Judgment :- 1. The petitioner is an abkari contractor. He bid in auction certain abkari shops in Tellicherry Range. He was liable to pay substantial amounts as contribution. He could not do so in a lump. He approached the Government for giving him instalment facilities, which was granted. The petitioner states that he remitted the instalments and wiped out the arrears, in time. According to him, the entire amount due for the period, 1985-86 was paid. Even so, the petitioner was served with Ext. PI notice demanding an amount of Rs.23,658.50, alleged to be due for the period from 1-6-1984 to 31-5-1986. Ext. PI also threatened him with attachment of properties, if the amount is not paid soon. The petitioner states that the amount that is stated to be due as per Ext.P1 is towards interest for the period 1984-85 and 1985-86. The main thrust of the petitioner's argument is that the entire principal amount due was paid as per the instalment scheme afforded by the Government, and even so, interest has been charged on the total amount due. This has been so done in view of the Government Order, Ext.P2, dated 2-5-1986. The petitioner attacks Ext.P2 as illegal and unauthorised. He also attacks Ext.P1 demand raised as a sequel to the directions contained in Ext.P2 Government Order. 2. I heard counsel. Counsel for the respondent submitted that Ext.P2 order is valid in law. It was submitted that the entire amount is due from the petitioner. There is no obligation in the Government to permit the petitioner to pay the dues in instalments. It was further submitted that if instalment facilities are afforded, there is no provision in the Act enabling the Government to reduce the interest proportionate to the amount of arrears outstanding. The defaulter is bound to pay interest on the entire amount till the defaulted amount is paid in full. 3. S.9 of the Kerala Toddy Worker's Welfare Fund Act, 1969, provides for the mode of recovery of moneys due from the employers. S.9 of the Act runs as follows: "9.
The defaulter is bound to pay interest on the entire amount till the defaulted amount is paid in full. 3. S.9 of the Kerala Toddy Worker's Welfare Fund Act, 1969, provides for the mode of recovery of moneys due from the employers. S.9 of the Act runs as follows: "9. Mode of Recovery of Moneys due from Employers: Any amount due from the employer in pursuance of the provisions of this Act or the scheme may, if the amount is in arrear, be recovered together with interest thereon at the rate of nine per cent per annum in the same manner as an arrear of land revenue." 4. It is true that the Act does not contain any provision enabling the Government to reduce or grant a concession in the matter of payment of interest. But S.9 itself provides interest to be levied only on the amount of arrears. If for amounts due, Government permitted the defaulter to pay the same in instalments as and when the 1st instalment is paid, the total amount payable thereafter will be, only the sum, minus the amount paid by way of 1st instalment. Interest is leviable, for only the balance thereafter. The amount paid by way of instalment shall be reduced from the total amount then due and interest will run for the balance amount only, as per S.9 of the Act. To the extent any portion of the amount due is paid, the arrear is reduced. It is only for such reduced amount interest is leviable. The interest is leviable and can be recovered only for the actual amount due, after giving credit to the amounts paid. On a plain reading of S.9 of the Act, I am of the view, that interest cannot be levied on the entirety of the amount originally due, without reckoning the amounts paid, in instalments. The interest can be levied only pro tanto on the amount due from time to time after giving credit to instalments remitted. Ext.P2, in so far as it holds a view to the contrary, is unsustainable and plainly against the tenor of S.9 of Act 22 of 1969. To that extent Ext.P2 is bad in law. I declare it accordingly. 5.
Ext.P2, in so far as it holds a view to the contrary, is unsustainable and plainly against the tenor of S.9 of Act 22 of 1969. To that extent Ext.P2 is bad in law. I declare it accordingly. 5. The petitioner shall file an appropriate petition before the 1st respondent, stating the total amount due from him and amounts paid by him from time to time as per the instalment facility afforded by the Government. This the petitioner shall do within six weeks from today. If such a petition is filed, the 1st respondent shall verify the total amount due from the petitioner, the amounts paid from time to time, whether the Government had permitted the petitioner to pay the amount in instalments, and after deducting the instalments paid, interest leviable on the arrear as on the various dates. It is open to the 3rd respondent, the Welfare Fund Inspector, to compute the amount due from the petitioner with interest pro tanto on the arrears and intimate the petitioner. The O.P. is allowed to the above extent. Allowed.