff-on-9-january-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/syndicate-bank-vs-s-s-sheriff-on-9-january-2007","title":{"rendered":"Syndicate Bank vs S.S.Sheriff on 9 January, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">Syndicate Bank vs S.S.Sheriff on 9 January, 2007<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWA No. 1237 of 2005()\n\n\n1. SYNDICATE BANK, PUNALUR BRANCH,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. S.S.SHERIFF, S\/O.A.S.RAWTHER,\n                       ...       Respondent\n\n2. STATE OF ERALA, REP. BY THE SECRETARY\n\n3. DISTRICT COLLECTOR, COLLECTORATE,\n\n4. TAHSILDAR (RR), PATHANAPURAM TALUK,\n\n                For Petitioner  :SRI.R.S.KALKURA\n\n                For Respondent  :GOVERNMENT PLEADER\n\nThe Hon'ble the Chief Justice MR.V.K.BALI\nThe Hon'ble MR. Justice M.RAMACHANDRAN\n\n Dated :09\/01\/2007\n\n O R D E R\n                    (V.K.BALI, C.J &amp;  M.RAMACHANDRAN, J)\n\n             ----------------------------------------------------------------\n\n\n                             W.A.No. 1237 of 2005\n\n\n         -----------------------------------------------------------------\n\n                Dated this the         day of January, 2007\n\n\n                                    JUDGMENT\n<\/pre>\n<p>Ramachandran, J:\n<\/p>\n<p>       A   public   sector   bank   has   come   up   in   appeal   feeling<\/p>\n<p>aggrieved   about   the   judgment   dated   07-01-2005   rendered<\/p>\n<p>in   O.P.No.5184   of  2001.     The   bank  was  the   4th  respondent<\/p>\n<p>therein,   and   had   advanced   a   loan   to   the   petitioner   in   the<\/p>\n<p>Original   Petition   (Ist   respondent   herein).     When   the<\/p>\n<p>repayment   was   not   forthcoming,   they   had   filed   a   suit   and<\/p>\n<p>obtained   a   decree   on   20-05-1989.     E.P.No.95   of   1991<\/p>\n<p>thereafter   had   been   filed   and   it   is   pending   before   the   Sub<\/p>\n<p>Court,   Kottarakkara.     Revenue   recovery   proceedings   were<\/p>\n<p>initiated   against   the   petitioner   thereafter.     A   copy   of   the<\/p>\n<p>notice issued in the year 2001 shows the amount of arrears<\/p>\n<p>as Rs.3,44,021\/-, which is produced as Ext.P2.\n<\/p>\n<p>       2.          Such   proceedings   had   been   subjected   to<\/p>\n<p>challenge by the petitioner, contending that after obtaining<\/p>\n<p>a decree it was impermissible to proceed with fresh steps of<\/p>\n<p>[WA No.1237 of 2005]<\/p>\n<p><span class=\"hidden_text\">                                       -2-<\/span><\/p>\n<p>revenue recovery.  It was also argued that the bank loan was<\/p>\n<p>time barred to be recovered under the Revenue Recovery Act<\/p>\n<p>and therefore the proceedings were to be interdicted.\n<\/p>\n<p>       3.      Adverting   to   the   judgment   in  <a href=\"\/doc\/52295\/\">State   Bank   of<\/p>\n<p>India  v.  Kuttappan<\/a>   [1998 (20 KLT 130], the learned single<\/p>\n<p>Judge   held   that   recovery   of   amounts   under   the   Revenue<\/p>\n<p>Recovery Act would be permissible as the words &#8220;on account<\/p>\n<p>of   loan   advanced&#8221;   would   take   in   the   amount   due   under   the<\/p>\n<p>decree   obtained   on   the   basis   of   that   loan.     Therefore,   there<\/p>\n<p>was   no   question   of   limitation.     However,   the   learned   Judge<\/p>\n<p>relying   on   the   judgment   in          <a href=\"\/doc\/1697343\/\">Andhra   Pradesh   State<\/p>\n<p>Financial   Corporation  v.  M\/s.Gar   Re-Rolling   Mills   and<\/a><\/p>\n<p>another  [AIR  1994  SC 2151],   held  that since   a  decree  had<\/p>\n<p>been obtained, it would have been incompetent for the Bank<\/p>\n<p>to   proceed   simultaneously   with   Revenue   Recovery<\/p>\n<p>proceedings.     It  was  suggested  that   it   would   be  open   to   the<\/p>\n<p>Bank   either   to   withdraw   the   Execution   Petition   under   the<\/p>\n<p>Revenue  Recovery   Act   or   to   give   up   the   revenue   recovery<\/p>\n<p>proceedings   until   the   execution   proceedings   are   terminated.\n<\/p>\n<p>[WA No.1237 of 2005]<\/p>\n<p><span class=\"hidden_text\">                                       -3-<\/span><\/p>\n<p>This, the appellant submits, laid the Bank in deep trouble, and<\/p>\n<p>an interpretation of the provisions do not justify the dictum.\n<\/p>\n<p>       4.      Mr.R.S.Kalkuara,   appearing   on   behalf   of   the<\/p>\n<p>appellant&#8211;Bank   submits   that   in   Kuttappan&#8217;s   case   (cited<\/p>\n<p>supra), the same issue had come up for consideration and the<\/p>\n<p>learned   Judge   at   that   time   had   also   noticed   the   presence   of<\/p>\n<p>the   Supreme   Court   judgment   in   Andhra   Pradesh   State<\/p>\n<p>Financial   Corporation&#8217;s   case,   but   was   of   the   view   that   since<\/p>\n<p>the point is covered by a Full Bench decision of this Court in<\/p>\n<p><a href=\"\/doc\/1122716\/\">Kerala   Fisheries   Corporation  v.  P.S.John<\/a>  [1996   (1)   KLT<\/p>\n<p>814], the objection  made  on such lines would not have been<\/p>\n<p>sustainable.     According   to   him,   the   learned   Judge   erred   in<\/p>\n<p>sidelining   the   decision   of   the   Kerala   High   Court   and   had<\/p>\n<p>sought   to   rely   on   a   Supreme   Court   judgment,   which   dealt<\/p>\n<p>with an altogether different legal proposition.\n<\/p>\n<p>       5.      Mr.Kalkura submits that the Supreme Court was<\/p>\n<p>examining   an   issue   concerning   the   State   Financial<\/p>\n<p>Corporations   Act,   and   specifically  advertence  was   made   to<\/p>\n<p>Sections 29 and 31 of the  said Act.   Analysing Section 29 of<\/p>\n<p>[WA No.1237 of 2005]<\/p>\n<p><span class=\"hidden_text\">                                        -4-<\/span><\/p>\n<p>the Act, the Supreme Court had held that it spoke about   the<\/p>\n<p>Corporation&#8217;s   right   to   take   over   the   management   or<\/p>\n<p>possession   of   a   defaulting   industrial   concern.     Section   31   of<\/p>\n<p>the Act authorised  Corporations to apply to the District Judge<\/p>\n<p>for sale of the property pledged or mortgaged with them and<\/p>\n<p>for applying for interim injunctions restraining the industrial<\/p>\n<p>concern   from   transferring   or   removing   its   machinery.     The<\/p>\n<p>court   was   also   examining   the   scope   and   impact   of   the<\/p>\n<p>expression &#8220;without prejudice&#8221;, as appeared in Section 31 of<\/p>\n<p>the Act, and had indicated that the reach and scope of the two<\/p>\n<p>remedies  were  essentially  different.    Counsel   submits that  it<\/p>\n<p>is   not   the   case   here,   as   the   defaulter   was   a   decree   debtor.\n<\/p>\n<p>The decree required to be executed in a time frame given.  No<\/p>\n<p>funds   were   forthcoming   and   for   efficacious   recoveries   there<\/p>\n<p>could   not   have   been   any   bar   for   resorting   to   the   remedies<\/p>\n<p>provided   under   the   Revenue   Recovery   Act.                    He   had<\/p>\n<p>highlighted   the   observations   made   in   Kuttappan&#8217;s   case   that<\/p>\n<p>the   Revenue   Recovery   Act   enables   recovery   of   amounts   in<\/p>\n<p>public   interest.     The   intention   obviously   was   to   quicken   the<\/p>\n<p>[WA No.1237 of 2005]<\/p>\n<p><span class=\"hidden_text\">                                      -5-<\/span><\/p>\n<p>process of recovery, so that amounts will be available to the<\/p>\n<p>Bank for grant of fresh loans to the needy.   Therefore, it was<\/p>\n<p>not   possible   to   hold   that   the   two   remedies   were   mutually<\/p>\n<p>exclusive.   There was no detriment, he submits, or scope for<\/p>\n<p>objection   as   available   to   a     judgment-debtor   to   contend   that<\/p>\n<p>the financing institution should adopt soft methods, and there<\/p>\n<p>is   bar   against   them   in   proceeding   against   him   in   the   most<\/p>\n<p>efficient manner.   It  is  contended that after recovery by  one<\/p>\n<p>method,   automatically   the   other   steps   will   be   withdrawn,   as<\/p>\n<p>the situation may demand.\n<\/p>\n<p>       6.      We   find   considerable   merit   in   the   arguments   as<\/p>\n<p>above.     Of   course,     learned   counsel   appearing   for   the<\/p>\n<p>respondents submits that there is clear detriment and the two<\/p>\n<p>methods of recovery simultaneously engineered are mutually<\/p>\n<p>exclusive.     However,   we   fail   to   find   any   substance   in   the<\/p>\n<p>submissions.     This   cannot   be   considered   as   a   contingency<\/p>\n<p>found by  the  Supreme  Court  while  examining the   scope and<\/p>\n<p>impact   of   Sections   29   and   31   of   the   State   Financial<\/p>\n<p>Corporations Act.\n<\/p>\n<p>[WA No.1237 of 2005]<\/p>\n<p><span class=\"hidden_text\">                                      -6-<\/span><\/p>\n<p>       7.      Mr.Kalkura also referred to a recent judgment of<\/p>\n<p>the Supreme Court rendered on 29-11-2006 [<a href=\"\/doc\/1511187\/\">M\/s.Transcore<\/p>\n<p>v.  Union   of  India   and<\/a>  another &#8211;  Civil   Appeal  Nos.1374\/06<\/p>\n<p>and connected cases].  The issue had been examined in detail<\/p>\n<p>and   it   had   been   observed   that   the   position   was   not   to   be<\/p>\n<p>understood     that   while   electing   procedure   prescribed   by<\/p>\n<p>Section 31 of the Act, the rights under Section 29 of the Act<\/p>\n<p>stand   extinguished.     More   importantly,   it   had   also   been<\/p>\n<p>specifically   observed   that   when   proceedings   were<\/p>\n<p>independently   taken   as   permissible   under   two   separate<\/p>\n<p>enactments (DRT Act and NPA Act),  the shackles referred to<\/p>\n<p>in   A.P.State   Financial   Corporation&#8217;s   case   (cited   supra)     may<\/p>\n<p>not   have   relevance.     This,   according   to   us,   is   a   complete<\/p>\n<p>answer of the issue agitated.   The proceedings for execution<\/p>\n<p>of a decree, and the proceedings initiated under the Revenue<\/p>\n<p>Recovery   Act   are   independent   of   each   other   in   scope   and<\/p>\n<p>purport,   and   contextually   issue   of   prejudice   is   irrelevant,   as<\/p>\n<p>the   obvious   attempt   is   to   keep   off   the   evil   days   to   the<\/p>\n<p>maximum   extent.     Therefore,   discretion   of   the   Court   cannot<\/p>\n<p>[WA No.1237 of 2005]<\/p>\n<p><span class=\"hidden_text\">                                         -7-<\/span><\/p>\n<p>be   exercised   in   favour   of   the   petitioner   in   the   writ   petition,<\/p>\n<p>and   we   should   not   be   oblivious   of   the   plight   of   a   decree<\/p>\n<p>holder\/financier.\n<\/p>\n<p>        8.      Consequently, the judgment of the learned single<\/p>\n<p>Judge is set aside.  The Original Petition will stand dismissed.\n<\/p>\n<p>No order as to costs.\n<\/p>\n<p>                                                               V.K.BALI<\/p>\n<p>                                                        (CHIEF JUSTICE)<\/p>\n<p>                                                     M.RAMACHANDRAN<\/p>\n<p>                                                                (JUDGE)<\/p>\n<p>mks\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court Syndicate Bank vs S.S.Sheriff on 9 January, 2007 IN THE HIGH COURT OF KERALA AT ERNAKULAM WA No. 1237 of 2005() 1. SYNDICATE BANK, PUNALUR BRANCH, &#8230; Petitioner Vs 1. S.S.SHERIFF, S\/O.A.S.RAWTHER, &#8230; Respondent 2. STATE OF ERALA, REP. BY THE SECRETARY 3. DISTRICT COLLECTOR, COLLECTORATE, 4. TAHSILDAR (RR), PATHANAPURAM TALUK, For [&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-64441","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>Syndicate Bank vs S.S.Sheriff on 9 January, 2007 - 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\/syndicate-bank-vs-s-s-sheriff-on-9-january-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Syndicate Bank vs S.S.Sheriff on 9 January, 2007 - Free Judgements of Supreme Court &amp; 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