State of Kerala vs Sreepoorna Trayeesa Vilasom Bank Ltd.

T.S. Krishnamoorthy Iyer, J.—In execution of the decree in O.S. No. 27 of 1960 on the file of the Sub Court, Ernakulam pending execution in the Sub Court Kottayam the State intervened and claimed for the issue of a cheque in respect of the amounts received in court by sale of certain buses in execution of the decree. The claim was overruled by the court below and the state has filed the appeal. The decree has allowed the decreeholders to realise the decree amount charged upon the buses. The claim of the State is based on Section 13 of the Kerala Motor Vehicles Taxation Act 1963 (Act 24 of 1963). The said provision reads:

Any tax due under this Act shall be recoverable in the same manner as an arrear of land revenue. The Motor Vehicle in respect of which tax is due or its accessories may be detrained and sold in pursuance of this section whether or not such vehicle or accessories are in the possession or control of the person liable to pay the tax.

According to the learned Government Pleader the above Section gives a first charge for vehicle tax in favour of the State and the state is entitled to withdraw the amount deposited in court. We do not find anything in the above provision to create a charge in favour of the State for vehicle tax on the vehicle. The claim of the state therefore cannot prevail against the charge in favour of the decreeholder created by the decree for realisation of the decree amount. The appeal is therefore without merit and we dismiss the same with costs.