IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE V.GIRI FRIDAY, THE 8TH FEBRUARY 2008 / 19TH MAGHA 1929 WP(C).No. 4615 of 2008(Y) ------------------------- PETITIONER: ------------ I.F.C.I.LTD (FORMERLY KNOWN AS INDUSRIAL FINANCE CORPORATION OF INDIA) REP. BY PETER P. CHERIAN ASST.GENERAL MANAGER, IFCI LTD IFCI BHAVAN,PANAMPILLY NAGAR, KOCHI-36. BY ADV. SRI.L.MOHANAN SMT.LIGEY ANTONY RESPONDENTS: ------------- 1. STATE OF KERALA REPRESENTED BY ITS SECREATARY REVENUE, SECRETARIAT, THIRUVANANTHAPURAM. 2. THE TAHASILDAR (RR) CHERTALA. 3. INTEGRATED RUBIAN EXPORTS LTD., RUBIAN COMPLEX, AROOR, ALAPPUZHA. BY GOVERNMENT PLEADER SRI. TEKCHAND THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/02/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: V.GIRI, J ------------------- W.P.(C).4615/2008 -------------------- Dated this the 8th day of February, 2008 JUDGMENT Petitioner is a Public Limited Company and is also a Public Financial institution within the meaning of the Recovery of Debts due to Banks and Financial Institutions Act, 1993. An amount of Rs.443.34 Lakhs was advanced by the petitioner to one Integrated Rubian Exports Ltd., the third respondent. According to the petitioner, the loan was secured by equitable mortgage created by deposit of title deeds of the properties belonging to the third respondent as also the guarantors of the third respondent. When there was default in the re-payment of the loan, petitioner moved the Debt Recovery Tribunal, Eranakulam, and ultimately Ext.P1 order was passed certifying that the petitioner is entitled to recover an amount of Rs.23,74,11,148/-. Ext.P2 notice of demand was issued thereafter for a higher sum. Award is pending execution. In the meanwhile, second respondent, Tahasildar, has issued notice for an amount of Rs.56,26,246/- stated to be due from the third respondent W.P.(C).4615/2008 2 by way of arrears of sales tax, electricity charges and telephone charges. Petitioner submits that the properties belonging to the borrower had been mortgaged and an interest in respect of the property was created in favour of the petitioner prior to the date when borrower incurred the liability towards the sales tax, electricity charges and telephone charges and submitted that if at all the group debt is considered as having a prior charge, the said priority will be available only as regards the arrears of sales tax and not with regard to the electricity charges and telephone charges. These aspects have been highlighted in Ext.P4 objections submitted before the second respondent. 2. Having heard the learned counsel for the petitioner and the learned Government Pleader, Writ petition is disposed of directing the second respondent to consider Ext.P4 objection and pass a reasoned order, after hearing the representative of the petitioner and if necessary, a representative of the borrower, Company. W.P.(C).4615/2008 3 Requisitioning authority in so far as the demand under Ext.P3 is concerned, shall also be heard. It is made clear that enforcement of Ext.P3 will be subject to the orders to be passed by the second respondent on Ext.P4. V.GIRI, Judge mrcs