P. R. RAMAVARMA RAJA Vs. TAHASILDAR

JUDGEMENT

(1.) PETITIONER challenges Exts.P2,P4,and P6.Ext.P2 is notice of demand served on the petitioner in Form No.10 as provided by S.34 of the Revenue Recovery Act.By that notice the petitioner was called upon to pay a sum of Rs.2,71.157.21/ - being the arrears of guarantee commission for the period between 23 -10 -1967 and 7 -9 -1978.On receipt of that notice the petitioner put in objection before the Thahasildar,Talipparamba.That objection was rejected by Ext.P4 order dated 15 -10 -1982.There upon the petitioner moved the District Collector.The District Collector,by Ext.P6 order dated 29 -1 -1983 confirmed the decision of the Tahasildar.Hence this Original Petition.

(2.) THE short facts relevant for decision of this case are as follows: A detailed scheme was prepared for the development of the petitioner 's land.As per that plan the property belonging to the petitioner was mortgaged to the Government of Kerala to stand surety for the amount advanced.For the Government to be the guarantor for the advance to be made by the Bank,the petitioner was to pay commission at the rate of 1% of the amount guaranteed.This commission,it is alleged,has not been paid.The contract allowed the Government to realise the amount due from the guarantor under the provisions of the Revenue Recovery Act.Therefore,proceedings under that Act were initiated for recovery of the guarantee commission.

(3.) A detailed counter affidavit has been filed on behalf of the state The contentions raised therein are that for the long term loan of Rs 46.61 lakhs form the Central Bank of India a mortgage deed was executed on 23 -10 -1967 between the petitioner and the Bank with the state of Kerala as the guarantor,that in the year 1970 the scheme was revised and loan amount was reduced to Rs 43.58/ - lakhs,that a total amount of Rs 39.95 lakhs was disbursed,that the mortgagor failed to repay the loan,that the Government paid a sum of Rs.45.59 lakhs to the Bank in full settlement of the liabilities to the Bank,that the state has stepped into the shoes of the mortgagee on 7 -9 -1978,that para.8 of the mortgage deed dated 23 -10 -1967 provided for the payment of guarantee commission at the rate of 1% of the amount guaranteed,that the said provision implies the commission to be paid annually,that the mortgagor paid a sum of Rs.39,950 only,that Rs.2,71,157.21/ - is outstanding towards the guarantee commission and that steps initiated under the Revenue Recovery Act are valid and proper.