SECRETARIAT OF THE KERALA LEGISLATURE

NOTIFICATION

No. 4877/Legn. 1/2012/Leg.

Dated, Thiruvananthapuram, 16th October 2012.

The Kerala Revenue Recovery (Amendment) Bill, 2012 together with the

Statement of Object and Reasons, the Financial Memorandum and the

Memorandum regarding Delegated Legislation is published, under Rule 69 of the

Rules of Procedure and Conduct of Business in the Kerala Legislative Assembly.

P. K. MURALEEDHARAN,

Secretary-in-charge,

Legislative Assembly.

Kerala Gazette No. 19 dated 16th October 2012.

PART II

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Thirteenth Kerala Legislative Assembly

Bill No. 141

THE KERALA REVENUE RECOVERY (AMENDMENT) BILL, 2012

A

BILL

further to amend the Kerala Revenue Recovery Act, 1968.

Preamble.—WHEREAS, it is expedient further to amend the Kerala Revenue

Recovery Act, 1968 for the purposes hereinafter appearing;

BE it enacted in the Sixty-third Year of the Republic of India,

as follows:—

1. Short title and commencement.—(1) This Act may be called the Kerala

Revenue Recovery (Amendment) Act, 2012.

(2) It shall be deemed to have come into force on the 22nd day of

July, 1997.

2. Amendment of section 2.—In section 2 of the Kerala Revenue Recovery

Act, 1968 (15 of 1968), (hereinafter referred to as the principal Act), after clause

(b), the following clause shall be inserted, namely:—

“(ba) “collection charges” mean the charges payable to the Government

by a defaulter, at such rate as may be prescribed, towards the recovery and

collection of an arrear of public revenue due on land;”.

3. Amendment of the section 5.—In section 5 of the Principal Act,—

(a) The existing provision shall be numbered as sub-section (1) of that

section and in sub-section (1) as so numbered, in the opening sentence, for the

words “and cost of process”, the words “cost of process and collection charges”

shall be substituted;

(b) after sub-section (1), the following sub-section shall be inserted,

namely:—

“(2) It shall be competent for the Government to realise collection

charges for the recovery of arrears and notwithstanding the mode of recovery

specified in sub-section (1), in the case of collection charges payable in respect

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of collection of arrears on behalf of any institution notified under section 71 or

on behalf of any other statutory body or institution to which the provisions of

this Act is applicable, the same may be collected from such institution or

statutory body in advance at such rates as may be prescribed, which shall be

refunded to such statutory body or institutions, as the case may be, as soon as

it is recovered from the defaulters”.

4. Amendment of the section 71.—In section 71 of the Principal Act, in the

proviso, after the words “collection charges”, the words “in advance” shall be

inserted.

5. Amendment of the section 77.—In section 77 of the Principal Act, after

the words and figure “batta mentioned in section 76” the words “and collection

charges” shall be inserted.

6. Validation.—Notwithstanding anything contained in any judgement,

decree or order of any court or authority, the collection charges recovered from

a defaulter or any institution notified under section 71 of the principal Act or

from a statutory body or institution, in respect of recovery of arrears of public

revenue due on land collected on behalf of such institution or statutory body or

Government between the period on and from the date of commencement of this

Act till the date of publication of this Act in the official Gazette shall be deemed

to have been validly collected under the provisions of the principal Act as

amended by this Act as if it could have been collected under the principal Act if

the same were in force during the said period as amended by this Act and no

suit or legal proceedings in respect of legality of the recovery of such collection

charges or claiming refund or adjustment of such amount shall be maintainable

before any civil court or any authority.

STATEMENT OF OBJECTS AND REASONS

In the proviso to section 71 of the Kerala Revenue Recovery Act, 1968

(15 of 1968) it is provided that the institutions or class or classes of institutions

or autonomous bodies notified by the Government shall be liable to pay

collection charges at the rate prescribed by the Government. As such, it has

been so provided in rule 4 and in sub-rule (2) of rule 5 of Kerala Revenue

Recovery Rules, 1982. However, demand for realising the said collection charges

has been challenged before the Honourable High Court in a number of Writ

Petitions and the Honourable High Court set aside such a demand of collection

charges as it is illegal. More over, in Baskaran Vs. Tahsildar [2005(1) KLT 151]

the Honourable High Court held that collection charges shall be recoverable

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only if amounts are collected by the revenue authorities through revenue

recovery proceedings and if the payment is made directly to the requisitioning

authority, no collection charge is leviable. The situation creates huge loss to the

exchequer of the Government by way of expenses incurred for the process of

revenue recovery proceedings. Hence, in order to provide more clarification on

the subject, the Government have decided to incorporate specific enabling

provision in the Act for the realization of collection charges, even in advance

from the requisitioning authorities, by defining the term collection charges and

making consequential amendments in section 5, 71 and 77 of the Act along with

a validation clause for validating the recovery of collection charges already

made.

2. The Bill is intended to achieve the above object.

FINANCIAL MEMORANDUM

The Bill, if enacted and brought into operation, would not involve any

additional expenditure from the Consolidated Fund of the State.

MEMORANDUM REGARDING DELEGATED LEGISLATION

The new clause proposed to be inserted as clause (ba) to section 2 of the

Kerala Revenue Recovery Act, 1968 (15 of 1968) by clause 2 and new

sub-section proposed to be inserted as sub-section (2) of section 5 of the said

Act by sub clause (b) of clause 3 of the Bill seeks to empower the Government

to prescribe the rate of collection charges payable to the Government by the

defaulter and the requisitioning authority in advance, respectively.

The matters in respect of which rules may be made are matters of procedure

and are of routine or administrative in nature. Further, the Rules after they are

made are subject to the scrutiny by the Legislative Assembly. The delegation of

legislative power is, thus, of a normal character.

ADOOR PRAKASH.