IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN TUESDAY, THE 17TH AUGUST 2010 / 26TH SRAVANA 1932 WP(C).No. 7044 of 2007(L) ------------------------- PETITIONER(S): --------------- SMT. NELLY JOSEPH, CHARANKATTU HOUSE, CHERTHALA. BY ADV. SRI.T.G.RAJENDRAN RESPONDENT(S): --------------- 1. KERALA FINANCIAL CORPORATION, THIRUVANANTHAPURAM. 2. THE BRANCH MANAGER, K.F.C., ALAPPUZHA. 3. THE DEPUTY TAHSILDAR (R.R.), K.F.C., ALAPPUZHA. ADDITIONAL RESPONDENT: 4. THE PRINCIPAL SECRETARY, DEPT. OF REVENUE, SECRETARIAT, TRIVANDRUM, (R4 IMPLEADED AS PER ORDER IN THE WRIT PETITION ON 2.3.07) ADV. SRI.A.A.ABUL HASSAN, SC, KFC FOR R1 &2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 17/08/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No. 7044/07. APPENDIX PETITIONER(S)' EXHIBITS P1. COPY OF THE LETTER DTD.5.4.06. P2. COPY OF THE LETTER DTD.21.2.07. P3. COPY OF THE NOTICE DTD.22.7.07. sdk+ ///True copy/// P.A. to Judge S.SIRI JAGAN, J. ================== W.P.(C).No. 7044 of 2007 ================== Dated this the 17th day of August, 2010 J U D G M E N T The petitioner is a defaulter in repayment of loan amounts due from her to the Kerala Financial Corporation (KFC for short). The KFC initiated proceedings for recovery of the amounts due, through revenue recovery proceedings. Revenue recovery proceedings were initiated by the revenue authorities. It is submitted before me that notices under Sections 7 and 34 of the Act have been issued and property was attached. At that stage the petitioner chose to avail of the benefits under the one time settlement (OTS) scheme offered by the KFC and paid the amounts due to the KFC as per the OTS accepted directly to the KFC. But still the security documents are not returned to the petitioner on the ground that the petitioner has not paid the collection charges due to the State. It is under the above circumstances, the petitioner has filed this writ petition seeking the following reliefs; “a) Issue a writ of certiorari calling for the records relating to Ext.P2 order of the 2nd respondent and Ext.P3 order of the 3rd respondent and quash the original of the same. b) declare that the petitioner is not entitled to pay revenue recovery charges claimed by the Corporation in the light of this Hon'ble Court's Judgment reported in 2005 (3) KLT 150. c) writ of mandamus or any appropriate writ order or direction, commanding the 1st respondent Corporation and the Branch Manager to return the title deeds in respect of the petitioner's property since the entire loan is closed.” W.p.c.7044/07 2 2. I have heard the learned counsel for the petitioner, the learned Government Pleader and the learned standing counsel appearing for the KFC. 3. The question of liability to pay collection charges, when defaulter pays the amounts due to the requisitioning authority directly after revenue recovery proceedings have been initiated, has been the subject matter of a Division Bench decision of this Court in Malabar Organics Ltd. v. State of Kerala [2009 (4) KLT 328]. The Division Bench has held that when amounts are paid directly after initiation of revenue recovery proceedings, collection charges payable is only 1% of the amount in addition to the cost of process and other charges as permitted under Rule 4. The petitioner is a prepared to pay that amount. In the above circumstances, this writ petition is disposed of with the following directions: The 3rd respondent-Deputy Tahsildar (R.R.), KFC, shall intimate the petitioner the 1% collection charges and cost of process and other charges payable by the petitioner as laid down in the abovesaid Division Bench decision within one week from the date of receipt of a certified copy of this judgment. On payment of the said amount to the 3rd respondent, the 1st respondent shall return the security documents retained by them to the petitioner within one week thereafter. To enable the KFC to return the documents, the 3rd respondent shall issue W.p.c.7044/07 3 a receipt for the amount and a no objection certificate for return of the security document to the petitioner for production before the 1st respondent. Sd/- sdk+ S.SIRI JAGAN, JUDGE ///True copy/// P.A. to Judge