KOZHIKODE MUNICIPAL CORPORATION, REPRESENTED BY ITS SECRETARY Vs. MANAGING DIRECTOR, KERALA AGRO INDUSTRIES CORPORATION LTD

JUDGEMENT

(1.) This writ petition is filed by the petitioner Municipal Corporation seeking to quash Exts.P1, P2 and P4 revenue recovery notices issue under Sections 7 and 34 of the Kerala Revenue Recovery Act, and the order of the Tahsildar dated 02.07.2015, affirming the action of issuing demand notices under the Kerala Revenue Recovery Act. Brief material facts for the disposal of the writ petition are as follows:

(2.) Apparently, the recovery notices were issued at the instance of the 1st respondent company, i.e., the Kerala Agro Industries Corporation Ltd., to recover the amounts due from the Municipal Corporation towards repair of the vehicles. The paramount contention advanced by the petitioner is that, the recovery sought for against the petitioner to recover an amount of Rs.25,14,309/- is illegal, because it is a time barred debt allegedly due from the petitioner on 29.06.1994. It is also pointed out that, there was no demand raised by the 1st respondent Corporation against the petitioner with respect to any amounts due. It is further pointed out that, the amounts were recovered from the account of the petitioner, which is not a legal due entitled to be recovered by the 1st respondent. That apart, it is submitted that, the requisition to recover the amount for the period 1994 was issued by the 1st respondent Corporation to the revenue authorities only during the year 2011. It is further submitted that, as per Article 113 of the Limitation Act, 1963, there is only a period of three years to recover any amounts due. The 1st respondent Corporation cannot be treated as a State, so as to secure the benefit of Article 112 of the Limitation Act. Therefore, the sum and substance of the contention advanced by the petitioner is that, the action initiated against the petitioner and the recovery effected are arbitrary and illegal, liable to be interfered with by this Court under Article 226 of the Constitution of India.

(3.) The 1st respondent has filed a detailed counter affidavit, refuting the allegations and claims and demands raised by the petitioner. Among other contentions, it is stated that, the repair work of sanitation vehicles of Health Department of Kozhikode Municipal Corporation, such as tractors, lorries etc., were undertaken by the company, i.e., the Kerala Agro Industries Corporation Ltd., in its Kozhikode unit from 1990 to 2012. During the said period, there were huge amounts of outstanding payments against the petitioner Corporation towards cost of spare parts, repair charges etc. incurred for repairing various vehicles, tractors, sign board fabrication, repair of fogging machine, fabrication and erecting of safety grills, erecting and maintenance of bio-gas plant, excavator, AMC of various vehicles etc. by the petitioner, and the total amount outstanding as on 01.10.2012 was Rs.22,63,559/-.