IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR THURSDAY, THE 7TH AUGUST 2008 / 16TH SRAVANA 1930 WP(C).No. 11985 of 2006(B) -------------------------- PETITIONER: ------------ THE KODUNGALLOOR TOWN CO-OPERATIVE BANK LTD. NO. 102, KODUNGALLOOR, THRISSUR DISTRICT, REP. BY ITS GENERAL MANAGER. BY ADV. SRI.P.C.HARIDAS RESPONDENTS: ------------- 1. STATE OF KERALA, REP. BY ITS CHIEF SECRETARY, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. DISTRICT COLLECTOR, THRISSUR. 3. THE REVENUE DIVISIONAL OFFICER, THRISSUR. 4. TAHSILDAR, KODUNGALLOOR. 5. VILLAGE OFFICER, METHALA, KODUNGALLOOR. 6. P.S.VIJAYAKUMAR, S/O.SUBRAMANIAN, PUTHANKATTIL, METHALA, KODUNGALLOOR. 7. SPECIAL SALE OFFICER, THE KODUNGALLOOR TOWN SERVICE CO-OPERATIVE BANK LTD.NO.102, KODUNGALLOOR, (SENIOR INSPECTOR OF CO-OPERATIVE SOCIETIES), OFFICE OF THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), KODUNGALLOOR, THRISSUR DISTRICT. BY ADV. SRI.C.K.ABDUL RAHIM FOR R6 R1 TO R5 BY G.P. SMT.SMITHA SUKUMARAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 07/08/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX PETITIONER'S EXHIBITS: P1: TRUE COPY OF MORTGAGE DEED NO.2894/95 DT.16.6.95. P2: TRUE COPY OF NOTICE OF SALE DT.20.10.97. P3: TRUE COPY OF LETTER DT.28.10.97 SUBMITTED BY PETITIONER TO R4. P4: TRUE COPY OF LETTER OF R7. P5: TRUE COPY OF LETTER DT.24.2.06 OF R4 ADDRESSED TO R7. P6: TRUE COPY OF PROCEEDINGS DT.16.8.05 OF R3. P7: TRUE COPY OF ENCUMBRANCE CERTIFICATE DT.25.5.95. TRUE COPY PA TO JUDGE C.N.RAMACHANDRAN NAIR, J. .................................................................... W.P.(C) No.11985 of 2006 .................................................................... Dated this the 7th day of August, 2008. JUDGMENT The petitioner is challenging recovery proceedings initiated by recovery authorities for recovery of arrears of Toddy Workers Welfare Fund due from the 6th respondent. Government Pleader submitted that liability due from 6th respondent is above Rs.9 lakhs and in the sale proceedings Government purchased the property for rupee one on 9.8.2002. It is not known whether the property is sold and amount recovered for the Toddy Workers Welfare Fund dues. Petitioner's case is that since the property was mortgaged to the Bank, it is entitled to priority. However, Government Pleader submitted that property was subject to solvency bond which acts as a charge and therefore, the charge obtained by the petitioner is second charge. I do not think petitioner's case will stand because if property was subject to solvency bond for taking licence, then it could be sold in revenue recovery proceedings for recovery of Toddy Workers Welfare Fund dues which is also covered by the Solvency bond. However, if on sale of the property any excess is received, the same should be remitted to the petitioner-Bank. The W.P. is disposed of with direction to the 4th 2 respondent to notify the property in public auction and sell the same within four months from now after issuing notice to the petitioner-Bank also and sale proceeds should be first adjusted towards the Toddy Workers Welfare Fund dues and balance, if any, will be paid to the petitioner-Bank. The petitioner can arrange buyers or can even participate in the auction to protect it's interest. There will be direction to the Tahsildar to take over physical possession of the property, if not already done, and sell the same in public auction after due publication. C.N.RAMACHANDRAN NAIR Judge pms