IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR TUESDAY, THE 1ST APRIL 2008 / 12TH CHAITHRA 1930 WP(C).No. 31731 of 2007(C) -------------------------- PETITIONER: ------------ BRAHAMAMANGALAM GRAMASWARAJ SERVICE CO-OP.BANK LTD. NO. 2966, CHEMPU, VAIKOM, KOTTAYAM REPRESENTED BY ITS SECRETARY. BY ADV. SRI.P.P.JACOB SRI.N.T.SATHYAVAN RESPONDENTS: ------------- 1. THE DISTRICT COLLECTOR CIVIL STATION, KOTTAYAM 2. M.K.MUHAMMED,S/O. KHADERKUTTY THATTAMPARAMBIL, CHEMPU, VAIKOM. 3. SATHYAN,S/O.KRISHNAN KOCHUPARAMBU HOUSE CHEMPU P.O. VAIKOM, KOTTAYAM. R3 BY ADV. SRI.N.RAGHURAJ SMT.K.AMMINIKUTTY R1 BY G.P. SRI.K.P.PRADEEP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 01/04/2008, THE COURT ON 01/04/2008 DELIVERED THE FOLLOWING: APPENDIX PETITIONER'S EXHIBITS: P1: TRUE PHOTOCOPY OF AWARD IN ARC 4781/05 DT.17.6.05. P2: TRUE COPY OF JUDGMENT IN WPC NO.31790/06 DT.6.8.07. P3: TRUE PHOTOCOPY OF NOTICE OF SALE AND MAHAZER PREPARED BY R2 DT.16.8.07. P4: TRUE PHOTOCOPY OF JUDGMENT IN WPC NO.25275/07 DT.24.8.07. P5: TRUE COPY OF PETITION FILED BEFORE R1 DT.30.8.07. P6: TRUE COPY OF ORDER PASSED BY R1 DT.16.10.07. TRUE COPY PA TO JUDGE C.N.RAMACHANDRAN NAIR, J. .................................................................... W.P.(C) No.31731 of 2007 .................................................................... Dated this the 1st day of April, 2008. JUDGMENT The petitioner is challenging sale of second respondent's property to third respondent in proceedings for recovery of arrears of sales tax. According to the petitioner, the property was mortgaged to the petitioner and an amount of about Rs.2 lakhs is due to it. Sale in 2006 was at a price of Rs.60,800/- remitted by the third respondent. It is submitted that sale is not confirmed and it is at a price much below the market value which is clear from the fact that petitioner advanced substantial loan amount (now Rs.2 lakhs) against security of this property. Further, substantial arrears of sales tax is still due to the State. In the circumstances and in view of the claim of the petitioner-Bank under Section 32 of the Co-operative Societies Act and since sale is not confirmed, sale is set aside with direction to the petitioner to repay the amount deposited by the third respondent together with interest at 15% per annum within a period of one month from today. The petitioner's claim of priority will be raised before the first respondent and if petitioner has priority, the property should be left to the petitioner for sale in public auction for recovery. If the Collector finds that the State has 2 priority, the property should be sold in public auction after due notice and out of the sale proceeds, the amount paid by the petitioner to the third respondent as above will be paid to the petitioner and balance will be first appropriated towards arrears of sales tax and excess if any also should be paid to the petitioner. However, if defaulter settles liability to petitioner and to State, property should be reconveyed to him. W.P. is disposed of as above. C.N.RAMACHANDRAN NAIR Judge pms