LAKSHMI ENTERPRISE Vs. STATE OF KERALA

JUDGEMENT

(1.) The petitioners challenge Exts. P6 and P7 notices issued under the Revenue Recovery Act (for short "the RR Act") demanding an amount of Rs.20,13,87,103/- with interest at 19.75% per annum with effect from 01/08/2006 as also collection charges at 5.5%. The notices under the RR Act are under challenge in this writ petition inter alia on the ground that the provisions of the RR Act cannot be invoked for recovery of amounts due from the petitioners at the instance of the 3rd respondent. The 3rd respondent is a new Generation Bank, and it is not in the public sector. The petitioners challenge the notices under the RR Act on more than one ground.

(2.) It is firstly contended that the 3rd respondent has already approached the Debt Recovery Tribunal, Ernakulam in OA No. 227/06. It is then contended that the 3rd respondent has also invoked the provisions of the Securitisation and Reconstruction Enforcement of Security Interest Act (Act 54/02) (for short 'Securitisation Act') and in exercise of the powers under S.13(4) of the Securitisation Act, some of the mortgaged properties have been taken possession of by the 3rd respondent. At the same time, the impugned notices under the RR Act have been issued for recovery of amounts due to the Bank. The petitioners contend that it is not open to the 3rd respondent to prosecute 3 parallel remedies at the same time under the Recovery of Debts (Due to Banks and Financial Institutions) Act, the Securitisation Act and under the RR Act.

(3.) It is then contended by the petitioners that the amounts due to the 3rd respondent cannot be recovered by recourse to the provisions of the RR Act, as the provisions of the RR Act can be involved only for amounts comprehended by the notification issued under the RR Act declaring recovery of certain categories of amounts due to banks and financial institutions as recoverable under the provisions of the said Act. Reference in this regard is made to the decision of the Supreme Court in Califfs India Chambers v. Syndicate Bank, 1999 KHC 68 : 1998 (9) SCC 163 : 1999 (1) KLT 155 .