Non-Reportable
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.7221 OF 2012
[Arising out of SLP (Civil) No. 1832 of 2010]
[Arising out of SLP (Civil) No. 1832 of 2010]
O R D E R
K.S. Radhakrishnan, J.
1. Leave granted.
2. The Government of Kerala in exercise of the powers conferred under
Sections 18A and 29 of the Abkari Act 1 of 1077 amended the Kerala Abkari
Shops (Disposal in auction) Rules, 1974 and issued notification G.O. (M.S.)
No.31/74/TD dated 28th February 1974, published vide the Gazette
Notification No.G.O.(P)No.88/2000/TD dated 2nd June, 2000, incorporating
Rule 6 after sub-rule (5) of the following sub rule, which reads as
follows:
Sections 18A and 29 of the Abkari Act 1 of 1077 amended the Kerala Abkari
Shops (Disposal in auction) Rules, 1974 and issued notification G.O. (M.S.)
No.31/74/TD dated 28th February 1974, published vide the Gazette
Notification No.G.O.(P)No.88/2000/TD dated 2nd June, 2000, incorporating
Rule 6 after sub-rule (5) of the following sub rule, which reads as
follows:
“25A. Reduction of interest in certain cases –
i) Notwithstanding anything contained in this rule or any
other rules made under the Abkari Act 1 of 1077 or in any
judgment, decree or order of any court, the person who are
in arrears to pay rentals, taxes, duties or other amounts
under this rule as on 31st Day of March 1997 shall be
entitled to a reduction of Seventy five per cent of the
amount of interest accrued on such rentals, taxes, duties
or other amounts as the case may be,
other rules made under the Abkari Act 1 of 1077 or in any
judgment, decree or order of any court, the person who are
in arrears to pay rentals, taxes, duties or other amounts
under this rule as on 31st Day of March 1997 shall be
entitled to a reduction of Seventy five per cent of the
amount of interest accrued on such rentals, taxes, duties
or other amounts as the case may be,
Provided that the entire arrears of rentals, taxes, duties or
other amounts with the reduced interest shall be paid on or
before the 31st day of August, 2000;
other amounts with the reduced interest shall be paid on or
before the 31st day of August, 2000;
Provided further that the maximum interest payable after
allowing the reduction mentioned above shall be limited to one
hundred per cent of the principal amount of rentals, taxes,
duties or other amounts outstanding as arrears.”
allowing the reduction mentioned above shall be limited to one
hundred per cent of the principal amount of rentals, taxes,
duties or other amounts outstanding as arrears.”
3. Claiming the benefit of the above-mentioned provision, the appellants
approached the learned Single Judge of the High Court of Kerala. It was
pointed out that though the above-mentioned notification was published in
the Gazette on 3.6.2000, the effect of Section 25A would be from 31.7.1997.
It was also submitted before the learned Single Judge that the appellants,
even though remitted the entire amount on 4.4.1998 i.e. after the cutoff
date mentioned in Section 25A, the state of affairs prevalent as on
31.3.1997 would govern the rights of parties for refund of the amounts.
Consequently, it was contended that the appellants are entitled to get
refund of the amount. The learned Single Judge allowed the writ petition
and passed the following order:
approached the learned Single Judge of the High Court of Kerala. It was
pointed out that though the above-mentioned notification was published in
the Gazette on 3.6.2000, the effect of Section 25A would be from 31.7.1997.
It was also submitted before the learned Single Judge that the appellants,
even though remitted the entire amount on 4.4.1998 i.e. after the cutoff
date mentioned in Section 25A, the state of affairs prevalent as on
31.3.1997 would govern the rights of parties for refund of the amounts.
Consequently, it was contended that the appellants are entitled to get
refund of the amount. The learned Single Judge allowed the writ petition
and passed the following order:
“By Ext. P8, the Kerala Abkari Shops (Disposal in Auction)
Rules, 1974 were amended inserting section 25A whereby those
persons who had arrears to pay rentals, taxes, duties or other
amounts under those rules as on 31.3.1997 were entitled to a
reduction of 75% of the amount of interest accrued on such
rentals, taxes, duties or other amounts as the case may be.
Though Ext. P8 is issued only on 2.6.2000 and published in the
gazette on 3.6.2000, the effect of section 25A is on the basis
of the state of affairs as on 31.3.1997. Admittedly, the
petitioner made the remittance only on 4.4.1998, that is, after
the cutoff date in terms of section 25A. He is, therefore,
entitled to the benefit of section 25A in relation to the arrear
that was outstanding as on 31.3.1997. It is so declared. The
impugned orders shall stand modified accordingly and the Excise
Commissioner is directed to have the outstanding worked out on
the basis of the declaration contained in this judgment and have
a demand issued to the petitioner for any outstanding balance,
within an outer limit of three months from the date of receipt
of a copy of this judgment.”
Rules, 1974 were amended inserting section 25A whereby those
persons who had arrears to pay rentals, taxes, duties or other
amounts under those rules as on 31.3.1997 were entitled to a
reduction of 75% of the amount of interest accrued on such
rentals, taxes, duties or other amounts as the case may be.
Though Ext. P8 is issued only on 2.6.2000 and published in the
gazette on 3.6.2000, the effect of section 25A is on the basis
of the state of affairs as on 31.3.1997. Admittedly, the
petitioner made the remittance only on 4.4.1998, that is, after
the cutoff date in terms of section 25A. He is, therefore,
entitled to the benefit of section 25A in relation to the arrear
that was outstanding as on 31.3.1997. It is so declared. The
impugned orders shall stand modified accordingly and the Excise
Commissioner is directed to have the outstanding worked out on
the basis of the declaration contained in this judgment and have
a demand issued to the petitioner for any outstanding balance,
within an outer limit of three months from the date of receipt
of a copy of this judgment.”
4. Aggrieved by the same the State filed Writ Appeal No.1005 of 2008
before the Division Bench and the Division Bench allowed the appeal and set
aside the order of the learned Single Judge against which this appeal has
been preferred.
before the Division Bench and the Division Bench allowed the appeal and set
aside the order of the learned Single Judge against which this appeal has
been preferred.
5. Learned counsel appearing for the appellants submitted that the
appellants are entitled to the benefit of remission provided in the
notification dated 2.6.2000 by which Section 25A was inserted. It was
stated that newly introduced provision providing for remission specifically
referred to the arrears benefit of 31.3.1997. Admittedly, it was pointed
out that the appellants were in default on 31.3.1997 and the arrears were
paid on 15.12.1997 and 17.11.1998. It was also submitted that the learned
Single Judge rightly directed the refund of the amount in view of Section
25A. Shri M.T. George, learned counsel appearing for the State submitted
that the appellants are not entitled to get the benefit of Section 25A
since they were not on default as on 31.6.2000.
6. We notice that sub-rule in the Abkari Shops (Disposal in Auction)
Rules, 1974 was intended to be applied to those who were in arrears as on
31.3.1997 and continues as such in arrears till the publication of the
notification on 3.6.2000. Persons who fall in that category were entitled
to get an option to avail of the benefit of the above-mentioned provision
by clearing the entire arrears on or before 31.8.2000. The provision is
not intended to confer any option to those who have already cleared the
arrears before coming into force of the provisions which were given effect
only from 3.6.2000. Sub-rule 25A(i) has not extended the benefit of that
rule to those persons who had already cleared their arrears between
31.3.1997 and 3.6.2000. Facts will indicate that the appellant had cleared
the arrear amount on 17.11.1998 and clause (ii) and (iii) of the sub-rule
would make it clear that the rule is meant only to benefit those persons
who remained as defaulters as on 3.6.2000.
Rules, 1974 was intended to be applied to those who were in arrears as on
31.3.1997 and continues as such in arrears till the publication of the
notification on 3.6.2000. Persons who fall in that category were entitled
to get an option to avail of the benefit of the above-mentioned provision
by clearing the entire arrears on or before 31.8.2000. The provision is
not intended to confer any option to those who have already cleared the
arrears before coming into force of the provisions which were given effect
only from 3.6.2000. Sub-rule 25A(i) has not extended the benefit of that
rule to those persons who had already cleared their arrears between
31.3.1997 and 3.6.2000. Facts will indicate that the appellant had cleared
the arrear amount on 17.11.1998 and clause (ii) and (iii) of the sub-rule
would make it clear that the rule is meant only to benefit those persons
who remained as defaulters as on 3.6.2000.
7. We, therefore, find no error in the view expressed by the Division
Bench. Therefore, this appeal is dismissed, with no order as to costs.
Bench. Therefore, this appeal is dismissed, with no order as to costs.
……………………………….J.
(K.S. Radhakrishnan)
(K.S. Radhakrishnan)
