Karnataka High Court
Nagraj And Ors vs The Karnataka State And Ors on 21 November, 2024
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2024:KHC-K:8823
WP No. 200386 of 2022
IN THE HIGH COURT OF KARNATAKA
KALABURAGI BENCH
DATED THIS THE 21ST DAY OF NOVEMBER, 2024
BEFORE
THE HON'BLE MR. JUSTICE S.R. KRISHNA KUMAR
WRIT PETITION NO.200386/2022(GM-KSFC)
BETWEEN:
1. NAGRAJ S/O. MADIWALAPPA ALLAD
AGE 46 YEARS
OCC: AGRICULTURE
2. POOJA W/O. NAGARAJ ALLAD
AGE ABOUT: 41 YEARS
OCC: HOUSEHOLD
3. NIDHI D/O. NAGARAJ ALLAD
AGE: 17 YEARS
Digitally U/G. OF MOTHER - PETITIONER NO. 2
signed by
LUCYGRACE
Location: High 4. ANURAG S/O. NAGARAJ ALLAD
Court Of AGE: 12 YEARS
Karnataka
U/G. OF MOTHER - PETITIONER NO.2
ALL R/O. J.R. NAGAR,
KAILAS NAGAR ROAD,
BEHIND MOUNT MERCY COLLEGE,
KALABURAGI
...PETITIONERS
(BY SRI HARSHAVARDHAN R. MALIPATIL, ADVOCATE)
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WP No. 200386 of 2022
AND:
1. THE KARNATAKA STATE
FINANCIAL CORPORATION,
KSFC BHAVAN, TIMMAIAH ROAD,
BENGALURU-560 052
BY ITS CHAIRMAN & MANAGING DIRECTOR
2. THE KARNATAKA STATE FINANCIAL CORPORATION
BRANCH OFFICE, OPP. HINDI PRACHAR SABHA
KALABURAGI - 585 102.
BY ITS ASST. GENERAL MANAGER
3. THE DEPUTY COMMISSIONER,
MINI VIDHAN SOUDHA,
KALABURAGI - 585 102.
4. THE SPL. TAHASILDAR,
KSFC RECOVERY OF GOVT DUE,
KALABURAGI - 585 105.
...RESPONDENTS
(BY SRI SHIVANAND PATIL, ADV., FOR R1 & R2;
SRI G.B. YADAV, HCGP, FOR R3 & R4)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A
WRIT OF CERTIORARI QUASHING THE RECOVERY CERTIFICATE
DATED 12.08.2015 ISSUED BY THE RESPONDENT NO.1 VIDE
ANNEXURE - E, IN SO FAR AS IT PERTAINS TO PETITIONERS
AND A WRIT OF CERTIORARI QUASHING ORDER OF REJECTION
OF REPLY OF THE PETITIONERS DATED 24.11.2021 BEARING
NO.PÀgÁºÀ¸/À «vÀP/À EvÀg/É 528/21-22 PASSED BY RESPONDENT NO.4 VIDE
ANNEXURE - H AND A WRIT OF CERTIORARI QUASHING THE
ORDER OF FORFEITURE AND CHANGE OF REVENUE ENTRIES
DATED 24.11.2021 BEARING NO.PÀgÁºÀ¸/À «vÀP/À EvÀg/É 2850 /522/PÀ/21-22
ISSUED BY RESPONDENT NO.4 VIDE ANNEXURE-J, IN SO FAR
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WP No. 200386 of 2022
AS IT PERTAINS TO PETITIONERS AND THEIR PROPERTIES ARE
CONCERNED.
THIS PETITION, COMING ON FOR FINAL HEARING, THIS
DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
ORAL ORDER
(PER: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR)
1. In this petition, petitioner seeks for the following reliefs:-
" i) 1. A writ of certiorari quashing the recovery certificate dated 12-08-2015 issued by the Respondent No.1 vide Annexure E, in so far as it pertains to Petitioners, in the interest of justice and equity.
ii. A writ of certiorari quashing the order of rejection of reply of the Petitioners dated 24.11.2021 bearing No.PÀgÁºÀ¸/À «vÀP/À EvÀg/É 528/21-22 passed by Respondent No.4 vide Annexure H, in the interest of justice and equity.
ili. A writ of certiorari quashing the order of forfeiture and change of revenue entries dated 24.11.2021 and bearing No. PÀgÁºÀ¸/À «vÀP/À EvÀg/É 2850PÀ/522/21-22 issued by the -4- NC: 2024:KHC-K:8823 WP No. 200386 of 2022 Respondent No.4 vide Annexure J, in so far as it pertains to petitioners and their properties are concerned, in the interest of justice and equity."
2. Heard learned counsel for the parties and perused the material on record.
3. A perusal of the material on record will indicate that pursuant to the request made by respondents 1 and 2
- KSFC for alleged default of loan availed by M/s. Mahanteshwara Dall Industries, to which the petitioners were neither borrowers nor guarantors, the 3rd respondent
- Deputy Commissioner issued a communication dated 12.09.2015 directing the 4th respondent - Tahsildar to take steps for recovery of the amounts due as arrears of land revenue.
4. It is contended by the learned counsel for petitioners that in the absence of mandatory procedure prescribed under Section 32G of the State Financial Corporation Act, 1951 (for short 'the SFC Act') being followed and without there being any certificate issued by -5- NC: 2024:KHC-K:8823 WP No. 200386 of 2022 the State Government in this regard, the 4th respondent - Tahsildar did not have jurisdiction or authority of law to issue the impugned Notice proposing to initiate proceedings for recovery by treating the same as arrears of land revenue, which is contrary to the provisions of Section 32G of the SFC Act and consequently, the impugned notice deserves to be quashed.
5. Per contra, learned counsel for respondents 1 and 2 - KSFC would support the impugned notice and reiterating the various contentions urged in the statement of objections, submit that there is no merit in the petition and that the same is liable to be dismissed.
6. A perusal of the material on record, in particular, the statement of objections containing the correspondence between the State Government and KSFC as well as the documents produced by the petitioners, which also contain the correspondence will clearly indicate that the mandatory procedure prescribed under Section 32G of the SFC Act had not been followed, in as much as, any -6- NC: 2024:KHC-K:8823 WP No. 200386 of 2022 certificate was issued by the State Government before respondents 3 and 4 took necessary steps to recover the alleged amounts due from the petitioner as contemplated under Section 32G of the SFC Act. Under these circumstances, on the short ground of non-compliance of the mandatory procedure prescribed under Section 32G of the SFC Act and in the absence of necessary certificate which should precede any recovery proceedings to be initiated against the petitioner, I am of the view that the impugned notice insofar as the petitioner is concerned deserves to be set aside by reserving liberty in favour of the respondents to take appropriate action in accordance with law.
7. In the result, I pass the following:-
ORDER
(i) Petition is hereby allowed.-7-
NC: 2024:KHC-K:8823 WP No. 200386 of 2022
(ii) The impugned Recovery Certificate at Annexure-E dated 12.08.2015 by the 4th respondent insofar as the petitioners are concerned is hereby quashed.
(iii) Liberty is reserved in favour of the respondents to take appropriate action against the petitioners in accordance with law.
Sd/-
(S.R.KRISHNA KUMAR) JUDGE SBS List No.: 1 Sl No.: 73