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2021 (10) TMI 883

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..... ing of the District Collector that the defaulter can claim for his right on the property and pay the dues using the said property is not sustainable. The reports of the revenue officials that, the defaulter is living in a highly financial family background with financially sound relatives and friends are not factors relevant under S. 65 of the Act to make an order for the detention of the defaulter in the civil prison. No objective assessment of facts and the factors relevant under S. 65 of the Act was made by the District Collector to make an order for the detention of the defaulter in civil prison. There is nothing on record before the District Collector to hold that the defaulter has means to pay the arrears, or the defaulter is willfully withholding payment of arrears of sales tax or has dishonestly transferred his property or guilty of fraudulent conduct. The petitioner's husband, the defaulter is set free - Petition allowed. - WP (C) No. 8685 of 2013 - - - Dated:- 6-9-2021 - Murali Purushothaman , J. For the Appellant : N. M. Madhu and C.S. Rajani, Advs. For the Respondents : K. M. Faisal, Government Pleader JUDGMENT This writ petition is fil .....

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..... iquidate the arrears and therefore it is proposed to arrest and imprison the defaulter in the civil prison. 5. The defaulter submitted Ext. P4 explanation to the show cause notice stating that he has no means to pay the arrears and that he has no right in his father's property and he has not dishonestly transferred any property to evade the payment. 6. The District Collector after hearing the defaulter passed Ext. P7 order invoking the powers under section 65 of the Act to arrest and detain the defaulter in civil prison. The relevant portion of Ext. P7 reads as follows:- In compliance of judgment in WP(C) 25721/03 of Honorable High Court of Kerala, Tahasildar, Mukundapuram, Thrissur, Chavakkad, Kodungalur and Talappilly were directed to report on the benami property details of Sr. Joy. J. Moyalan. No properties in his name or in benami were reported. In the meanwhile, Sri. Johny, father of defaulter filed AS. 406/04, 408/04 AS. 413/04 before the Honourable District Court, Thrissur for injunction against RR proceedings on his properties and gained a Judgment granting Order restraining the RR Authorities from initiating Revenue Recovery against the plaint Schedule pr .....

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..... as X is hereby rejected. I find the arrest of the defaulter is necessary to clear the huge arrears to Government. In these circumstances, I hereby Order by exercising the powers conferred as District Collector U/s. 65 of KRR Act, 1968 that the defaulter Sri. Joy. J. Moyalan, S/o. Late Johny, Moyalan (H), Ollur, Edakkunny (V), Thrissur Taluk will be arrested and detained in Civil prison Viyyur. An arrest warrant in Form No. 22 U/s. 66 of KRR Act, 1968 is issued accordingly . Pursuant to Ext. P7 order, the defaulter was arrested and detained in civil prison, Viyyur. It was in the said circumstances the defaulter's wife filed this writ petition challenging Ext. P7 and for direction to release the defaulter. This Court, while admitting the writ petition, passed an order on 26.03.2013 to provisionally release the defaulter who was detained in civil prison, Viyyur. 7. The main contention of the petitioner is that, after this Court quashed Ext. P1 order, no new facts and materials were available with the 1st respondent to reach a different conclusion warranting the arrest of the defaulter under section 65 of the Act and Ext. P7 has been issued in violation of the directio .....

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..... pay the arrears or some substantial part thereof and refuses or neglects to pay the same, or the proceeds of the sale of the property of the defaulter and his surety are not sufficient to liquidate the arrears with interest thereon and cost of process, he may issue a warrant for the arrest of the defaulter. No such warrant shall be issued before serving a notice upon the defaulter calling upon the defaulter calling upon him to appear before the District Collector at the time and place specified in the notice and to show cause why he should not be committed to the civil prison. The District Collector shall on the appearance of the defaulter, hear him and consider such other evidence as may be produced by him. Upon the conclusion of the enquiry, the District Collector may, if he is convinced that such course is necessary, make an order for the detention of the defaulter in the civil prison and shall, in that event, cause him to be arrested: Provided that, in order to give the defaulter an opportunity to clear the arrears, the District Collector may, before making the order of detention, grant him time not exceeding thirty days on his furnishing security to the satisfaction of th .....

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..... ven otherwise, as rightly contended by the counsel for the petitioner, the defaulter would have only a factional right in his father's property, that too, if his father died intestate. Even according to the District Collector the property of the defaulter's father was bequeathed to the defaulter's son. Therefore, the finding of the District Collector that the defaulter can claim for his right on the property and pay the dues using the said property is not sustainable. 14. The reports of the revenue officials that, the defaulter is living in a highly financial family background with financially sound relatives and friends are not factors relevant under S. 65 of the Act to make an order for the detention of the defaulter in the civil prison. No objective assessment of facts and the factors relevant under S. 65 of the Act was made by the District Collector to make an order for the detention of the defaulter in civil prison. There is nothing on record before the District Collector to hold that the defaulter has means to pay the arrears, or the defaulter is willfully withholding payment of arrears of sales tax or has dishonestly transferred his property or guilty of fraud .....

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