IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE 5TH JUNE 2009 / 15TH JYAISHTA 1931 WP(C).No. 5957 of 2009(L) ------------------------- PETITIONER: --------------- UNION BANK OF INDIA, KOCHI MAIN BRANCH, BAZAR ROAD, PB NO. 185, MATTANCHERY, KOCHI , PIN 682 002.,REP. BY ITS CHIEF MANAGER. BY ADV. SRI.A.V.THOMAS ADV. SRI.JOJO GEORGE ADV. SRI.NIDHI SAM JOHNS RESPONDENTS: --------------- 1. THE SPECIAL TAHSILDAR (RR), KOCHI -1. 2. THE VILLAGE OFFICER, MATTANCHERRY. BY GOVERNMENT PLEADER ADV. MR. BIJOY CHANDRAN. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 05/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. ........................................................................ W.P.(C) No. 5957 OF 2009 ......................................................................... Dated this the 5th June, 2009 J U D G M E N T The petitioner-Bank had proceeded with coercive steps against the defaulter and his assets and the property given as security was subjected to sale, at which point, the respondents herein intervened stating that huge amount was due to the department by way of sales tax and the State was having prior charge over the properties. 2. This Court has passed an interim order dated 26.02.2009 permitting the petitioner to proceed with the sale. The relevant portion of the said interim order is extracted below: “Therefore an an interim measure, it is directed that the petitioner will be entitled to proceed with the sale, which is listed today and the entire amounts flowing in by that sale will be retained in a suspense account and will be dealt with in terms of orders that would be issued in W.P.(C) No. 5957 OF 2009 2 this case. The sale shall not be confirmed unless the entire amounts due to the State Government is generated by virtue of that sale.“ 3. Later, taking note of the subsequent events, this Court modified the earlier interim order, vide order dated 26.03.2009, permitting the petitioner Bank to provisionally appropriate the entire sale consideration and also permitting the petitioner to sell off other properties as well, for generating funds, particularly since it was also held as in the best interest of the 'Revenue'. This course was pursued by this Court on the basis of the submission made from the part of the petitioner that the property which was subjected to sale did not actually belong to the 'defaulter' under the Sales Tax laws. However, the petitioner has now filed I.A.Nos. 6361 of 2009 stating that the petitioner Bank got cleared the entire Sales Tax liability due from the defaulter/original owner of the property to the State in respect of the various years viz., 1989-90, 1990-91, 1994-95 to 1997- W.P.(C) No. 5957 OF 2009 3 98, under the Amnesty Scheme notified by the Government. On getting information as to the exact liability amounting to Rs.5,76,999/- as shown in Ext.P8 issued by the departmental authorities, the petitioner cleared the entire amount by way of Cross DD for the said amount as evident from Ext.P9, pursuant to which , the departmental authorities issued Ext. P11 letter to the first respondent informing the satisfaction of the entire liability and hence that the revenue recovery proceedings could be withdrawn. It is also pointed out in the affidavit filed by the petitioner in support of the I.A. that there was some other liability as well, for the defaulter/original owner of the property, to be paid to the K.S.E.B., which is also stated as cleared by the petitioner, as evident from Exts. P12 to P17. 4. The learned Government Pleader, on instruction, submits that the entire amount as above, having been satisfied, in so far as the interest of the Government is concerned, there is absolutely no objection whatsoever in confirming the sale and permitting the petitioner to appropriate the entire sale W.P.(C) No. 5957 OF 2009 4 proceedings. In the said circumstances, the sale is permitted to be confirmed and the petitioner is permitted to appropriate the sale proceeds. The Writ Petition is allowed . No costs. P.R. RAMACHANDRA MENON, JUDGE. lk