IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC THURSDAY, THE 17TH JULY 2008 / 26TH ASHADHA 1930 WP(C).No. 11287 of 2008(R) -------------------------- PETITIONER: ------------ 1. K.A. MADHANAN, S/O. ANCHAKLAN, AGED 55 YEARS, KAVUNGAL HOUSE, WARD XI, NJARACKAL VILLAGE, KOCHI TALUK, ERNAKULAM DISTRICT 2. K.C. KUTTAN, S/O. CHINNAPPAN, KOOTTUNGAL HOUSE, NEAR DISPENSARY BUS STOP, CHERAI P.O., PALLIPPURAM VILLAGE,PARAVUR TALUK, ERNAKULAM DISTRICT. BY ADV. SRI.BABU JOSEPH KURUVATHAZHA SRI.K.I.SAGEER RESPONDENTS: ------------- 1. NJARACKAL GRAMA PANCHAYAT, REP. BY ITS SECRETARY, NJARACKAL P.O., VYPEEN ISLANDS, ERNAKULAM DISTRICT. 2. THE SECRETARY, NJARACKAL GRAMA PANCHAYAT, NJARACKAL P.O., VYPEEN ISLANDS, ERNAKULAM DISTRICT. 3. THE DEPUTY TAHSILDAR, REVENUE RECOVERY, COCHIN-1. BY ADV. SRI.K.S.MADHUSOODANAN FOR R1 SRI.T.V.JAYAKUMAR NAMBOODIRI FOR R1 SRI.THUSHAR NIRMAL SARATHY FOR R1 SRI.M.M.VINOD KUMAR FOR R1 SMT.K.M.RAMYA FOR R1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. -------------------------------------------------------- W.P.(C) 11287 of 2008 -------------------------------------------------------- Dated: JULY 17, 2008 JUDGMENT The challenge in this writ petition is against the revenue recovery proceedings initiated against the petitioner by Exts.P3 and P4. 2. The petitioner was awarded a contract for the construction of a building to be used as “Malsyabhavan”. According to him, on awarding the work, an agreement was executed with the respondent Panchayat. It is stated that though he mobilised the materials and commenced the work, it was terminated by the Panchayat. According to him, thereafter Ext.P3 revenue recovery notice was issued for recovering Rs.1,27,000/-. Though the petitioner approached the Civil Court by filing a suit as CS 131/2004 for settlement of the dispute and the Court passed Ext.P7 interim order against the recovery, the suit was later dismissed for non-payment of balance court fee. Thereafter WP(C) 11287 of 2008 2 Ext.P4 revenue recovery notice was again issued for recovering Rs.1,70,337/-. It is at that stage, impugning Exts.P3 and P4, this writ petition has been filed. 3. It is contended by the learned counsel for the petitioner that Exts.P3 and P4 are based on a unilateral quantification of his liability. According to him, the Panchayat being one of the parties to the contract, cannot take the role of an adjudicator and unilaterally quantify his liability. It is stated that this can be done only by an arbitrator or a court, unless there is a specific provision in the agreement between the parties enabling the respondents to unilaterally quantify the dues. Learned counsel for the petitioner relies on a Division Bench decision of this Court in Shriram Engineering Construction Co. Ltd. v. KSIDC - 2007 (2) KLT 388 in support of this proposition. 4. The Panchayat has no case that the agreement authorised it to unilaterally quantify the liability of the petitioner for damages. In the absence of such an authorisation in its favour, the Panchayat can only take recourse to the ordinary law of the land by approaching the WP(C) 11287 of 2008 3 Civil Court or, subject to the terms of the contract between the parties, proceedings for arbitration. When once the liability is quantified in such a proceedings, it may be permissible for the Panchayat to take recourse to the Revenue Recovery Act to recover the amount so quantified. In this case the liability has not been quantified in the permissible manner. On the other hand, the Panchayat has unilaterally quantified the liability. This is clearly impermissible. For that reason Exts.P3 and P4 will stand quashed. However, I make it clear that this judgment will not stand in the way of the Panchayat approaching the Civil Court or, if permissible, the arbitrator to get the liability, if any, quantified, and thereafter initiate proceedings for the recovery thereof. Writ petition is disposed of accordingly. ANTONY DOMINIC JUDGE mt/-