KADEEJA BEEVI Vs. KERALA FINANCIAL CORPORATION

JUDGEMENT

(1.) The petitioner had borrowed certain amount from the 1st respondent, the Kerala Financial Corporation. The Government have issued Exi.P-5 notification in exercise of the powers conferred under S.71 of the Kerala Revenue Recovery Act, 1968. It is the admitted case that the entire amount due to the Financial Corporation has been discharged by the petitioner.

(2.) What is sought to be recovered under Ext. P-7 letter is a sum of Rs.60,957.87 which is alleged to represent revenue recovery charges, alleged to be due to Government. The respondents have no case that any amount was collected in proceedings under the Revenue Recovery Act All the same, the contention of the 2nd respondent Government was that by virtue of the provisions contained in R.5(1) of the Kerala Revenue Recovery Rules, 1968, the Government was entitled to collect revenue recovery charges at the rate of 5 percent on the amount collected; and accordingly, the 1st respondent Corporation has been directed to remit the amount inasmuch as Revenue Recovery proceedings had already been initiated for the recovery of the amount due from the petitioner to the Corporation. R.5(1) of the Rules reads as follows:-