IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 28TH JULY 2010 / 6TH SRAVANA 1932 WP(C).No. 11241 of 2010(E) -------------------------- PETITIONER: --------------- NARAYANAN, 40 YEARS, S/O.K.KRISHNAN, "SAINATH', EDACHERY P.O., PALLIKUNNU, KANNUR DISTRICT. BY ADV. SRI.A.F.SEBASTIAN SMT.DELIYA PONSEK RESPONDENTS: --------------- 1. THE STATE OF KERALA, REPRESENTED BY SECRETARY, REVENUE (H)DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM. 2. THE KERALA STATE HOUSING BOARD, KANNUR DIVISION, KANNUR, REPRESENTED BY ITS SECRETARY. R1 BY GOVERNMENT PLEADER ADV. MR. M.H. ANIL KUMAR. R2 BY ADV. MR. A. JAYASANKAR, SC, KSHB. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 28/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. .............................................................................. W.P.(C) No. 11241 OF 2010 ......................................................................... Dated this the 28th July, 2010 J U D G M E N T The petitioner had availed a loan of Rs. Two lakhs from the respondent Board in the year 1995 for construction of a house, on the strength of the collateral security offered. But the repayment could not be effected on time, under which circumstance, the respondents proceeded with further steps, causing the property to be taken over and sold in public auction. Since there was no bidders, the property was later taken over as 'bought in land' by the Government under Section 50(2) of the Kerala Revenue Recovery Act and it now stands in the name of the first respondent/Government, though the liability to be Board stands as it is. 2. The learned Counsel appearing for the second respondent, on instruction, submits that pursuant to the notification issued by the Government, the Scheme for OTS has W.P.(C) No. 11241 OF 2010 2 already been extended and the same is valid till 30.09.2010. The total liability under the loan transaction is stated as Rs.14,05,261/-, out of which the petitioner has remitted Rs.9,18,112/-. Since the prayer is for permission to settle the loan account and to take back possession, the only question to be considered is whether the property could be ordered to be re- conveyed, since the same has been taken over by the first respondent under Section 50 (2) of the Kerala Revenue Recovery Act. The question of rights and liberties of the Government to take over the land as 'bought in land' under the said provision, particularly pursuant to the request made by the party concerned, had come up for consideration before this Court and it was held that the Government does not have any power to take over the property of the defaulter, who had defaulted amount to the requisitioning authority, making an unlawful gain; especially when there is no case for the Government that any amount is payable to the Government as 'arrears of public revenue due on land'. The Government has been requested by the requisitioning authority to realise the W.P.(C) No. 11241 OF 2010 3 due amount, by deploying the machinery under the Revenue Recovery Act as if it were arrears of public revenue due on land. 3. The learned Counsel for the first respondent fairly submits that the question of law has been declared by virtue of the decision reported in District Collector vs. Subaida Beevi (2010 (1) KLT 913) holding that, when the proceedings are pursuant to any requisitioning authority, the property can be taken over as 'bought-in-land' by the Government only in the name of such requisitioning authority, failing which , the sale has to be set aside. It is also conceded that the property has been taken over in the instant case in the name of the Government and not in the name of the second respondent Board. 4. In the above circumstance, the sale is set aside and it is made clear that once the liability to the second respondent is cleared by the petitioner, the property which is stated as taken over by the Government under Section 50 (2) of the Revenue Recovery Act will stand re-conveyed to the petitioner after getting confirmation from the second respondent to the effect that the liability is satisfied. The factual position in this regard W.P.(C) No. 11241 OF 2010 4 shall be conveyed by the second respondent to the first respondent within two weeks from the date of clearance of the liability and on getting information, the respondents shall re- convey the property to the petitioner at the latter's cost, within two months thereafter. The Writ Petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. lk The 2nd sentence in the 2nd paragraph of the judgment dated 28/07/2010 in W.P(C) 11241/2010 is corrected and substituted as “The total liability under the loan transaction is stated as ` 14,05,261/- out of which the petitioner has to remit ` 9,18,112/-” as per order dated 08/02/2011 in I.A.476/2011. Sd/- Registrar (Judicial)