STATE BANK OF TRAVANCORE Vs. THASILDAR

JUDGEMENT

(1.) This is a Petition filed under Art.226 of the Constitution of India. The petitioner prays for the following reliefs:

(2.) The short facts leading to the filing of the Writ Petition may be stated as follows: The petitioner is the State Bank of Travancore. The fourth respondent is the owner of 688 acres and 53 cents of land is Sy. Nos. 329/4C, 329/1, 329/2, 329/3 in Vythiri amsom, South Wynad Taluk. The above property was mortgaged by the fourth respondent to the State Bank of Travancore, Calicut Branch on 28th July, 1969 for an amount of Rs. 10,18,549.56. As the amount was not paid the Bank filed a suit and obtained a decree in O.S. No. 104 of 1976 on the file of the Subordinate Judge, Kozhikode. The decree was passed on 10th February, 1977. For realising the amount execution proceedings were commenced and E.P. No. 223 of 1979 for the sale of the property was pending. At that stage the fourth respondent by filing C.R.P. No. 4015 of 1981 got the execution proceedings stayed. Subsequently, the first respondent, the Tahsildar, South Wynad Taluk commenced proceedings under the Kerala Revenue Recovery Act for recovery of a sum of Rs. 12,88,094.57 being the Agricultural income tax and sales tax arrears due from the Southern Plantations Ltd., the fourth respondent. Exts.P2 and P2(a) are the letter and sale notice. On receiving the same on 19-2-1985, immediately Ext. P3 objection petition was filed before the District Collector, the second respondent, on 20th February, 1985. It was specifically brought to the notice of the revenue authorities that the fourth respondent created a first charge in favour of the bank over the property and that the bank has already obtained a decree for realising the mortgaged amount, which is now more than Rs. 15 lakhs. The objection petition, Ext. P3, was not considered by the revenue authorities and no disposal was given for the same.

(3.) Though it was specifically pointed out to the revenue authorities that in view of the preexisting mortgage the State has no right under the Revenue Recovery Act to sell the property free of encumbrance, the revenue authorities tried to proceed with the proceedings under the Revenue Recovery Act. Hence the Writ Petition.