IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT :- THE HONOURABLE MR. JUSTICE K.VINOD CHANDRAN SATURDAY, THE 19TH NOVEMBER 2011 / 28TH KARTHIKA 1933 W.P.(C).No.4798 of 2007(U) ------------------------------------------ PETITIONER:- ------------------------ P.H.SAINULABDEEN, S/O.HAMEED RAWTHER, PUTHUPARAMBIL HOUSE, NEAR MARTHOMA CHURCH, CHANGANACHERRY, PIN- 686101. BY ADV. SMT.SALLY THOMAS CHACKO RESPONDENTS:- ------------------------- 1. KERALA STATE FINANCIAL CORPORATION, VELLAYAMBALAM, THIRUVANANTHAPURAM. 2. CHIEF MANAGER, KERALA FINANCIAL CORPORATION, BRANCH OFFICE, M.C.ROAD, KOTTAYAM, NEAR YWCA, 686001. 3. DEPUTY TAHSILDAR, (R/R), ATTACHED TO THE OFFICE OF THE 2ND RESPONDENT, K.F.C. BRANCH OFFICE, M.C.ROAD, NEAR YWCA, KOTTAYAM 686001. 4. STATE OF KERALA, REPRESENTED BY CHIEF SECRETARY, THIRUVANANTHAPURAM. R1 & R2 BY STANDING COUNSEL SRI.JAMES KURIAN R1 & R2 BY STANDING COUNSEL SRI.A.A.ABUL HASSAN. R3 & R4 BY GOPVERNMENT PLEADER SRI.S.ABDUL SALAM. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19/11/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:- APPENDIX PETITIONER'S EXHIBITS:- ------------------------------------ EXT.P1 - PHTO COPY OF JUDGMENT IN WP(C).26862/2004 dated 30.9.2004. EXT.P2 - ORDER IN I.A.NO.5360/2005 IN WP(C)26862/2004 DATED 4.4.2005. EXT.P3 - PHOTOCOPY OF THE RECEIPT ISSUED BY THE RESPONDENT DATED 15.4.2005. EXT.P4 - PHOTO COPY OF RECEIPT OF THE RESPONDENT FOR COLLECTING A SUMN OF RS.2,43,941/- AS COLLECTION CHARGES DATED 16.6.2005. EXT.P5 - TRUE COPY OF THE REPRESENTATION SUBMITTED BY PETITIONER BEFORE THE RESPONDENT DATED 14.10.2005. EXT.P6 - PHOTOCOPY OF THE JUDGMENT DATED 5.4.2006 IN WP(C). NO.10392 OF 2006-K OF THIS COURT. EXT.P7 - TRUE COPY OF THE COVERING LETTER FORWARDING COPIES OF O.P.10392 OF 2006 AND JUDGMENT TO THE 1ST RESPONDENT DATED 9.5.2006. EXT.P8 - PHOTOCOPY OF THE POSTAL ACKNOWLEDGMENT OF ITEM NO.1 DATED 20.5.2006. EXT.P9 - PHOTO COPY OF THE LETTER DATED 11.7.06 BY THE 2ND RESPONDENT TO THE PETITIONER DATED 11.7.2006. EXT.P10 - PHOTO COPY OF THE LETTER DATED 18.12.2006 SENT BY THE 2ND RESPONDENT TO THE PETITIONER DT.18.12.2006. EXT.P11 - PHOTO COPY OF THE LETTER DATED 10.1.2007 SENT BY THE 2ND RESPONDENT TO THE PETITIONER'S COUNSEL DATED 10.1.2007. RESPONDENT'S EXHIBITS:- --------------------------------------- EXT.R3 - TRUE COPY OF THE GOVT. CIRCULAR NO.43972/H3/05/RD DATED 4.11.2005. - true copy - K.Vinod Chandran, J. ---------------------------------------- W.P.(C).No.4798 of 2007-U ---------------------------------------- Dated this, the 19th day of November, 2011 JUDGMENT The above writ petition is filed challenging Exhibits P10 and P11 orders of the Kerala Financial Corporation (for short “KFC”), the 1st respondent. The petitioner had availed of a loan from the KFC and on default, revenue recovery steps were taken against the petitioner, subsequent to which the petitioner had settled the entire loan liability with the KFC under One Time Settlement (for short “OTS”) scheme. However, after settling the loan liability under the OTS scheme, the KFC insisted on a No Liability Certificate from the revenue authorities as a condition for releasing the title deeds deposited with the KFC. On such insistence, the petitioner approached the revenue authority, who insisted on payment of collection charges. The collection charges demanded by the revenue authorities were deposited by the petitioner as per Exhibit P4. Subsequently, the petitioner had applied for refund of the amounts by Exhibit P5 to the KFC and had also approached this Court for a direction to the KFC to consider the representation of the petitioner. By Exhibit P10, the KFC replied to the petitioner that the revenue authorities have refused to return the collection charges collected from the petitioner. The KFC also replied to the lawyer notice W.P.(C).No.4798 of 2007-U - 2 - issued by the petitioner, informing the petitioner that the revenue authorities had refused refund of the amounts on the ground that the Circular regarding non-collection of collection charges in connection with OTS was with effect from 4.11.2005 and the petitioner's payment was prior to that, more specifically 16.6.2005. The learned Government Pleader also submitted before me that the specific stand taken by the State in the counter affidavit is in the very same lines. The petitioner, however, would point out that the issue was settled by a decision of a learned Single Judge of this Court in Bhaskaran v. Sub Registrar, 2005 (3) KLT 150, wherein it was declared that when amounts are directly paid to the requisitioning authority, the defaulter is not liable to pay collection charges. The said judgment was affirmed by a Division Bench of this Court in Malabar Organics Ltd. v. State of Kerala, 2009 (4) KLT 328. The Division Bench, in the concluding paragraph, had also directed the Government, the Corporations and institutions to examine each case on facts and do the needful in the matter of levy of the collection charges/service charges and for returning the documents and refund of excess amounts, if any collected, in the light of that judgment. However, the counsel for the respondent-Corporation as also the Government Pleader submits that W.P.(C).No.4798 of 2007-U - 3 - the above matter has been taken up by way of Special Leave Petition to Supreme Court and the judgment is stayed. The petitioner having already remitted the amount by way of collection charges, I do not think any order can be passed at this stage. However, the petitioner will be entitled to move the appropriate authority for refund of the amounts, if ultimately the declaration made by this Court in 2009 (4) KLT 328 is affirmed by the Supreme Court also. The writ petition is disposed of with the above direction. Sd/- K.Vinod Chandran, Judge. vku/-