IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN MONDAY, THE 1ST SEPTEMBER 2008 / 10TH BHADRA 1930 WP(C).No. 21662 of 2008(D) -------------------------- PETITIONER: ---------------- JOSE G., S/O GREGORI, KUZHUVELIL KIZHAKKATHIL HOUSE, KARALY JUNCTION P.O., SASTHAMKOTTA VIA, KOLLAM DISTRICT. BY ADV. SRI.P.KESAVAN NAIR SRI.K.G.CLEETUS RESPONDENTS: ----------------- 1. THE KERALA FINANCIAL CORPORATION, REPRESENTED BY ITS MANAGING DIRECTOR, VELLAYAMBALAM, THIRUVANANTHAPURAM. 2. CHIEF MANAGER, THE KERALA FINANCIAL CORPORATION, BRANCH OFFICE, IST FLOOR, FINANCE TOWER, KALOOR, KOCHI 682 017 ADDL.R3: THE DEPUTY TAHSILDAR (RR), KERALA, FINANCIAL CORPORATION, KALOOR, ERNAKULAM, KOCHI – 17. (ADDL.R3 IS IMPLEADED AS PER ORDER IN I.A. NO.9599/08 DTD. 28.7.08.) BY ADV. SRI.M.M.SAYED MUHAMMED, SC, KFC FOR R1 & 2 GOVT.PLEADER SRI. I.V. PRAMOD. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01/09/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S. SIRI JAGAN, J. ------------------------------------ W.P.(C)No.21662 OF 2008 ---------------------------------------- Dated this the 1st day of September, 2008 JUDGMENT The petitioner availed of a loan from the 1st respondent Kerala Financial Corporation. He defaulted repayment of the same. The KFC initiated revenue recovery proceedings. Thereafter, the petitioner availed benefit of One Time Settlement Scheme and repaid the entire amounts due. The petitioner's grievance in this writ petition is that in spite of clearing of the entire dues, the KFC is not releasing the security documents demanding collection charges also. The petitioner submits that in so far as the petitioner has paid the amount directly to the KFC without intervention of the revenue authorities he is not liable to pay any collection charges. The petitioner also relies on the decision of this Court in Bhaskaran V. Sub Registrar [2005(3) KLT 150]. 2. I have heard the learned counsel for the KFC as well as the learned Government Pleader appearing for the 3rd W.P.(c)No.21662/08 2 respondent. The learned Government Pleader on instructions submits that apart from issuing notice under Sections 7 and 34 of the Kerala Revenue Recovery Act, no further steps have been taken by the revenue authorities in this regard. 3. In the above circumstances, I am satisfied that the dictum laid down in Bhaskaran's case squarely applies to the facts of this case. However, the learned Standing Counsel for the KFC submits that in view of the recent amendment to the Kerala Revenue Recovery Act, the revenue authorities may insist on the KFC paying the collection charges. I am of opinion that once the defaulter is not liable to pay collection charges, the collection charges cannot be realised from the Requisitioning Authority also. That being so, the revenue authorities cannot realise collection charges from the 1st respondent also. Accordingly, the writ petition is disposed of declaring that the petitioner is not liable to pay any collection charges in this matter and directing respondents 1 and 2 to release the security documents, if all other amounts other than collection W.P.(c)No.21662/08 3 charges have been fully paid off. This shall be done within a period of two weeks from the date of receipt of a copy of this judgment. S. SIRI JAGAN, JUDGE Acd W.P.(c)No.21662/08 4