K JACOB Vs. DISTRICT COLLECTOR

JUDGEMENT

(1.) The petitioner is challenging revenue recovery proceedings for recovery of amount decreed by the civil court against the petitioner ill favour of the third respondent-Bank. It is conceded that the amount decreed is liability due to the Bank in the Credit Card account of the petitioner. The petitioner who was holding a Savings Bank Account did not provide sufficient funds in the account for the Bank to adjust the same against debit balance in the Credit Card Account. Accordingly Bank filed suit and obtained a decree against the petitioner for recovery of the outstanding amount with interest thereon. As on the date of initiation of revenue recovery proceedings the amount due from the petitioner to the Bank was Rs. 34,264/- with future interest.

(2.) Counsel for the petitioner submitted that revenue recovery proceedings cannot be initiated for recovery of amount due under Credit Card account as the notification issued by the Government namely, SRO 797/1997 under Section 71 of the Revenue Recovery Act, 1968 authorises recovery through revenue recovery proceedings only for development loans which does not take in advance made under the Credit Card Account. Counsel for the petitioner has also relied on the decision of the Supreme Court in Califf India Chambers v. Syndicate Bank 1999 (1) KLT 155 wherein the Supreme Court has held that unless the loan falls within the definition of development loan found in the notification, revenue recovery is not maintainable. Counsel for the third respondent on the other hand relied on the decision of this court in State Bank of India v. Kuttappan 1998 (2) KLT 130 and contended that decree amount can be recovered through revenue recovery proceedings under the abovereferred notification issued under Section 71 of the R.R Act. However, on going through the decision of this court I find all what this court has held is that amount due under a decree also can be recovered through revenue recovery proceedings provided the loan comes within the purview of the notification. Loan under development scheme is notified by the Government under SRO 1465/87 which is as follows: