High Court of KeralaDivision BenchReview Petition rejected

Kerala State Backward Classes Development Corporation Limited v Bhaskaran K.P. and State of Kerala and Assistant Educational Officer Kunnumel and District Educational Officer

Case / Petition Number:RP.801/12 in WA.220/2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Ashok Bhushan
  • V. Chitambaresh
Judgment Date
2014-09-26
Court Decision / Holding
Review Petition is rejected; the earlier Division Bench's view that Article 112 does not apply to KSBCDC stands and no error has been shown warranting interference by the High Court.
Final Disposition
Review Petition rejected

Parties to the Case

Appellants / Petitioners

  • Kerala State Backward Classes Development Corporation Limited

Respondents

  • Bhaskaran K.P., S/O. KunjuRaman Nair, UD Clerk, AEO’s Office Kunnummel, Kunnummel P.O., Kakkkattil Vattoly via Kozhikode District-673 525
  • State of Kerala, represented by the Secretary to Government
  • Assistant Educational Officer, Kunnumel, Kunnummel P.O., Kakkkatil Vattoly via Kozhikode District-673 525
  • District Educational Officer, Office of the DD Education, Manamchira Kozhikode-673 525

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Sri. Jayapradeep. V, SC, KSBCDC

Counsels for Respondents

  • • Sri P.I. Davis
  • • Sri John Joseph (Roy)

Case Synopsis & Summary

This is a review petition filed by the Kerala State Backward Classes Development Corporation Limited (KSBCDC) challenging a Division Bench’s 30 March 2012 order in WA No. 220 of 2012, which held that Article 112 of the Limitation Act, 1963 would not apply to a loan recovery dispute involving KSBCDC. The petitioner contends that it functions within the meaning of Article 12 of the Constitution, and as a State entity it should receive the benefits of Article 12 and the corresponding limitation regime under Article 112. The Division Bench had reasoned that the terms “Central Government” or “State Government” in Article 112 are not interpreted to include corporations, relying on precedents such as Indira Nigam v. State of U.P. and Nav Rattanmal, which discuss the scope of Statehood and the application of Article 112 to government claims. The respondents argued that theLimitation Act’s government-oriented periods cannot automatically extend to state corporations, and that the State within Article 12 does not equate to “State Government” or “Central Government” in Article 112. After considering the submissions, the Kerala High Court held that there is no error in the earlier judgment, and rejected the Review Petition, maintaining that KSBCDC cannot be treated as a State for the purposes of Article 112. The matter was decided by a bench comprising Acting Chief Justice Ashok Bhushan and Justice V. Chitambaresh.

Provisions of Law Cited

Article 112 of the Limitation Act, 1963Article 12 of the Constitution of IndiaLimitation Act, 1963General Clauses Act, 1897, Section 3(23)Article 111 of the Limitation ActArticle 149 of the Limitation Act, 1908

Submissions & Arguments

Contentions of Appellants / Petitioners

Applicant contends KSBCDC is functioning within Article 12 and, as a State, should receive the benefit of Article 12 and thus Article 112 of the Limitation Act should be applicable to the recovery of funds/dues. The mere claim of Statehood under Article 12 should translate into eligibility for Article 112 benefits, especially since the Corporation acts as a State-like authority in financial matters.

Contentions of Respondents

Respondents contend that Article 112 applies only to Central Government or State Government. The terms ‘Central Government’ and ‘State Government’ do not include corporations or authorities like KSBCDC. They rely on judicial interpretations (including Indira Nigam) that the limitations framework for government claims does not automatically extend to government-controlled corporations; hence KSBCDC cannot be treated as a ‘State’ for the purpose of Article 112.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Indira Nigam v. State of U.P.Laws (ALL) 2013 (10) 119PositiveCited to support the proposition that the term ‘State Government’ under Article 112 does not automatically include corporations; used to illustrate that the KSBCDC cannot be treated as ‘State’ for Article 112 purposes.
Nav Rattanmal and others v. State of RajasthanAIR 1961 SC 1704PositiveCited regarding the rationale of special limitation provisions for government claims; used to discuss the interpretation of ‘Central Government’/‘State Government’ and to distinguish governmental entities from local authorities.

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Extracted Judgment Text

Exact text extracted from official judgment records.

**IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT:** **THE HONOURABLE THE AG.CHIEF JUSTICE MR.ASHOK BHUSHAN & THE HONOURABLE MR.JUSTICE V.CHITAMBARESH** **FRIDAY, THE 26TH DAY OF SEPTEMBER 2014/4TH ASWINA, 1936 RP.No. 801 of 2012 () IN WA.220/2012 --------------------------------------** **AGAINST THE ORDER/JUDGMENT IN WA 220/2012 of HIGH COURT OF KERALA DATED 30.3.2012** **REVIEW PETITIONER(S): ---------------------** **KERALA STATE STATE BACKWARD CLASSES DEVELOPMENT CORPORATION LIMITED DISTRICT OFFICE, KOZHIKODE REPRESENTED BY ITS DIKSTRICT MANAGER, P.M.KUTTY ROAD ERANJIPPALAM P.O., KOZHIKODE-673 525.** **BY ADV. SRI.JAYAPRADEEP. V, SC, KSBCDC** **RESPONDENT(S):** **--------------** **1. BHASKARAN.K.P., S/O.KUNJIRAMAN NAIR, UD CLERK, AEO'S OFFICE KUNNUMMEL, KUNNUMMEL P.O., . KAKKATTIL VATTOLY VIA KOZHIKODE DISTRICT-673 525.** **2. STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT SECRETRIAT, THIRUVANANANTHAPURAM.** **3. THE ASSISTANT EDUCATIONAL OFFICER, KUNNUMMEL, KUNNUMMEL P.O., KAKKATTIL VATTOLY VIA KOZHIKOPDE DISTRICT-673 525.** **4. THE DISTRICT EDUCATIONAL OFFICER, OFFICE OF THE DD EDUCATION, MANAMCHIRA KOZHIKODE-673 525.** **R2 to R4 BY SR.GOVERNMENT PLEADER SRI.P.I.DAVIS BY SRI.JOHN JOSEPH(ROY)** **THIS REVIEW PETITION HAVING COME UP FOR ADMISSION ON 26-09-2014, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:** ## **ASHOK BHUSHAN, Ag.CJ & V.CHITAMBARESH , J ----------------------------------------------** ## **R.P.No. 801 of 2012 in W.A.No. 220 of 2012** ## **----------------------------------------------** ## **Dated this the 26[th] September, 2014** ## **O R D E R** ## **Ashok Bhushan, Ag.CJ.** This Review Petition is filed by the applicant/appellant to review the judgment dated 30[th] March, 2012 in W.A.No.220 of 2012. The Writ Appeal was dismissed by the Division Bench after hearing learned counsel for the appellant. The Division Bench in its judgment has held that Article 112 of the Limitation Act, 1963 shall not be attracted and the appellant cannot claim that the loan disbursed by the appellant is covered by Article 112 of the Limitation Act. 2. Learned counsel for the applicant, in support of the application, contended that the applicant is functioning within the meaning of Article 12 of the Constitution of India. He submits that since the applicant is the State, it 2 _**RP.801/12**_ ought to have extended the benefit of Article 12 of the Constitution of India. 3. We have considered the submissions. The mere fact that the applicant claims to be State within the meaning of Article 12 of the Constitution of India does not lead to the conclusion that the applicant can claim benefit of Article 112 of the Limitation Act. Article 112 of the Limitation Act uses the words 'State Government' and 'Central Government'. The said issue has been considered by several High Courts and it has been held that the State within the meaning of Article 112 is not used in Article 112 of the Limitation Act. Reference is made to the judgment in _**Indira Nigam v. State of U.P**_ (Laws (ALL) 2013 (10) 119). Paragraphs 8, 9 and 10 of the judgment read as under: _“8. On the other hand, Sri Dev Brat Mukherjee, learned Counsel for the petitioner submitted that the period of limitation for recovery of dues by the Corporation shall be only three years as per Limitation Act either_ 3 _**RP.801/12**_ _Article 19 or Article 21. Sri Mukherjee further submits that Article 112 shall not be applicable in the present case since action has not been taken by the State Government rather recovery certificate has been issued by the Corporation. It is submitted that the benefit of Article 112 cannot be extended to the Corporation and the said Article is applicable only with regard to Central Government or any State Government. Whether Article 112 of the Limitation Act can be taken recourse by the corporation in the facts of the present case, is the moot question to be answered. A particular period of limitation for filing a suit by the Central government or State Government has been provided for in the Statute of Limitation for a purpose and object. The challenge to Article 149 of the Limitation Act, 1908 which was pari - materia to Article 113 of the 1963 Act, was considered and repelled by the apex Court in AIR 1961 SC 1704 Nav Rattanmal and others Vs. State of Rajasthan. While noticing the purpose and object of Article 149 of the Limitation Act, apex Court laid down following in paragraph 10:_ 4 _**RP.801/12**_ _“10...... It is with this background that the question of the special provision contained in art. 149 of the Act has to be viewed. First, we have the fact that in the case of the Government, if a claim becomes barred by limitation, the loss falls on the public, i.e., on the community in general and to the benefit of the private individual who derives advantage by the lapse of time. This itself would appear to indicate a sufficient ground for differentiating between the claims of an individual and the claims of the community at large. Next, it may be mentioned that in the case of governmental machinery, it is a known fact that it does not move as quickly as in the case of individuals. Apart from the delay occurring in the proper officers ascertaining that a cause of action has accrued - Government being an impersonal body, before a claim is launched there has to be inter - departmental correspondence, consultations, sanctions obtained_ 5 _**RP.801/12**_ _according to the rules. These necessarily take time and it is because of these features which are sometimes characterised as red - tape that there is delay in the functioning of government offices.......”_ _The words “Central Government” or “State Government” have not been defined in the Limitation Act, 1963. “The Government” has been defined in Section 3(23) of the General Clauses Act 1897 in following words:_ _“(23) “Government” or “the Government” shall include both the Central Government and any State Government;”_ _9. The submission of Chandra Shekhar Singh is that in the words “Central Government or “any State Government” used under Article 112, the Corporations owned and controlled by the Central Government or State Government have also to be read._ _10. The word “State” has been defined under Article 12 of the Constitution of India. Definition of word the 'State' under Article 12_ 6 _**RP.801/12**_ _is inclusive definition which includes the Government, Parliament of India and the Government and Legislature of each States and all local or other authorities within the territory of India or under the control of the Government of India. The definition of the word “the State” as contained in part II of the Constitution of India is for purpose of part III and Part IV of the Constitution of India. Article 12 itself indicates that the word “the State” is a word of wider definition and it encompasses in it other authorities under the control of the Government of India. The Corporation, respondent no.5 may be an authority within the meaning of Article 12 but the question is as to whether the words “Central Government” and “State Government” used in Article 112 of the Limitation Act, 1963 should be read as the word “State”. When the Limitation Act, 1963 was enacted the Parliament was well aware of the concept of Central government, State Government and concept of “State”. The Limitation Act, 1963 itself indicates that the word “Local Authority” is not included within the meaning of Central Government or State_ 7 _**RP.801/12**_ _Government which is apparent from the fact that a separate limitation period has been provided for local authority in the Limitation Act under Article 111 Article, which is quoted below:_ _111. By or on behalf of any local authority for possession of any public street or road or any part thereof from which it has been dispossessed or of which it has discontinued the possession. Thirty years The date of the dispossession or discontinuance._ _Had the Legislature intended to include local authority within the meaning of State Government or Central government under Article 112, there was no occasion to provide for separate limitation period for local authority. It is thus, clear that local authority was never intended by the Legislature to be included in words 'Central Government' or 'State Government' although the local authority is covered within the definition of 'State' under Article 12 of the Constitution of India. Thus, any authority/Corporation_ 8 _**RP.801/12**_ _which may be State within the meaning of Article 12 does not ipso facto become entitled to be treated as Central Government or State Government within the meaning of Article 12 of the Constitution of India.”_ We do not find any error in the judgment, which may warrant exercise of jurisdiction of this Court. The Review Petition is rejected. **ASHOK BHUSHAN ACTING CHIEF JUSTICE** **V.CHITAMBARESH JUDGE** vgs