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2018 DIGILAW 398 (KER)

Charuvilkulangara Khadi and Village Industries Co-Operative Society v. State of Kerala Rep. by its Secretary, Department of Revenue

2018-05-31

SHAJI P.CHALY

body2018
JUDGMENT : 1. This writ petition is filed by the petitioner challenging Ext.P6 Government Order, whereby a period of five years is fixed for the defaulters of revenue dues to the Government for submitting application seeking re-conveyance of land purchased by the Government as “bought in land” seeking direction to the 1st respondent to accord sanction to the petitioner society to pay the entire amount due to the 5th respondent, and also to accord sanction to re-convey the property covered by Ext.P1 to the Co-operative Society specified above and to quash Ext.P5 order refusing the relief thus sought for. Material facts for the disposal of the writ petition are as follows. 2. Petitioner society availed a loan of Rs. 1,23,700/- from the 5th respondent during the year 1993, offering the property covered by Ext.P1 as collateral security. The extent of land is 4.5 acres situate in Sooranadu South Village. Due to default in repayment of loan, the property was put to auction under the provisions of the Kerala Revenue Recovery Act, after complying with the procedures contemplated thereunder and since there were no purchasers for the property, the same was purchased by the Government as “bought in land” on 09.08.2002, evident from Ext.P3 dated 25.05.2013. Even though the President of the Society has submitted Ext.P4 on 18.04.2013, same was rejected by the 1st respondent as per Ext.P5 order dated 16.05.2013, stating that the petitioner has not submitted application within the time period prescribed for re-purchase of the bought in land, as per the stipulations contained under Ext.P6 Government Order. It is thus challenging Ext.P5, and also the stipulations contained under Ext.P6, to submit any application within the time period of five years, this writ petition is filed. 3. A detailed counter affidavit is filed by the 3rd respondent, traversing through the circumstances under which Ext.P1 property was put to sale and also submitting that the entire action initiated by the State Government was in accordance with law. It is also submitted that, even after repeated requests by the revenue recovery officials, petitioner failed to remit the dues. It was thereupon only the property was attached. It is also submitted that, as per Ext.P6 Government Order, re-conveyance is possible only if the request is made within five years from the date on which the property was purchased by the State Government as bought in land. It was thereupon only the property was attached. It is also submitted that, as per Ext.P6 Government Order, re-conveyance is possible only if the request is made within five years from the date on which the property was purchased by the State Government as bought in land. The 2nd respondent has also filed a counter affidavit, justifying the circumstances which culminated in the sale of property covered by Ext.P1 deed. 4. I have heard learned counsel for the petitioner and the learned Senior Government Pleader. Perused the documents on record and the pleadings put forth by the respective parties. 5. The prime question to be considered is, whether any interference is warranted to Ext.P6 order passed by the State Government dated 01.03.2013, prescribing procedures and formalities with respect to re-purchase of the bought in land. According to learned counsel for the petitioner, the requirement of submitting an application within five years is arbitrary and illegal. There is no nexus sought to be achieved also in fixing the time period of five years. In my considered opinion, limitation is prescribed under the Indian Limitation Act, 1963 for instituting various litigations. Most of such time limits fixed under the Indian Limitation Act for preferring such litigations is three years. 6. If the Government has provided five years to submit an application, the five year time period is prescribed by the State Government with the avowed intention of putting the proceedings in order. Moreover, the proceedings relating to the sale of land cannot be kept by the Government for a long period, since such a course of action would put the Government into serious prejudice in keeping the files. If a time period is not fixed, the documents contained and the files are likely to be destroyed and defaced, and the Government in that circumstances would be put to severe difficulties and inconveniences. It is also done with the intention of putting the affected persons on alert. 7. Even though petitioner has a contention that the time period prescribed will interfere with the constitutional right guaranteed under Article 300A of the Constitution of India, I am of the view that petitioner has lost right and ownership of the property consequent to the illegal action on the part of the petitioner, not repaying the amounts taken from the 5th respondent Board. Petitioner has no case that the respondents have not followed the procedures contemplated under the provisions of the Kerala Revenue Recovery Act. Therefore, the sale of the property in that context, is in accordance with law and it cannot be said that, the action of the respondents any way interferes with the right conferred under Article 300A of the Constitution of India. Therefore, in my considered opinion, the time period fixed under Ext.P6 Government Order is reasonable, and there is no arbitrariness or illegality. 8. Yet another case projected by the petitioner is that, the Khadi Board constituted under the Kerala Khadi and Village Industries Board Act, 1957 [for short the Act, 1957] is an organization carrying on the business independent of the 1st respondent State Government, and therefore, the property could have been purchased by the State Government only for and on behalf of the 5th respondent, as per the provisions of the Kerala Revenue Recovery Act, since it is only a notified institution under Sec. 71 of the Act. However, the property was purchased by the State Government, and therefore, the purchase made by the State Government in the auction sale is bad. 9. Learned counsel for the petitioner in that regard has invited my attention to a Division Bench judgment of this Court in District Collector vs. Subaida Beevi, 2010 (1) KLT 913 and the judgment of a learned Single Judge in Thirumalaiswamy M. vs. State of Kerala and Others, 2012 (2) KHC 402 . It is true, the proposition of law laid down in the afore-quoted judgments would make it clear, if the auction sale is conducted by the State Government for and on behalf of a notified organization under Sec. 71 of the Kerala Revenue Recovery Act, the State Government could have purchased the same only for and on behalf of the said organization, failing which, the purchase by the State is illegal. 10. Therefore, now the question arises for consideration is, whether the Khadi Board is an organization notified by the State Government under Sec. 71 of the Revenue Recovery Act, and whether the Khadi Board has any independent existence apart from the Kerala State Government. In order to decipher the said issue, a reference to certain provisions of the Kerala Khadi and Village Industries Board Act, 1957 as amended is necessitated. 11. In order to decipher the said issue, a reference to certain provisions of the Kerala Khadi and Village Industries Board Act, 1957 as amended is necessitated. 11. “Board” is defined under Sec. 2(i) as a Board established under Sec. 4 of Act, 1957. Section 4 of Act, 1957 read thus: “4. Establishment of the Board:- (1) With effect from such date as the Government may, by notification in the Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a Board by the name of the Kerala Khadi and Village Industries Board. The Board shall be a body corporate having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract and do all things necessary for the purposes of this Act, and may by the said name sue and be sued. (2) The Board shall consist of not less than five and not more than fifteen members appointed by the Government from among:- (a) Non officials who, in the opinion of the Government, have shown active interest in the production and development of Khadi or in the development of Village Industries, of whom one shall be from among the District Panchayat Presidents and one shall be from among the Mayors of a municipal corporation or a Chairperson of a municipality. (b) Officials. Provided that at least one of the Non-Official members so appointed shall be a person belonging to a Scheduled Caste or a Scheduled Tribe. Explanation - In this sub-section, the expressions “Scheduled Caste” and “Scheduled Tribes” shall have the same meaning as in the Constitution of India. (2A) The Government shall nominate one of the members of the Board to be its Chairman and another member to be its Vice Chairman. Provided that the Vice-Chairman shall be nominated from among the Non-Official members of the Board. (3) The Chairman, Vice Chairman and the other members shall be paid from the funds of the Board such allowances as the Government may fix.” 12. Section 4A deals with Reconstitution of the Board, which stipulates that, the Government may by notification in the Gazette and for reasons to be specified in the notification, reconstitute the Board in accordance with the provisions of sub-section (2) of Sec. 4. Section 4A deals with Reconstitution of the Board, which stipulates that, the Government may by notification in the Gazette and for reasons to be specified in the notification, reconstitute the Board in accordance with the provisions of sub-section (2) of Sec. 4. Sub-section (3) of Sec. 4A is relevant to the context, which stipulates that, every notification issued under sub-section (1) shall be laid as soon as may be after it is issued before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid, or the session immediately following, the Legislative Assembly makes any modification in the notification or decided that the notification should not be issued, the notification shall thereafter have effect, only in such modified form or be of no effect, as the case may be, so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification. 13. Section 5 of Act, 1957 deals with resignation of office by Member, by giving notice in writing to the Government and on such resignation, the same shall be notified by the State Government in the Gazette and thereupon, the said member is deemed to have vacated the office. Section 7 deals with removal or suspension of a member and the Government is vested with powers to remove from the Board any member, who in the opinion of the Government, (a) refuses to act; or (b) has become incapable of acting; or (c) has so abused his position as a member as to render his continuance on the Board detrimental to the interests of the public; and for such other reasons contained under clauses (d) to (f) of sub-section (1) of Sec. 7. The proviso to sub-section (1) of Sec. 7 stipulates that, opportunity shall be given to such person to submit an explanation to the Government before the removal. 14. As per sub-section (2) of Sec. 7, the Government is vested with power to suspend any member of the Board pending action against him under sub-section (i). Sub-section (4) of Sec. 7 enables the Government to declare void any transaction in connection with which a members has been removed under sub-section (i). 14. As per sub-section (2) of Sec. 7, the Government is vested with power to suspend any member of the Board pending action against him under sub-section (i). Sub-section (4) of Sec. 7 enables the Government to declare void any transaction in connection with which a members has been removed under sub-section (i). As per Sec. 8, the Government is obligated to fill up the vacancy in the Board consequent to death or resignation of any member as provided in Sec. 5 or is removed consequent to the disqualifications specified in Sec. 6 or sub-section (i) of Sec. 7. Section 12 deals with meetings of the Board, which enables the Board to have regular meetings in accordance with the procedure contemplated under sub-sections (1) to (3). However, after the meeting, as stipulated under sub-section (4) of Sec. 12, the proceedings of the meeting of the Board shall be forwarded to the Government within fifteen days of every meeting. 15. Section 15 of Act, 1957 deals with functions of the Board in accordance with the procedures contemplated thereunder. Sub-section (10) of Sec. 15 stipulates that, to arrange for publicity and popularising of goods manufactured in Khadi and Village Industries by opening stores, shops, exhibitions and the like and to carry on such activities incidental and conducive to the objects of the Act and to perform such other functions as the Government may direct for the purpose of carrying out the objects of the Act. Section 16 deals with the general powers of the Board, by which the Board shall, for the purpose of carrying out its functions under the Act, is vested with powers thereunder. It is true, as per sub-section (i) of Sec. 16, the Board has the power to acquire and hold such movable and immovable properties as it deems necessary and to lease, sell or otherwise transfer any such property. However, the proviso makes a restriction to the effect, in the case of immovable property [the aforesaid powers except the power to acquire] shall be exercised only with previous sanction of the Government. As per sub-section (ii) of Sec. 16, apart from the independent power of the Board with respect to the expenditure, the Government is vested with powers to entrust the Board to incur expenditure and undertake works within the State of Kerala. As per sub-section (ii) of Sec. 16, apart from the independent power of the Board with respect to the expenditure, the Government is vested with powers to entrust the Board to incur expenditure and undertake works within the State of Kerala. The Board is vested with power in the matter of inspection, so also, power is enjoyed by the State Government also for the purpose, as per sub-section (iv) of Sec. 16. Section 17 deals with preparation and submission of Annual programmes, by which the Board will have to act, in each year on or before such dates as may be fixed by the Government, and the Scheme shall be forwarded to the Government and the District Planning Committee constituted under Sec. 53 of the Kerala Municipality Act, 1994. 16. As per Sec. 18 of Act, 1957, all programmes of the Board is to be approved by the Government and sanction the programme in whole or with such modifications as they deem fit, after due consideration of the recommendations of the District Planning Committee. Any supplementary programme prepared by the Board may also be forwarded to the Government in accordance with the provisions of Sec. 19. Section 20 enables the Government to transfer to the Board buildings, land or any other property, whether movable or immovable, for use and management by the Board on such conditions and limitation as the Government may deem fit for the purpose of the Act. 17. Section 21 of Act, 1957 deals with funds of the Board, which stipulates that, the Board shall have its own fund and all receipts of the Board shall be credited thereto and all payments by the Board shall be met therefrom. Sub-section (2) enables the Board to accept grants, subventions, donations, gifts and receive loans from the Government or a local authority or any body or association, whether incorporated or not, or an individual for all or any of the purposes of the Act. Sub-section (3) mandates that, all monies belonging to the fund of the Board shall be deposited in such manner as the Government by special or general orders direct. Section 23 states that, the Government may, from time to time, make subventions and grants to the Board for the purposes of the Act on such terms and conditions as the Government may determine in each case. Section 23 states that, the Government may, from time to time, make subventions and grants to the Board for the purposes of the Act on such terms and conditions as the Government may determine in each case. Sub-section (2) of Sec. 23 enables the Board to borrow any sum required for the purpose of the Act, however, with the previous sanction of the Government and subject to the provisions of the Act and such conditions as the Government may determine. 18. As per Sec. 24 of Act, 1957, the Board is to prepare a Budget as may be fixed by the Government and submit to the Government the budget for the next financial year showing estimated receipts and expenditure on capital and revenue accounts according to the programme and the schedule of the stock. As per Sec. 25, the Government is to sanction the budget and as per Sec. 26, the supplementary budget is also to be sanctioned by the Government. Annual report shall also be forwarded by the Board to the Government in such manner as may be prescribed within three months from the end of the financial year providing a complete account of its activities during the previous financial year and every such report shall be laid before the Legislative Assembly as soon as may be and after it is received by the Government. The audit shall be done as per Sec. 29 through an auditor approved by the State Government. Section 28 also enables the Government to call for reports, statistics and returns at any point of time. Section 29A enables the Board to recover any arrears due to it by resorting to the provisions of the Revenue Recovery Act. Section 30 deals with the power of the Government to issue directions with respect to discharge of the functions of the Board. Section 30A enables the State Government to dissolve the Board, if the Government is satisfied in accordance with the reasons assigned thereunder. Section 30B is dealing with rights, liabilities etc. of the Board on dissolution and all properties in possession of the Board shall vests with the Government. 19. By virtue of the provisions contained under Sec. 33, the Government is vested with powers to make rules. Section 34 enables the Board to make regulations, however, only with the previous sanction of the State Government. of the Board on dissolution and all properties in possession of the Board shall vests with the Government. 19. By virtue of the provisions contained under Sec. 33, the Government is vested with powers to make rules. Section 34 enables the Board to make regulations, however, only with the previous sanction of the State Government. As per Sec. 31, the members of the Board and members of staff of Board shall be deemed to be public servants within the meaning of Sec. 21 of the Indian Penal Code. Various rules and regulations are made by the State Government as well as the Khadi Board in accordance with the powers conferred as is specified above. 20. The discussion of law made above would make it clear that, the State Government has all pervasive control over the Board, even though certain functional freedom is granted to the Board with respect to acquisition of movable and immovable properties. All pervasive power of the Government over the Board and its staff makes it explicit and clear that the 5th respondent has no independent existence apart from the State Government. The functional freedom is given to the Board in order to carry on its day-to-day affairs, however, those powers are also circumscribed by virtue of the powers conferred on the Government under Sections 30A, 30B and other provisions of Act, 1957, discussed above. 21. Taking into account the entire conspectus, I am of the considered opinion that, the Board is an extended arm of the State Government constituted for the purpose of carrying on the Khadi and Village Industries to translate its true spirit and objective. Even though it has its own seal and powers, it cannot be said to be an independent body delineated absolutely from the State Government. If the State Government forms an opinion that the Board has not discharged its duties and functions, it is vested with every power to dissolve the Board. Apart from all these, the Khadi Board is not a notified institution under Sec. 71, but Khadi Board is empowered under Sec. 29A of Act, 1957 to recover arrears due to it by resorting to the provisions of Kerala Revenue Recovery Act as an arrear of land revenue. Apart from all these, the Khadi Board is not a notified institution under Sec. 71, but Khadi Board is empowered under Sec. 29A of Act, 1957 to recover arrears due to it by resorting to the provisions of Kerala Revenue Recovery Act as an arrear of land revenue. Therefore, in my considered opinion, the contention advanced by learned counsel for the petitioner that being a notified institution under Sec. 71, the Government could purchase the property only for and on behalf of 5th respondent, is not correct. The discussion also makes it clear that the proposition of law laid down by this Court in the afore-quoted judgments in respect of other notified institutions will not apply to the facts and circumstances of the case. 22. The conspectus leads me to the conclusion that, petitioner has not made out any case justifying grant of reliefs as is sought for in the writ petition, there being no arbitrariness or illegality. 23. Resultantly, writ petition fails, accordingly it is dismissed.