LIC HOUSING FINANCE LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) THE petitioner is a financing company owned by the Life Insurance Corporation of India. THE petitioner initiated proceedings against the respondents 6 to 8 for recovery of the loan amounts taken by them from the petitioner. Proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) has been initiated against them. THE petitioner has taken possession of the secured asset. In the meanwhile, the District Collector initiated proceedings against the same property for recovery of Government dues on the ground that the subject property was attached for arrears of sales tax payable. THE petitioner therefore seeks the following reliefs:

(2.) THE petitioner had filed an affidavit stating that, valuation of the property would be approximately Rs.27,40,000/-. It is evident that the liability due under the revenue recovery proceedings initiated by respondents 1 to 3 with respect to arrears of sales tax is a sum of Rs.1,87,244/- as on 31.3.2010, along with interest due thereafter. It is undertaken by the petitioner through the affidavit that on the event of the petitioner being permitted to sell the property, they will clear the above said liability due to respondents 1 to 3. Under that premise, the petitioner seeks permission to conduct sale of the property in question.

(3.) THEREFORE, the petitioner is permitted to proceed with the sale subject to further orders regarding appropriation of the amount."