NAZARUDEEN A Vs. DISTRICT COLLECTOR KOLLAM

JUDGEMENT

(1.) FIRST petitioner had availed of a business loan and the ND petitioner is the guaranteer. When default was committed by the petitioners in paying the amount, Bank filed O.S.869/11 before the Sub Court, Kollam, for recovery of the amount. That Suit is still pending. Meanwhile, it appears that the petitioners were offered the benefit of OTS Scheme. However, payment as required was not made. In such circumstances, revenue recovery action was initiated by the Bank by Ext.P7. To that notice, petitioners filed Ext.P8 objection. It is thereafter, that this writ petition has been filed.

(2.) ALTHOUGH when the writ petition was admitted by this Court on 14.9.2012, this Court granted a stay on condition that the petitioners remit Rs.50,000/- within three weeks, that payment has not been made so far.

(3.) INSOFAR as the correctness of the validity of the revenue recovery action now initiated is concerned, admittedly, petitioners are defaulters. Bank is an institution invoking under Section 71 of the Revenue Recovery Act and the loan in question is a priority sector loan also. In such circumstances, revenue recovery action initiated cannot be said to be illegal.