Benzy Martin vs State Of Kerala on 16 August, 2024
17. The interplay between the Chit Funds Act,
1982 and the Kerala Revenue Recovery Act, 1968 was
considered by a Division Bench of this Court in
Premanandan v. State of Kerala [2020 (3) KLT OnLine 1027
= 2020 (6) KLT SN 46 (C. No.41)]. The Division Bench
considered whether when the subject matter is challenged by
the Principal Debtor before the Arbitrator, whether the
appellant can be proceeded against. The Division Bench held
that in the absence of any interim order by the Arbitrator,
creditor will be free to proceed against the guarantors. The
Division Bench held that the Kerala Revenue Recovery Act is
a self contained statute aimed at recovery amounts due to the
Government, statutory bodies and Corporations and other
notified institutions.