High Court of KeralaSingle JudgeWrit petition allowed in part; sale set aside o...

W.P.(C) No. 509 of 2020

Case / Petition Number:WP(C) No.509/2020

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Gopinath P. Monday
Judgment Date
2024-02-12
Court Decision / Holding
The sale in favour of the 7th respondent is set aside subject to the condition that the amount of Rs.15,10,000 remitted by the 7th respondent before the 3rd respondent shall be returned within one month, with interest at 6% per annum from the date of remittance until payment. The 6th respondent society shall pay the interest if the amount is not paid within the specified period. Ext.P12 is quashed, and if the specified amounts are not paid as directed, the sale will stand confirmed.
Final Disposition
Writ petition allowed in part; sale set aside on terms; directions for refund of the amount deposited and payment of interest; Ext.P12 quashed pending compliance; failure to comply may result in sale confirmation.

Parties to the Case

Appellants / Petitioners

  • Mohan A.K.
  • Prasanna
  • Pranavu
  • Praveen

Respondents

  • State of Kerala represented by Secretary, Ministry of Co-operative Department, Government Secretariat, Government of Kerala, Thiruvananthapuram-695001
  • District Collector, Ayyanthole, Thrissur-680001
  • Sub Collector, Collectorate, Ayyanthol, Thrissur-680001
  • Tahsildar, Chavakkad Taluk, Thrissur-680502
  • Joint Registrar of Co-operative Society (General), Thrissur-680001
  • Engandiyoor Harijan Service Co-operative Society, P.O. Kundaliyoor, Chavakkad, Thrissur-680506, represented by Administrator, Office of Assistant Registrar (General) of Co-operative Societies
  • Suni, aged 48 years S/o Ramakrishnan, Mulakkal House, Engandiyoor, Kundaliyoor, Thrissur-680616
  • K.V.Vijaya, D/o Velayudhan, Karippayi House, Puthan Pedika P.O, (Via), Anthikkad, Thrissur-680331
  • P.P.Anarkkali, W/o. Vijayan, Chirayath House, Vadanapally P.O, Thrissur-680303
  • Pranavu, aged 32 years

Legal Representation & Advocates

Counsels for Petitioners

  • • K.S. Madhusoodanan
  • • M.M. Vinod Kumar
  • • P.K. Rakesh Kumar
  • • K.S. Mizver
  • • M.J. Kirankumar

Counsels for Respondents

  • • S.K. Balachandran
  • • K.A. Salil Narayanan
  • • Dheera A.S. (GP)

Case Synopsis & Summary

The writ petition by Mohanan A.K. challenges the sale of the property belonging to Engandiyoor Harijan Service Co-operative Society (the 6th respondent) in revenue-recovery proceedings that were initiated to recover amounts payable to respondents 8 and 9 (employees). The court notes that Ext.P3 in W.P.(C) No.17080/2014 directed initiation of proceedings under Section 33C(2) of the Industrial Disputes Act, which culminated in selling the society’s property to the 7th respondent. The petitioner argued that the liabilities had already been settled and the society—though defunct—has since been revived and is now managed by an administrative committee; hence the sale was unwarranted. It was argued that the petition had limited locus standi since the petitioner was a member of the 6th society; reliance was placed on Vijayakumar v. District Collector to contend that when liability has been settled, revenue-recovery actions and related sales should be withdrawn or set aside. The Government Pleader supported revival of the society and possession by the society, while the 7th respondent urged that sale could be allowed to stand unless statutory rights were shown. The court ultimately held that the sale could be set aside on fair terms, ordering the return of Rs.15,10,000 deposited by the 7th respondent within a month, with 6% interest until repayment, and quashing Ext.P12 subject to compliance; failure to comply would revert to sale-confirmation.

Provisions of Law Cited

Section 33C(2) of the Industrial Disputes Act

Legal Doctrines & Maxims

  • Locus standi

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners argued that the revenue-recovery liability constituting the basis for sale had been settled, and the 6th respondent society, though defunct, has been revived and is presently under an administrative committee; therefore, the sale of its property to the 7th respondent should be set aside. They challenged lack of locus standi and relied on Vijayakumar v. District Collector to assert that after settlement of liability, revenue-recovery actions and any sale thereunder should be withdrawn or set aside.

Contentions of Respondents

The respondents contended that the 6th respondent society has been revived and is in possession of the property; the sale to the 7th respondent was a valid consequence of pending revenue-recovery actions and the 10th respondent’s bid; no timely objection was raised to the sale, and the petitioner’s challenge should be rejected on grounds of procedure and the ongoing obligations to settle the liabilities.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Vijayakumar v. District Collector2013 (2) KLT 458PositiveThe court cited this decision to support the proposition that when the liability underlying revenue-recovery proceedings has been settled, the proceedings and any sale based on them may be withdrawn or set aside.

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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 MR. JUSTICE GOPINATH P. MONDAY, THE 12[TH] DAY OF FEBRUARY 2024 / 23RD MAGHA, 1945** ## **WP(C) NO. 509 OF 2020** ## **PETITIONER/S:** 1 MOHANAN A.K.,AGED 63 YEARS S/O.KANDAKUTTY,AARI VEEDU,KUNDALIYOOR.P.O, TRISSUR. 2 ADDL.P2.PRASANNA,AGED 55 YEARS W/O. LATE MOHANAN, AARI VEEDU, KUNDALIYOOR P.O., TRISSUR. 3 ADDL.P3. PRANAVU,AGED 32 YEARS S/O. LATE MOHANAN, AARI VEEDU, KUNDALIYOOR P.O., TRISSUR. 4 ADDL.P4. PRAVEEN,AGED 28 YEARS S/O.LATE MOHANAN, AARI VEEDU, KUNDALIYOOR P.O., TRISSUR. (ADDL. P2 TO P4 IMPLEADED AS LEGAL HEIRS OF DECEASED P 1 AS PER ORDER DATED 01-09-2021 IN IA 1/2021 BY ADVS. K.S.MADHUSOODANAN SRI.M.M.VINOD KUMAR SRI.P.K.RAKESH KUMAR SRI.K.S.MIZVER SRI.M.J.KIRANKUMAR ## **RESPONDENT/S:** 1 STATE OF KERALA REPRESENTED BY SECRETARY,MINISTRY OF CO-OPERATIVE DEPARTMENT,GOVERNMENT SECRETARIAT,GOVERNMENT OF KERALA, THIRUVANANTHAPURAM-695001. 2 DISTRICT COLLECTOR, AYYANTHOLE,THRISSUR-680001. 3 SUB COLLECTOR, COLLECTORATE,AYYANTHOLE, TRISSUR-680001. 4 TAHSILDAR, CHAVAKKAD TALUK,TRISSUR-680502. W.P.(C)No.509/2020 2 5 JOINT REGISTRAR OF CO-OPERATIVE SOCIETY(GENERAL),TRISSUR-680001. TRISSUR-680001. 6 ENGANDIYOOR HARIJAN SERVICE CO-OPERATIVE SOCIETY, P.O.KUNDALIYOOR,CHAVAKKAD, TRISSUR,REPRESNETED BY ADMINISTRATOR,OFFICE OF ASSISTANT REGISTRAR(GENERAL)OF CO-OPERATIVE SOCIETIES, MUTHUVATTOOR,CHAVAKKAD-680506. 7 SUNI, AGED 48 YEARS S/O RAMAKRISHNAN,MULAIKKAL HOUSE,ENGANDIYOOR,KUNDALIYOOR,TRISSUR-680616. 8 K.V.VIJAYA, D/O VELAYUDHAN,KARIPPAYI HOUSE, PUTHAN PEDIKA.P.O, (VIA),ANTHIKKAD,TRISSUR-680331. 9 P.P.ANARKKALI, W/O.VIJAYAN,CHIRAYATH HOUSE, VADANAPALLY.P.O,TRISSUR-680303. 10 PRANAVU AGED 32 YEARS SOUGHT TO BE IMPLEADED BY ADVS. SRI.M.M.VINOD KUMAR S.K.BALACHANDRAN SRI.K.A.SALIL NARAYANAN SRI.P.K.RAKESH KUMAR SRI.K.S.MIZVER SRI.M.J.KIRANKUMAR GOVERNMENT PLEADER ## **OTHER PRESENT:** SRI. S K BALACHANDRAN (FOR R6), SRI. K A SALIL NARAYANAN (FOR R7), SRI. DHEERAJ A S (GP) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.509/2020 3 ## **JUDGMENT** This writ petition was filed by one Mohanan A.K., being aggrieved by the fact that certain property belonging to the 6[th] respondent (Engandiyoor Harijan Service Co-operative Society) has been sold in revenue recovery proceedings to recover amounts payable towards salary of respondents 8 and 9. This Court, by Ext.P3 judgment in W.P. (C)No.17080/2014 filed by respondents 8 and 9, had directed initiation of proceedings for recovery of the amounts found due to respondents 8 and 9 under Section 33C (2) of the Industrial Disputes Act. It is accordingly that the property of the 6[th] respondent was sold. It was the case of the petitioner that all the dues of respondents 8 and 9 had been settled and it was not necessary for the revenue recovery authorities to have sold the property of the 6[th] respondent in auction. Pending consideration of the writ petition, the writ petitioner died and his legal heirs have been impleaded as additional petitioners 2, 3 and 4. 2. The learned counsel appearing for additional petitioners would submit that the property of the 6[th] respondent could not have been sold as the entire amounts payable to respondents 8 and 9 had already been paid. It is submitted that late Mohanan A.K., was a member of the 6[th] respondent Society which was defunct and could therefore maintain the writ petition before this Court challenging the W.P.(C)No.509/2020 4 sale of the property of the 6[th] respondent Society in favour of the 7[th] respondent. It is submitted that the wife of late Mohanan, who was impleaded as the additional 2[nd] petitioner is also a member of the Society and is therefore entitled to continue with the writ petition. It is submitted that this Court in _**Vijayakumar**_ v. _**District Collector**_ ; 2013 (2) KLT 458 has held that where the liability in respect of which the revenue recovery proceedings had been settled, the revenue recovery proceedings have to be withdrawn and any sale conducted under the provisions of the Revenue Recovery Act of the property belonging to the defaulter will have to be set aside. 3. The learned Government Pleader would submit that the Society which was defunct has been revived and an administrative committee is now in office. Adv. S.K.Balachandran appears for the 6[th] respondent Society representing the Convenor of the Administrative Committee. It is submitted that the property in question is still in the possession of the Society and has not been handed over to the 7[th] respondent who is the auction purchaser. 4. The learned counsel appearing for the 7[th] respondent would submit that, after the revenue recovery proceedings were initiated, neither the Society nor any person claiming to be interested in the affairs of the Society had come forward to challenge the proceedings and it was only when the property of the 6[th] respondent Society was sold that W.P.(C)No.509/2020 5 objections were raised regarding the sale of the property. It is submitted that no objection was raised within the time and the 7[th] respondent had remitted a sum of Rs.15,10,000/- towards the purchase price on 4.6.2018. It is submitted that, however, without standing on any technicality, the 7[th] respondent would be satisfied if the amount of Rs.15,10,000/- is returned to the 7[th] respondent together with interest at the rate of 12% per annum. 5. Having heard the learned counsel appearing for the petitioner, the learned Government Pleader, the learned counsel appearing for the 6[th] respondent and the learned counsel appearing for the 7[th] respondent, I am clear in my mind that the petitioner has not made out any case for interference with the sale proceedings. It is atleast doubtful as to whether the original writ petitioner (now represented by additional petitioners 2, 3and 4) even had locus standi to challenge the sale in respect of the property of the 6[th] respondent on account of the fact that he was a member of the 6[th] respondent. However, this court cannot be oblivious of the fact that the liability in respect of which the property was sold has been settled and also the fact that the 6[th] respondent is a Harijan Service Co-operative Society which was defunct. This Court also cannot shut its eyes to the fact that the property which was sold to the 7[th] respondent continues to be in the possession of the 6[th] respondent Society and presently an administrative committee is managing the W.P.(C)No.509/2020 6 affairs of the 6[th] respondent Society. Therefore, considering the extremely fair stand taken by the learned counsel appearing for the 7[th] respondent, I am of the opinion that the sale in favour of the 7[th] respondent can be set aside subject to the condition that the amount of Rs.15,10,000/- remitted by the 7[th] respondent before the 3[rd] respondent shall be returned to him by the 3[rd] respondent within a period of one month from the date of receipt of a certified copy of this judgment. Since the setting aside of the sale in favour of the 7[th] respondent is to the benefit of the 6[th] respondent Society, I further direct that the 6[th] respondent Society shall pay interest equivalent to 6% per annum from the date on which the 7[th] respondent deposited the money before the 3[rd] respondent till the amount is paid to the 7[th] respondent by the 3[rd] respondent. Subject to the compliance of the above said directions, Ext.P12 will stand quashed. If the amounts are not paid as directed above and within the time as specified above, the sale as per Ext.P12 will stand confirmed. The interest will be payable as above from 4.6.2018 till the date on which the amount is returned to the 7[th] respondent by the 3[rd] respondent. Ordered accordingly. Sd/- **GOPINATH P.** **JUDGE** acd W.P.(C)No.509/2020 7 ## **APPENDIX OF WP(C) 509/2020** RESPONDENT EXHIBITS Exhibit R6(a) THE PHOTOCOPY OF THE RELEVANT PAGE OF THE MEMBERSHIP BOOK OF THE 6TH RESPONDENT Exhibit R6(b) A PHOTOCOPY OF THE ORDER OF THE 5TH RESPONDENT DATED 22/12/2023 PETITIONER EXHIBITS EXHIBIT P1 PHOTOCOPY OF THE IDENTITY CARD OF THE PETITIONER EXHIBIT P2 PHOTOCOPY OF THE ROUGH SKETCH OF THE PROPERTY EXHIBIT P3 PHOTOCOPY OF THE JUDGMENT IN W.P(c)NO.17080/14 DATED 29.8.2016 OF THE HON'BLE HIGH COURT. EXHIBIT P4 PHOTOCOPY OF THE COMPLAINT DATED 16-6-18 TO THE 2ND RESPONDENT EXHIBIT P4 PHOTOCOPY OF THE THE RECEIPT BEARING NO.G7/18740/18 DATED 16.6.18. EXHIBIT P5 PHOTOCOPY OF THE REPORT DATED 21.6.18 BEARING NO.CKD 986/18 SUBMITTED BY ASSISTANT REGISTRAR(GENERAL)CHAVAKKAD TO THE 5TH RESPONDENT. EXHIBIT P6 PHOTOCOPY OF THE RECEIPT DATED 6-7-18 EXHIBIT P7 PHOTOCOPY OF THE RECEIPT DATED 6.7.18 EXHIBIT P8 PHOTOCOPY OF THE LETTER DATED 20.8.18 BEARING NO.H.M.5012/2018. EXHIBIT P9 PHOTOCOPY OF THE JUDGMENT IN W.P(C)NO.19330/2018 DATED 9.10.2018 OF THE HON'BLE HIGH COURT EXHIBIT P-10 PHOTOCOPY OF THE LETTER BEARING NO.IR(1)3438/10 DATED 17-10-2018 EXHIBIT P11 PHOTOCOPY OF THE REQUEST OF THE PETITIONER DATED 26.2.2019 FOR WITHDRAWAL OF ALL W.P.(C)No.509/2020 8 FURTHER PROCEEDINGS. EXHIBIT P12 PHOTOCOPY OF THE ORDER BEARING NO.B110515/18 DATED 21.12.2019 ISSUED BY 3RD RESPONDENT. EXHIBIT P13 PHOTOCOPY OF THE LETTER BEARING NO.R51630/2016 DATED 25/11/2019 RESPONDENT EXHIBITS EXHIBIT R7A TRUE COPY OF THE SKETCH OF THE PROPERTY AS CERTIFIED BY THE VILLAGE OFFICER, ENGANDIYOOR. EXHIBIT R7B TRUE COPY OF THE AUCTION MAHAZAR PREPARED BY THE DEPUTY TAHSILDAR. EXHIBIT R7C TRUE COPY OF THE SALE NOTICE UNDER SEC.49() OF THE REVENUE RECOVERY ACT ALONG WITH THE PAPER PUBLICATIONS. EXHIBIT R7D TRUE COPY OF THE NOTICE PUBLISHED BY THE 'SAMRAKSHANA SAMITI".