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1991 DIGILAW 470 (KER)

Shamsudhin And Co. v. The Regional Director Of ESI Corporation

1991-10-31

K.SREEDHARAN

body1991
JUDGMENT K. Sreedharan, J. 1. The issue raised by the petitioner in these original petitions falls within small compass. It is in relation to the competency of the District Collector, Quilon to initiate proceedings under the Revenue Recovery Act on the basis of the request made by the first respondent. 2. Petitioner is a firm engaged in export of Cashew Kernals. It has two factories. Those factories are covered by the Employees State Insurance Act. Petitioner failed to make timely returns and contributions under the Act. On the basis of the certificate issued by the Regional Director Employees State Insurance Corporation, Trichur, the District Collector, Quilon took action under the Revenue Recovery Act for realising the amounts due from the petitioner. 3. First respondent is an authority situated in Trichur District. According to counsel representing the petitioner in these original petitions, the amounts due to the first respondent can be claimed only through the District Collector, Trichur. In other words, the first respondent should have requested the District Collector, Trichur to recover the amounts due from the petitioner. If the District Collector, Trichur found it difficult to recover that sum from the petitioner,' who is a resident of Quilon, the District Collector, Trichur should have forward a certificate to the District Collector, Quilon requiring him to initiate proceedings under the Revenue Recovery Act. In the absence of such a request from the District Collector, Trichur, it is contended that the action initiated by the second respondent, District Collector, Quilon is against the provisions of the Revenue Recovery Act. 4. S.5 of the Revenue Recovery Act, 1890 (Act 1 of 1890) deals with recovery by Collector of sums recoverable as arrears of revenue by other public officers or by local authorities. 4. S.5 of the Revenue Recovery Act, 1890 (Act 1 of 1890) deals with recovery by Collector of sums recoverable as arrears of revenue by other public officers or by local authorities. It is in the following terms:- "Whether any sum is recoverable as an arrear of land revenue by any public officer other than a Collector or by any local authority, the Collector of the district in which the office of that officer or authority, is situate shall, on the request of the officer or authority, proceed to recover the sum as if it were an arrear of land revenue which had accrued in his own district, and may send a certificate of the amount to be recovered to the Collector of another district under the foregoing provisions of this Act, as if the sum were payable to himself."t If any sum is recoverable by any public officer as arrear of land revenue, that officer should request the Collector of the district in which his office is situated. On such request, the Collector of that district namely the district in which the office of that officer is situated, should proceed to recover the sum as if it were an arrear of land revenue. In case that amount is not recoverable on account of the defaulter having no property in the district, that Collector has to send a certificate to the Collector of other district where the defaulter is having assets or properties. That certificate must state the name of the defaulter and other details necessary for jus identification and the amount payable by him and the account on which it is due. The, Collector of that district on receiving the certificate, should proceed to recover the amount stated, in that certificate as if it were an arrear of land revenue which accrued in his own district. 5. In the instant case, the amount is due to the first respondent, The Regional Director, Employees' State Insurance Corporation, Trichur. That amount is recoverable as an arrear of land revenue. So the first respondent should request the Collector of the district in which his office is situated, namely the Collector, Trichur, to initiate steps to recover the sum due as if it were an arrear of land revenue. That amount is recoverable as an arrear of land revenue. So the first respondent should request the Collector of the district in which his office is situated, namely the Collector, Trichur, to initiate steps to recover the sum due as if it were an arrear of land revenue. If the District Collector, Trichur finds it impossible to recover that amount, since the petitioner defaulter is not having assets within his jurisdiction, District Collector, Trichur has to send a certificate of the amount to be recovered to the Collector of Quilon for initiating steps under the Revenue Recovery Act. Only on getting such a certificate, can the Collector of Quilon get jurisdiction to initiate action under the Revenue Recovery Act. Since the certificate of the Collector, Trichur-is the one conferring jurisdiction on the" Collector of Quilon to initiate action against the petitioner, the Collector of Quilon can initiate action only after obtaining such a certificate from the District Collector, Trichur. It is common case that the first respondent did not request the Collector, Trichur to initiate action under the Revenue Recovery Act for realising the amount due from the petitioner. Consequently there was no certificate as contemplated by S.3 of the Revenue Recovery Act, Act 1 of 1890" to the District Collector, Quilon. So the steps taken by the District Collector, Quilon are without jurisdiction. Hence T quash all steps taken by the second respondent in pursuance to the request made by the first respondent. I make it clear that this decision' will not in any way affect the right of the first respondent to approach the District Collector, Trichur to initiate action against the petitioner for recovering the amount due from the petitioner. 6. Learned counsel representing the petitioner did not raise any other contention regarding the correctness or otherwise of the amount claimed by the first respondent. His liability to pay the amount is also not disputed. In this circumstance I make it clear that the orders passed by the District Collector, Quilon under the Revenue Recovery Act are set aside solely on the ground of his lack of jurisdiction. Original Petitions are disposed of in the above terms. I make no order as to costs.