Kairali Enterprises V. Assistant Director, Office of the Joint Director, Directorate of Enforcement, Foreign Exchange Management Act, Government of India and Deputy Director, Office of the Joint Director, Directorate of Enforcement, Foreign Exchange Management Act, Government of India and Special Director (Appeals), Commissioner of Income Tax

WP(C)/40414/2018

AI Insights

Kairali Enterprises, represented by its proprietor Zakeer Hussain, filed a writ petition against the orders issued by the 2nd respondent, which initiated recovery steps against the petitioner. The petitioner sought to quash these orders and requested a stay on the proceedings until the appeal and stay petition concerning an earlier adjudication order (Exhibit P3) were decided by the 3rd respondent. The court heard the arguments and decided to keep the recovery proceedings on hold and expedite the consideration of the stay petition by the 3rd respondent.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 689895 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-12-2018
• Assessment Year: misc
• Other Referred Cases: WPC 8392/16, WPC 5154/2017
• Laws Referred To: Foreign Exchange Management Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: C G PREETHA
• Assessee Lawyers: JOSHI THOMAS; ALEENA JOLLY
• Keywords: Adjudication order; Appeal; Recovery Steps; Stay of Proceedings; Stay Petition; Writ of Certiorari; Writ of Mandamus
• Section: 40414

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MRS. JUSTICE ANU SIVARAMAN WEDNESDAY,THE 12TH DAY OF DECEMBER 2018/21ST AGRAHAYANA, 1940 WP(C).No. 40414 of 2018 PETITIONER: KAIRALI ENTERPRISES KOTTACKAL ROAD, TIRUR, MALAPPURAM-676301, REPRESENTED BY ITS PROPRIETOR ZAKEER HUSSAIN, S/O.MUHAMMED, ARACKAL PANDIKASALA, MEENAKADATHOR P.O., THANALLOOR. BY ADVS. SRI.JOSHI N.THOMAS KUM.ALEENA JOLLY RESPONDENTS: 1 ASSISTANT DIRECTOR OFFICE OF THE JOINT DIRECTOR, DIRECTORATE OF ENFORCEMENT, FOREIGN EXCHANGE MANAGEMENT ACT, GOVERNMENT OF INDIA, KANOOS CASTLE, A.K.SHESHADRI ROAD (MULLASERRY CANAL ROAD WEST), COCHIN-682011. 2 DEPUTY DIRECTOR, OFFICE OF THE JOINT DIRECTOR, DIRECTORATE OF ENFORCEMENT, FOREIGN EXCHANGE MANAGEMENT ACT, GOVERNMENT OF INDIA, KANOOS CASTLE, A.K.SHESHADRI ROAD (MULLASERRY CANAL ROAD WEST), COCHIN-682011. 3 SPECIAL DIRECTOR (APPEALS), COMMISSIONER OF INCOME TAX, MAIN BUILDING, 2ND FLOOR NO.121, M.G.ROAD, NUNGAMBAKAM, CHENNAI- 600034. BY ADV. SMT.C.G.PREETHA, CGC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.12.2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No.40414/18 2 JUDGMENT 1. Petitioner has approached this Court seeking the following reliefs:- “i) Issue a writ of certiorari or other appropriate writ or order or direction calling for records leading to Ext.P6 and P7 and quashing the same. ii) Issue a writ of mandamus or appropriate writ or order directing the 2nd respondent to keep proceedings pursuant to Ext.P6 and Ext.P7 in abeyance till the disposal of Ext.P4 Appeal and Ext.P5 stay petition pending before the 3rd respondent Special Director (Appeals). iii) Stay Ext.P6 and Ext.P7 proceedings issued by the 2nd respondent.” 2. Heard learned counsel for the petitioner and the learned Central Government Counsel appearing for the respondents. 3. It is submitted that as against Exhibit P3 adjudication order, the petitioner preferred Exhibit P4 appeal. Ext.P5 stay petition has also been submitted by the petitioner before the 3rd respondent. It is the case of the petitioner that even before the consideration of the stay petition by the 3rd respondent, recovery steps have been initiated against the petitioner by Exhibits P6 and P7 orders. W.P.(C).No.40414/18 3 4. There will be a direction to the 3rd respondent to take up, consider and pass appropriate order on Exhibit P5 stay petition preferred by the petitioner, after hearing the petitioner also within a period of one month from the date of receipt of a copy of this judgment. Recovery steps on the strength of Exhibits P6 and P7 shall be kept in abeyance till orders are passed, as directed. The writ petition is ordered accordingly. Sd/- Anu Sivaraman, Judge sj W.P.(C).No.40414/18 4 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 COPY OF CERTIFICATE OF REGISTRATION DATED 5.6.2007 ISSUED BY THE SALE TAX OFFICER TIRUR. EXHIBIT P2 COPY OF COMPLAINT DATED 30.11.2007 FILED BY THE ASSISTANT DIRECTOR OF ENFORCEMENT CALICUT. EXHIBIT P3 COPY OF ADJUDICATION ORDER (AR)170/KCZO/2013/19 DATED 30.12.2013 ISSUED BY IST RESPONDENT. EXHIBIT P4 COPY OF APPEAL MEMORANDUM DATED 13.2.2014 FILED BEFORE THE 3RD RESPONDENT. EXHIBIT P5 COPY OF STAY PETITION DATED 13.2.2014 FILED BEFORE THE 3RD RESPONDENT. EXHIBIT P6 COPY OF DEMAND NOTICE NO.F.NO.T.5/01/KC20/2018/1470 DATED 24.8.2018 ISSUED TO THE PETITIONER BY THE 2ND RESPONDENT. EXHIBIT P7 COPY OF CERTIFICATE OF RECOVERY DEMAND NO.F NO.T-5/01/KCZO/2018/1932 DATED 24.10.2018 ISSUED BY THE 2ND RESPONDENT ISSUED TO THE PETITIONER. EXHIBIT P8 COPY OF PETITION DATED 12.11.2018 SUBMITTED TO THE 3RD RESPONDENT BY THE PETITIONER. EXHIBIT P9 COPY OF JUDGMENT DATED 4.3.2016 IN WPC 8392/16 (Y) OF THIS HON'BLE COURT. EXHIBIT P10 COPY OF JUDGMENT DATED 16.12.2017 IN WPC 5154/2017 OF THIS HON'BLE COURT. True copy PS to Judge "