Boby Varghese vs. Kerala Financial Corporation
Held
The Court held that when amounts are paid directly to the requisitioning authority and not collected through revenue recovery action, only 1% collection charges are leviable under Rule 5(3) of the Kerala Revenue Recovery Rules, 1968. Since the petitioner had already paid 1%, the demand for 7.5% + GST was illegal. The respondents were directed to return documents and lift attachments.
Facts
The petitioner, a partner in a firm, availed a loan from Kerala Financial Corporation (KFC). After KFC recovered some dues by selling properties and the petitioner settled the remaining under a One Time Settlement, KFC demanded an additional 7.5% + GST collection charges for earlier remittances, refusing to return documents or lift attachments until paid. The petitioner contended that only 1% collection charges were due as the amounts were not collected through revenue recovery action.
Key Issues
Whether revenue recovery authorities are entitled to levy 7.5% collection charges when amounts were not collected through revenue recovery action but paid directly, or if only 1% is applicable as per Rule 5(3) of the Kerala Revenue Recovery Rules, 1968.
Sections Cited
Rule 5(3) of the Kerala Revenue Recovery Rules, 1968
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH THURSDAY, THE 31ST DAY OF MARCH 2022/10TH CHAITHRA, 1944 WP(C) NO. 8756 OF 2022 PETITIONER: BOBY VARGHESE, AGED 69 YEARS S/O. LATE M U VARKEY, PARTNER, M/S. VEMBANAD WATER SPORTS, RESIDING AT 2 B, VEGALAND PETUNIA, SASTHA TEMPLE ROAD, KALOOR P.O., COCHIN 682 017. BY ADVS. K.K.JOHN ASISH K.JOHN RESPONDENTS: 1 KERALA FINANCIAL CORPORATION, REPRESENTED BY THE BRANCH MANAGER, BRANCH OFFICE ALAPPUZHA, KUMARANASSAN SAMARAKA MANDIRAM, COURT ROAD, ALAPPUZHA 688 001. 2 THE DEPUTY TAHSILDAR, REVENUE RECOVERY, KERALA FINANCIAL CORPORATION, K.F.C. ALLEPPEY, COURT ROAD, ALAPPUZHA 688 001. BY ADVS. M.R.VENUGOPAL DHANYA P.ASHOKAN S. MUHAMMAD ALIKHAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.03.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P.(C) No.8756/2022 : 2 : N. NAGARESH, J. ````````````````````````````````````````````````````````````` W.P.(C) No.8756 of 2022 ````````````````````````````````````````````````````````````` Dated this the 31st day of March, 2022 J U D G M E N T ~ ~ ~ ~ ~ ~ ~ ~ ~ The petitioner has approached this Court seeking to direct the respondents
The judgment continues below.
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