IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 21ST JULY 2011 / 30TH ASHADHA 1933 WP(C).No. 7062 of 2010(G) --------------------- PETITIONER : -------------------- LIC HOUSING FINANCE LIMITED, BACK OFFICE, 9TH FLOOR, JEEVAN PRAKASH, ERNAKULAM, COCHIN-11, REPRESENTED IN THIS PROCEEDINGS BY AUTHORIZED OFFICER, LIC HOUSING FINANCE LTD., BACK OFFICE, JEEVAN PRAKASH, M.G.ROAD, ERNAKULAM. BY ADVS. SRI.R.S.KALKURA SRI.M.S.KALESH SMT.A.V.PRIYA SRI.HARISH GOPINATH SRI.V.VINAY MENON SMT.KVP.JAYALEKSHMY RESPONDENT(S): ------------------------- 1. STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY, GOVT. OF KERALA, SECRETARIAT, TRIVANDRUM. 2. DISTRICT COLLECTOR, COLLECTORATE, KOLLAM. 3. TAHSILDAR (REVENUE RECOVERY), KOLLAM. 4. THE DEPARTMENT OF COMMERCIAL TAXES, REPRESENTED BY THE COMMISSIONER, MUSEUM JUNCTION, THIRUVANANTHAPURAM. 5. THE SALE TAX OFFICER, WC & LT, KOLLAM. 6. M.N.HARIDAS, AGED 57 YEARS, S/O. M.NARAYANAN, THOTTATHIL THARAYIL HOUSE, ASRAMAM P.O., KOLLAM. ...2/- WP(C).No. 7062 of 2010(G) -2- 7. L.VIJAYA KUMARI, AGED 51 YEARS, W/O. K.N.HARIDAS, THOTTATHIL THARAYIL HOUSE, ASRAMAM P.O., KOLLAM. 8. K.JAYAPRAKASH, RESIDING AT PADICKAL VEEDU, ASRAMOM P.O., KOLLAM DISTRICT. R1 TO R5 BY SR. GOVT. PLEADER SRI. C.K. GOVINDAN R7 BY ADVS. SRI.S.SANTHOSH KUMAR SMT.P.LISSY JOSE THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/07/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Mn ...2/- WP(C).No. 7062 of 2010(G) APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : COPY OF THE LOAN OFFER LETTER DATED 17.06.2000 ISSUED BY THE AREA OFFICE OF THE PETITIONER TO THE RESPONDENTS 6 AND 7. EXT.P2 : COPY OF THE MEMORANDUM OF DEPOSIT OF TITLE DEEDS DTD. 11.08.2000 EXECUTED BY THE RESPONDENTS 6 AND 7 IN FAVOUR OF THE PETITIONER. EXT.P3 : COPY OF THE NOTICE DATED 20.06.2006 UNDER SECTION 13(2) OF THE SARFAESI ACT. EXT.P4 : COPY OF THE APPLICATION DATED 20.08.2007 SUBMITTED BY THE PETITIONER UNDER SECTION 14 OF THE SARFAESI ACT. EXT.P5 : COPY OF THE COMMUNICATION ISSUED BY THE 3RD RESPONDENT DATED 16.11.2007. EXT.P6 : COPY OF THE LETTER BEARING NO. DC-3009/2009/WC DATED 09.10.2009 ISSUED BY THE 3RD RESPONDENT AND THE PETITIONER. RESPONDENT'S EXHIBITS : NIL //TRUE COPY// P.A. TO JUDGE Mn S. SIRI JAGAN, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No.7062 of 2010 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 21st day of July, 2011 J U D G M E N T The petitioner is a financing company owned by the Life Insurance Corporation of India. The petitioner initiated proceedings against the respondents 6 to 8 for recovery of the loan amounts taken by them from the petitioner. Proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) has been initiated against them. The petitioner has taken possession of the secured asset. In the meanwhile, the District Collector initiated proceedings against the same property for recovery of Government dues on the ground that the subject property was attached for arrears of sales tax payable. The petitioner therefore seeks the following reliefs: “i) issue a writ of mandamus or any other appropriate writ, order or direction of the nature of mandamus directing the 2nd respondent to render all appropriate assistance to the petitioner to take possession of the property covered by Exhibit P4 application belonging to the respondents 6 and 7 as contemplated under section 14 of the SARFAESI Act.” W.P.(C)No.7062 of 2010 -2- This court has passed an interim order on 24.02.2011 which reads as follows: Pursuant to an interim order issued by this Court on 4.1.2011, possession of the property was taken over by the third respondent and it was already handed over to the petitioner. 2. The petitioner had filed an affidavit stating that, valuation of the property would be approximately Rs.27,40,000/-. It is evident that the liability due under the revenue recovery proceedings initiated by respondents 1 to 3 with respect to arrears of sales tax is a sum of Rs.1,87,244/- as on 31.3.2010, along with interest due thereafter. It is undertaken by the petitioner through the affidavit that on the event of the petitioner being permitted to sell the property, they will clear the above said liability due to respondents 1 to 3. Under that premise, the petitioner seeks permission to conduct sale of the property in question. 3. Heard ; counsel appearing for the petitioner, government pleader as well as counsel for 7th respondent. 4. Considering the facts and circumstances, I am of the view that permission can be granted to the petitioner to proceed with sale of the property, subject to condition that the liability due under the revenue recovery proceedings as stated above, will be cleared payment from the sale proceeds, before appropriating any amount against the liability under loan account. 5. Therefore, the petitioner is permitted to proceed with the sale subject to further orders regarding appropriation of the amount.” In view of the said order, I am inclined to dispose of this writ petition in terms of the interim order with a further direction to the petitioner to complete the sale and pay off the Government dues as directed in the said order within a W.P.(C)No.7062 of 2010 -3- period of two months. Accordingly this writ petition is disposed of with a direction to the petitioner to complete the entire sale proceedings within two months and to pay the dues of the Government first from the sale proceeds. Thereafter, the balance amount shall be adjusted against the loan amounts due to the petitioner from the respondents 6 to 8. If there is any balance amount available, the same shall be returned to the respondents 6 to 8 subject to other attachments in respect of the property, if any. If there are other attachments in the property by any other creditor the balance amount shall be deposited before the appropriate authority to the extent of such liability and only the balance, if any, shall be paid to the respondents 6 to 8. Sd/- S. SIRI JAGAN JUDGE //True copy// P.A. TO JUDGE shg/