Kerala HC criticises Kerala government for delaying recovery of 5.2 billion rupees from PFI

Kerala HC criticises Kerala government for delaying recovery of 5.2 billion rupees from PFI

The Kerala High Court's division bench of Justice A. K. Jayasankaran Nambiar and Justice Mohammed Nias C.P. pulled up the State on December 19 over the delay in recovering damages from the banned Popular Front Of India (PFI) and its office bearers. The government had previously initiated recovery proceedings against PFI in order to recover Rs 5.20 crore, the amount estimated to have been caused by the September flash strike. Despite the issuance of peremptory orders to proceed against the assets of PFI and its office bearers, including the Secretary, the court stated that "nothing substantial" has been done by the State.

The court was informed by the home department that the tax office has said that it is "unfeasible" to complete the entire process within a month. Last month, the government informed the court that the Revenue Department had been given instructions to proceed with the action. The court was promised that the proceedings would be finished within a month.

"On the basis of the requisitions the District Collectors have to serve notice to the arrearing parties through the Revenue Officials as per Kerala Revenue Recovery Act. 7 days prior notice has to be given to the defaulting party for payment of the arrears under Section 7 & 34 of the Revenue Recovery Act and if the dues are not paid within 7 days after serving the notices, then a forfeiture notice under Section 36 has to be issued to the defaulting parties. If the defaulting party does not pay the amount, a notice of auction should be given as per Section 49 (2) which should be duly served and advertised at least 30 days before the date of auction," the State submitted.

Expressing dissatisfaction with the response, the court said: "We find the attitude of the State Government, as discernible from the averments in the paragraphs of the affidavit extracted above, to be wholly unacceptable, and per se disrespectful to the directions of this Court. The State Government cannot adopt such a callous attitude when called upon to implement the directions of this Court especially in matters of public interest and involving destruction of public property." Before adjourning, the court stated unequivocally that the time allotted for compliance with the earlier orders will not be extended past January 31.

The matter has been set for the Additional Chief Secretary's affidavit and personal appearance on December 23.

Case title: Kerala Chamber of Commerce and Industry v. State of Kerala and Malayalavedi v. State of Kerala
Citation: Con.Case(C) 1715/2022
Link: 

https://hckinfo.kerala.gov.in/digicourt/Casedetailssearch/fileview?token=MjE1NzAwMDAyMjIyMDE5XzEwLnBkZg==&lookups=b3JkZXJzLzIwMTk=

 

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