TAHSILDAR CHANGANACHERRY Vs. N A THOMAS

JUDGEMENT

(1.) THIS is an appeal against a judgment given by Govindan nair, J. whereby he vacated a sale conducted under the Travancore-Cochin revenue Recovery Act (VII of 1951), hereinafter called the 1951 Act, and thus allowed O. P. 839 of 1965 which was filed for that relief and the two questions arising for decision in the appeal are whether purchase of an item of land by Government for a nominal amount under S. 36a (2) of the 1951 Act is permitted only when there is arrear of public revenue due on it and whether a land can be treated as one in respect of which there is arrear of public revenue if it is mortgaged to the State for taking a loan under the Travancore-Cochin State Aid to industries Act, (XIX of 1952) hereinafter called the 1952 Act, and the person aided has defaulted to pay back the loan as contracted.

(2.) THE relevant facts can be set out in a short compass. 25 cents of land belonging to the Respondent, who was the Petitioner in O. P. 839 of 1965 was mortgaged by him along with other properties to the State and he took from the State a loan of Rs. 32,000 under the 1952 Act for storing tannery works. THE agreement was to pay back the amount borrowed in 40 half-yearly instalments. When some of the instalments were defaulted the land referred to above was put up for sale in public auction under the 1951 Act. In the notice regarding sale it was mentioned that the amount due to the State was rs. 22,573-25 and interest. In the sab conducted on 25-2-1965 the Tahsildar, changanacherry. purchased the property on behalf of the Government for 5 paise. It was then that the respondent filed O. P. 839 of 1955 for vacating the sale.

(3.) NOW we shall consider what is the correct interpretation to be put on S. 36a. For that purpose we shall first read that section. "36a. Postponement of sale and purchase by government at the subsequent sale -- (1) When immovable property is put up for sale at the time and place specified in the notice under clause (2) of S. 36 for the recovery of arrears of public revenue due thereon, if there be no bid, or, if the highest bid be insufficient to cover the said arrears and those subsequently accruing up to the date of sale, the officer conducting the sale shall postpone the sale to another date and give notice of the subsequent sale as required by clause (2) of S. 36. (2) When the property is put up for sale on the date to which the sale was postponed under sub-section (1), at the time and place specified in the notice, if there be no bid, the officer conducting the sale may purchase the property on account of the Government for any nominal amount, or, if the highest bid be insufficient to cover the arrears of public revenue due on the property and those subsequently accruing up to the date of sale, such officer may purchase the property on account of the Government at the highest amount of bid; and in either case the Government shall acquire the property subject to the provisions of this Act. (3) The provisions of clauses (3), (4) and (5) of S. 36 shall not apply to cases where immovable property is purchased on account of the Government under this section. " For arrears of public revenue due on a land all the properties, movable and immovable, of the defaulter are liable to be proceeded against under S. 6 of the 1951 Act which reads thus: "6. When public revenue due on land may be in arrear, such arrear, together with interest, if any, and costs of process, may be recovered by the sale of the defaulter's movable or immovable property or by all or any of these processes in the manner hereinafter provided. " If the defaulter has 2 items of land, A and B, and kist is in arrear only for the land A the other land B can also be sold for the same. Although both of them can be proceeded against for the arrears of public revenue only the land A is security for the public revenue. It is S. 3 of the 1951 Act which makes the land is respect of which there is arrear of public revenue security for the same and it reads thus: "3, The land, the buildings upon it and its products shall be regarded as security for the public revenue on such land. "