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1. ISSUES PRESENTED and CONSIDERED The core legal question considered in this judgment is whether a debt that is barred by the statute of limitations can be recovered through recovery proceedings under the Kerala Revenue Recovery Act, 1968. 2. ISSUE-WISE DETAILED ANALYSIS Relevant Legal Framework and Precedents The Kerala Revenue Recovery Act, 1968, is designed to consolidate and amend laws related to the recovery of arrears of public revenue in Kerala. The Act provides a mechanism for the speedy recovery of public revenue and certain other dues deemed necessary in the public interest. Section 71 of the Act allows the government to extend its provisions to recover amounts due from individuals to specified institutions, such as banks and the Kerala Financial Corporation, particularly for loans given for agricultural purposes or economic development. The court referenced analogous provisions in the U.P. Public Moneys (Recovery of Dues) Act, 1965, and the interpretation by the Supreme Court in The Director of Industries, U.P. and Ors. v. Deep Chand Agarwal, which upheld the classification of loans for speedy recovery as a valid classification under Article 14 of the Constitution. The court also considered the Privy Council's interpretation of "money due" in Hansraj Gupta & Ors. v. Dehra Dun-Mussoorie Electric Tramway Co. Ltd. and the Supreme Court's interpretation of similar terms in New Delhi Municipal Committee v. Kalu Ram and Anr. Court's Interpretation and Reasoning The court examined whether the term "amounts due" in Section 71 of the Kerala Revenue Recovery Act includes time-barred claims. The court interpreted "amounts due" as referring to amounts that are legally recoverable, meaning they must not be time-barred. The court reasoned that the Act does not create new rights but merely provides a process for speedy recovery. Therefore, it cannot be used to recover debts that are not legally enforceable due to being time-barred. Key Evidence and Findings The court found that the Kerala Revenue Recovery Act does not expressly provide for the recovery of time-barred debts. The Act's purpose is to facilitate speedy recovery, not to enlarge the rights of creditors to recover debts that are otherwise unenforceable by law. The court also noted that the right to file a suit for refund under Section 70(3) implies that defenses available in a suit, such as the statute of limitations, are preserved. Application of Law to Facts The court applied its interpretation of "amounts due" to the facts of the case, concluding that claims which are time-barred cannot be recovered under the Kerala Revenue Recovery Act. The Act's provisions do not override the statute of limitations, and creditors cannot use the Act to bypass the legal defenses available to debtors. Treatment of Competing Arguments The respondent institutions argued that the term "amounts due" should include time-barred debts, relying on the notion that the statute of limitations bars the remedy but not the right. The court rejected this argument, emphasizing that the Act does not explicitly allow for the recovery of time-barred debts and that such an interpretation could potentially violate Article 14 by creating an unjust classification. Conclusions The court concluded that the Kerala Revenue Recovery Act does not permit the recovery of time-barred debts. Claims that are time-barred on the date a requisition is issued under Section 69(2) are not "amounts due" under Section 71 and cannot be recovered under the Act. 3. SIGNIFICANT HOLDINGS Preserve Verbatim Quotes of Crucial Legal Reasoning "The Kerala Revenue Recovery Act does not create any new right. It merely provides a process for speedy recovery of moneys due. Therefore, instead of filing a suit, (or an application or petition under any special Act), obtaining a decree and executing it, the bank or the financial institution can now recover the claim under the Kerala Revenue Recovery Act." Core Principles Established The judgment establishes that the Kerala Revenue Recovery Act cannot be used to recover debts that are time-barred under the statute of limitations. The Act's purpose is limited to providing a mechanism for speedy recovery of legally enforceable debts. Final Determinations on Each Issue The court allowed Civil Appeal Nos. 12393 and 12394 of 1996, dismissing Civil Appeal Nos. 4211 of 1988, 4393 of 1988, 4175 of 1988, and the appeal arising from S.L.P.(C) No.12051 of 1988, holding that the Kerala Revenue Recovery Act cannot be used to recover time-barred debts.
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