BENZY MARTIN Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioners are persons against whom the Kerala State Financial Enterprises Limited has issued notice under the Kerala Revenue Recovery Act, 1968 for recovery of alleged dues from the petitioners. The petitioners seek to declare that the KSFE Limited is not entitled to take recourse to the provisions of the Kerala Revenue Recovery Act, 1968 for recovering amounts covered under Exts.P1 and P2 notices through the machinery of respondents 2 and 3 as it is hit by the provisions of the Chit Funds Act, 1982.

(2.) The petitioner in W.P.(C) No.35389/2023 has been issued with notice of attachment under Sec. 36 of the Kerala Revenue Recovery Act, 1968. The notice indicated that an amount of Rs.40,77,403.00 along with interest of 12%, and 5% processing fee / collection fee is payable by the petitioner. The KSFE is the Requisitioning Authority under the Revenue Recovery Act. The petitioners in W.P.(C) Nos.17839 and 17840 of 2024 are also persons upon whom notices have been issued by the KSFE Limited invoking the provisions of the Kerala Revenue Recovery Act, 1968.

(3.) The petitioners state that the notice issued at the instance of the KSFE Limited under Sec. 36 of the Kerala Revenue Recovery Act is not legally maintainable. According to the petitioners, the 4threspondent being engaged in the business of chitty, is governed by the Chit Funds Act, 1982. Chapter 12 of the Chit Funds Act deals with the disputes and arbitration. Sec. 64 of the Chit Funds Act states that notwithstanding anything contained in any other law for the time being in force, any dispute touching the management of a chit business shall be referred by any of the parties to the dispute, to the Registrar for arbitration. Sec. 64(3) provides that no Civil Court shall have jurisdiction to entertain any suit or other proceedings in respect of any dispute referred to in sub-sec. (1).