Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN TUESDAY, THE 19TH DAY OF DECEMBER 2023 / 28TH AGRAHAYANA, 1945 WP(C) NO. 42750 OF 2023 PETITIONERS:
1 AGI GEORGE AGED 27 YEARS D/O. GEORGE KURIAN, MUNDACKAL HOUSE, MADAKKATHANAM P.O., VAZHAKULAM, MUVATTUPUZHA., ERNAKULAM DISTRICT., PIN - 686670 2 ALEX GEORGE AGED 25 YEARS S/O. GEORGE KURIAN MUNDACKAL HOUSE, MADAKKATHANAM P.O., VAZHAKULAM, MUVATTUPUZHA., ERNAKULAM DISTRICT., PIN - 686670 3 ANNIE GEORGE AGED 57 YEARS W/O. GEORGE KURIAN MUNDACKAL HOUSE, MADAKKATHANAM P.O., VAZHAKULAM, MUVATTUPUZHA., ERNAKULAM DISTRICT., PIN - 686670 BY ADVS.
JOMY GEORGE M.J.BENNY R.PADMARAJ SAJEEVAN V.T.
CHITRA N. DAS ASWIN ASHOK V.
RISHAB S.
RONA ANN SIBY RESPONDENTS:
1 THE DEPUTY TAHSILDAR (R.R) KERALA FINANCIAL CORPORATION, RBI JUNCTION, KALOOR, ERNAKULAM - 682 017.
2 THE DEPUTY TAHSILDAR (R.R) KERALA FINANCIAL CORPORATION, PERUMBAVOOR, ERNAKULAM, PIN - 683542 3 THE MANAGER KERALA FINANCIAL CORPORATION, BRANCH OFFICE, 1ST FLOOR, GEORGE TOWN, VENGALLOOR.P.O, THODUPUZHA IDUKKI DISTRICT, PIN - 685608
WP(C) NO. 42750 OF 2023 2 4 KERALA FINANCIAL CORPORATION 1ST FLOOR, GRACE BUILDING, VIKAS BHAVAN, P.O, KANAKA NAGAR, VELLAYAMBALAM, THIRUVANANTHAPURAM, REPRESENTED BY ITS CHAIRMAN,, PIN - 695033 SMT DHANYA ASOKAN-SC SRI.SUNIL K.KURIAKOSE GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 42750 OF 2023 3 JUDGMENT The petitioners impugn Ext.P8 calculation prepared by the Kerala Financial Corporation (KFC) with respect to collection charges, Demand Notice Fee (DNF) and such other, asserting that he has already settled the loan account with them availed earlier, under a One Time Settlement.
They assert that only 1% of the amounts paid by them under the settlement, can be now charged as recovery charges, along with the applicable sales tax and other fees; and thus pray that Ext.P8 - which contains a much larger amount than they are liable for - be quashed and the KFC be directed to close the account, by permitting them to remit the eligible amounts as per law.
2.
In response to the afore submissions of Sri.S.Rishab – learned counsel for the
WP(C) NO. 42750 OF 2023 4 petitioners, the learned Standing Counsel for the “KFC” – Smt.Dhanya Ashok, submitted that the petitioners, after the revenue recovery notice was issued to them, paid Rs.4,43,92,000/-, which was the figure arrived at under a settlement because, the original amount is much larger. She submitted that, therefore, the collection charge liable to be paid by them is 1% of the said figure, along with 18% GST and incidental expenses, including ‘DNF’. She explained that the total in such manner is Rs.5,23,826/-; and conceded that the calculation in Ext.P8 therefore, is not accurate. She submitted that, in such scenario, the “KFC” is willing to issue the petitioners a fresh calculation.
3.
Sri.S.Rishab, at this time, submitted that his clients are willing to pay the amounts as suggested by Smt.Dhanya Ashokan; and prayed
WP(C) NO. 42750 OF 2023 5 that once it is done, the account be directed to be closed by the “KFC”; and the title and loan documents be directed to be released by them to his clients.
4.
The learned Government Pleader – Sri.Sunil Kumar Kuriakse, conceded that the law is now well settled that the Revenue can only charge 1% of the total amount paid by the petitioner, under settlement directly to the “KFC” as recovery charges.
In the afore circumstances, this writ petition is ordered with the following directions:
a) Ext.P8
will
stand
quashed;
and consequently, the “KFC” will furnish the petitioners a fresh calculation in terms of the afore submissions of Smt.Dhanya Ashokan, within a period of two weeks from the date of receipt of a
WP(C) NO. 42750 OF 2023 6 copy of this judgment.
b) On the afore calculation being received by the petitioner, he will be liberty to pay the same, within a period of one month thereafter.
c) If the petitioner closes the account in terms of the afore directions, then “KFC” will return the title and loan documents to them without any avoidable delay, but not later than one week thereafter.
Sd/- DEVAN RAMACHANDRAN JUDGE SAS
WP(C) NO. 42750 OF 2023 7 APPENDIX OF WP(C) 42750/2023 PETITIONERS’ EXHIBITS:
Exhibit P1 TRUE COPY OF THE SECTION 7 NOTICE ISSUED TO THE 1ST PETITIONER BY THE RESPONDENTS 1 TO 3 ON 21.02.2018.
Exhibit P2 TRUE COPY OF THE SECTION 34 NOTICE DEMANDING AN AMOUNT OF RS. 4,02,14,983/- FROM THE 1ST PETITIONER ISSUED BY THE RESPONDENTS 1 AND 2 ON 21.02.2018.
Exhibit P3 TRUE COPY OF THE JUDGMENT DATED 04.04.2018 PASSED BY THIS HON'BLE COURT IN W.P.(C) NO.
8233/2018 Exhibit P4 TRUE COPY OF THE CERTIFICATE DATED 07.11.2023 ISSUED BY THE 3RD RESPONDENT.
Exhibit P5 TRUE COPY OF THE APPLICATION DATED 06.11.2023 SUBMITTED BY THE PETITIONERS TO THE 1ST RESPONDENT Exhibit P6 TRUE COPY OF THE LETTER DATED 20.11.2023 ISSUED BY THE 1ST RESPONDENT TO THE 3RD RESPONDENT.
Exhibit P7 TRUE COPY OF THE LETTER DATED 30.11.2023 ISSUED BY THE 3RD RESPONDENT TO THE 1ST RESPONDENT Exhibit P8 TRUE COPY OF THE CALCULATION STATEMENT DATED NIL OBTAINED BY THE PETITIONERS FROM THE OFFICE OF THE 1ST RESPONDENT