TaxTMI 
TaxTMI 
TaxTMI 
2021 (10) TMI 883
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....his Court in W.P. (C) No. 25721/2003 and this Court by Ext. P2 judgment quashed Ext. P1 order (Ext. P3 therein). The relevant portion of the judgment reads thus; 'Since the District Collector's order was not a speaking order, this court got an enquiry conducted by the Special Cell of the police. The police have filed a report in this Court stating that on their enquiry petitioner does not have any means and he and his family members are depending on his father. In view of the police report and in the circumstances, Ext. P3 is not tenable. In the circumstances, Ext. P3 is quashed, leaving freedom to the District Collector to conduct independent enquiry as to whether petitioner has means, whether any property is held by the petitioner in benami, and whether he has transferred assets to avoid payment to the Government. It is for the District Collector to collect data and furnish it to the petitioner calling for this objections, and issue fresh orders including order under Section 65 of the RR Act if there are new facts and materials available with him.' (emphasis supplied) 4. Pursuant thereto, the District Collector issued a show cause notice to the defaulter as to wh....
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....ng notice U/s. 65 of KRR Act was again issued to the defaulter for a personal hearing before District Collector, Thrissur on 03-02-12 vide the paper read as IX above. Sri. Joy. J. Moyalan was absent for hearing. A counsel for the defaulter appeared for hearing and filed a petition vide the paper read as X above. As per the representation, the defaulter informed that he has no means to pay the dues and also that he has not transferred his father's property to the name of his son and also that his father transferred his property to his grandson, son of defaulter as per Will and that Will has been probated on 20-12-10 vide LAOP-272/06 of Honorable District Court, Thrissur. Sri. Johny, father of defaulter transferred the hereditarily acquired property in which the defaulter has right to the name of the son of defaulter after the assessment period. If it is done without the defaulter's consent, the defaulter can claim for his right on the property and pay the dues using the land. The said transfer of property can be considered as an effective escape mechanism with defaulter's Will with a bad intention to evade from payment of huge arrears to government, i.e. to the Publi....
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....slative intent of section 65 and prays to quash Ext. P7. 8. A counter affidavit is filed on behalf of the 2nd respondent, the Tahasildar (RR) wherein it is stated that on fresh enquiry it is learnt that the defaulter is living in a highly financial family background with financially sound relatives and friends and is willfully evading from remitting the huge government dues and therefore the District Collector is competent to issue a warrant of arrest against him. It is further stated that Sri Johny, the father of the defaulter transferred his property which was hereditarily acquired by him to the name of defaulter's minor son, after the assessment period and this transaction was done with the clear intention to escape from remitting the government dues. It is contended that Ext. P7 order is issued in accordance with the liberty granted to the District Collector in Ext. P2 judgment. 9. Heard Sri. N.M. Madhu, the learned counsel for the petitioner and Sri. K.M. Faisal, the learned Government Pleader for the respondents. 10. Section 65(1) of the Kerala Revenue Recovery Act, 1968 reads as follows:- '65. Arrest in case of willful and fraudulent non-payment of arrears. - (1....
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.... or some substantial part thereof and refuses or neglects to pay the same." 12. It is true that, in Ext. P2 judgment, while quashing Ext. P1, this Court granted liberty to the District Collector to conduct independent enquiry as to whether the defaulter has means, whether any property is held by the defaulter in benami and whether he has transferred assets to avoid payment to the government. In Ext. P7, the District Collector has no case that any property is held by the defaulter in benami or the defaulter had transferred any of his assets to avoid payment to the government. Their case is that, the father of the defaulter transferred his hereditarily acquired property, in which the defaulter has right, to the name of the defaulter's son without the consent of the defaulter, after the assessment period to evade the payment of arrears to government and if it is done without the defaulter's consent, the defaulter can claim for his right on the property and pay the dues using the property. 13. The 'will' by which the property has been bequeathed to the defaulter's son by the defaulter's father is produced as Ext. P6 and from a perusal of the same it can be see....