Amnesty-driven settlement of revenue arrears can justify restoration of bought-in land when the State lacks effective possession.
Where sales tax arrears covered by revenue recovery are later settled under an Amnesty Scheme, equity may support restoration of bought-in land to the original owner if the State has not taken effective possession. The Kerala High Court note states that the Government had purchased only the petitioner's undivided share in revenue recovery proceedings, but the arrears were subsequently remitted and reconveyance was sought. In those circumstances, the Court directed cancellation of the sale and confirmation orders, if any, and ordered restitution of the property to the petitioner within the time fixed.
Issues: Whether the petitioner was entitled to return of the undivided share of property purchased by the Government as bought-in-land in revenue recovery proceedings after the sales tax arrears were settled under the Amnesty Scheme.
Analysis: The sale under Section 50(2)(i) of the Kerala Revenue Recovery Act concerned only the petitioner's undivided 1/5th share, and the Government had not taken actual possession of the property. The petitioner had pursued reconveyance and was later permitted to settle the arrears under the Amnesty Scheme, after which the demanded amount was remitted. In such circumstances, equity supported restoration of the property, and the earlier purchase by the Government did not justify retention of the land when the basis of the recovery had been addressed.
Conclusion: The petitioner was entitled to return of the property, and the respondents were directed to cancel the sale and confirmation orders, if any, and restore the property.
Final Conclusion: The writ petition succeeded and the Government was required to restitute the bought-in land to the petitioner within the time fixed by the Court.
Ratio Decidendi: Where a defaulter settles the arrears under an amnesty arrangement and the State has not taken effective possession of the bought-in property, equity may require restoration of the property to the original owner.
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