CALIFF INDIA CHAMBERS Vs. SYNDICATE BANK KALAMASSERY

JUDGEMENT

(1.) Special leave granted.

(2.) The only question that falls for consideration in this appeal is whether the respondent, a nationalised scheduled bank is entitled to invoke the provisions of the Kerala Revenue Recovery Act, 1968 (hereinafter referred to as 'the Act') for the purpose of recovering the dues payable by the appellants to the respondent-Bank.

(3.) Appellants Nos. 1 and 2 are engaged in the manufacture of Quadre sheets and chappals at their factory situated on the industrial development plot at Kalamassery. For the purpose of carrying on the said business the said appellants were in need of funds and they approached the respondent-Bank for loan. The respondent-Bank sanctioned an over draft facility to the extent of Rs. 2 lakhs and discounting facility to the extent of Rs. 3.25 lakhs. For due payment of the said loan the stock in trade of appellant No. 1 was given as security also the land of appellant No. 3 was given as collateral security. Appellant Nos. 2 to 4 also made themselves personally liable. Since the appellants failed to pay the dues, the respondent-Bank initiated proceeding for recovery of the same under the provisions of the Act by issuing a notice under Section 69 (2) of the Act. The provisions of this Act have been invoked on the basis of the notification of the Government of Kerala dated October 13, 1987 issued under Section 71 of the Act. Section 71 of the Act provides as under: