IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 2ND NOVEMBER 2010 / 11TH KARTHIKA 1932 WP(C).No. 27881 of 2010(I) --------------------------------- PETITIONER(S): ------------------- P.S.DINESH AGED 44 YEARS, S/O. P.C.SUNDARAN, PUTHEN HOUSE, KARIPPODE, PUDUNGARAM, PALAKKAD. BY ADV. SRI.U.BALAGANGADHARAN RESPONDENT(S): -------------------- 1. THE TAHSILDAR (REVENUE RECOVERY) REVENUE RECOVERY OFFICE, CHITTUR, PALAKKAD. 2. THE OFFICIAL LIQUIDATOR ATTACHED TO THE HON'BLE HIGH COURT OF KERALA ERNAKULAM REPRESENTING M/S. LIBRA STEELS (P) LTD IN LIQUIDATION) * ADDL. R3 AND R4 ARE IMPLEADED 3. SPECIAL OFFICER, KERALA STATE ELECTRICITY BOARD, VIDHYUDHI BHAVAN, THIRUVANANTHAPURAM. 4. KERALA STATE ELECTRICITY BOARD, REPRESENTED BY SECRETARY, VIDHYUDHI BHAVAN, THIRUVANANTHAPURAM. * ARE IMPLEADED AS ADDL. R3 AND R4 AS PER ORDER DATED 05/10/2010 IN I.A. NO.13669/2010. R1 BY GOVT.PLEADER SRI.BIJOY CHANDRAN R2 BY ADV. SRI.K.MANI R3 & R4 BY ADV. SRI.P.P.THAJUDEEN, SC, K.S.E.B THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02/11/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs/ C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.27881 of 2010-I ---------------------------------------- Dated this the 2nd day of November, 2010. J U D G M E N T The petitioner is a Director of a Company M/s.Libra Steels (P) Ltd., which is in liquidation. The petitioner is aggrieved by steps of recovery initiated under provisions of the Kerala Revenue Recovery Act for realisation of amounts due to the Kerala State Electricity Board, from the company. Ext.P8 notice was issued under Section 36 of the Kerala Revenue Recovery Act, effecting attachment of immovable properties owned by the petitioner and others. It is pointed out that the steps under Ext.P8 is issued against the personal properties, on the basis that, the petitioner is a partner of the firm 'M/s.Libra Steel Pvt.Ltd.' It is pointed out that M/s.Libra Steel is not a partnership firm but it is a company incorporated. It is further stated that this Court in C.P.No.25/2005 has ordered winding up of the above said company through Ext.P1 judgment, dated 27.2.2009, and the liquidation proceedings is in progress. W.P(C) No.27881 of 2010-I 2 Under the above circumstances the revenue recovery steps now initiated against the immovable properties belonging to the petitioner and others is unsustainable, is the contention. 2. Heard the standing counsel appearing for the second respondent as well as third and fourth respondents. The fact that the company is under liquidation is accepted. It is also admitted that the petitioner is only a Director of the Company. The petitioner points out a decision of this Court in Joji Paul V. District Collector (2010(3) KLT SN 68 (Case No.75) to content that the proceedings against a Director of the Company for recovery of any amounts whatsoever due from company is not maintainable. Even otherwise, it is settled law that the Directors can be held liable for the default of the company only in accordance with certain specific provisions contained in the Companies Act. Further it is noticed that since the company is in liquidation, the additional respondents 4 and 5 have to take appropriate steps under the provisions of the Companies Act for realising amounts due to them. W.P(C) No.27881 of 2010-I 3 3. Under the above circumstances, I am of the view that recovery steps now initiated pursuant to Ext.P8 is unsustainable. Accordingly, the writ petition is allowed and the recovery steps initiated against immovable property of the petitioner as per Ext.P8 is hereby quashed. 4. It is made clear that additional respondents 3 and 4 are at liberty to take appropriate steps permissible under law for realising the amounts from the assets of the company. C.K.ABDUL REHIM JUDGE ab