AI Insights
The case involves multiple writ petitions concerning the auction sale of land belonging to Vinedale Distilleries, which was auctioned due to tax arrears. Gupta Metallics emerged as the highest bidder but did not pay the remaining 85% of the sale price within the stipulated time, leading to legal disputes over the forfeiture of the deposit and the validity of the auction. The court examined the actions of the Commercial Taxes Department and the implications of the Sick Industrial Companies (Special Provisions) Act, 1985, and the Revenue Recovery Act, 1964, in the context of the auction and subsequent legal challenges.
Appeal Details
Counselvise Citation
[2022] 140 COUNSELVISE.COM (IT) 726614 (HC-TELANGANA)
Assessee PAN
Bench
Appeal Number
CRN Number
Appellant
Respondent
Appeal Type
Others
Pronouncement Date
04-01-2022
Assessment Year
misc
Judgement Text
"HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE FOURTH DAY OF JANUARY TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE SRI JUSTICE UJJAL BHUYAN AND THE HONOURABLE DR. JUSTICE CHILLAKUR SUMALATHA W.P.No.2353 of 2003 WRIT PETITION NO: 2353 OF 2003 Between: Government of Andhra Pradesh, rep. by its District Collector, Ranga Reddy District at Hyderabad. The Board for lndustrial andfinancial-Reconstruction, rep. by its Registrar, Jawahar Vyapar Bhavan, i, Tolstoy Marg, New Delhi. ...Respondents Petition under Article 226 ol the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue any appropriate writ, order or direction, preferably a writ in the nature of Mandamus declaring the actron of the respondents in forefeiting the amount of Rs.61.80 laksh paid by the petitioner company towards 1s% of the price for purchase of land pursuant to gazette notification dated '1 8.1 2.2002 if the balance amount is not paid within 30 days from the date of sale as R.R. Act as being illegal, arbitrary and violative of Article 14 of the constitution of lndia and consequenfly direct the 1st respondent not to forefeit the amount of Rs.6'l .80 lakhs paid by the petitioner pursuant to the sale notice. M/s.^Gupta [ ,4etallics & Power Limited, a company incorporated under the provisions of the companres Act. rep. by its Managing Dirdctoi, lr,4r. Ir/ahesh cupG, Slolsri DEvdutta Gupta, R/o. Gupta Bhawan, SIVp GuptiMarg, Temple Bazar. SltaUulbi frfagpri_aaiOf Z The state of Andhra pradesh, represente^d by it's the commissioner of commerciar Taxes, Government of Andhra eiaoesn, opp c\"iontn-n\"\"ir, 'rmpirri, riii.lrfro AND 1 2 ...PETITIONE WPMP. NO: 094 0F 2003 Petition under section 151 cpc praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be preased to direct the '1\"r respondent not to forfeit the amount of Rs.6.1 .go lakhs deposited by the petitioner company pursuant to the sale notice, pending disposal of the writ petition. WPMP . NO:18271 oF 2003 Between: ... Petitione r/Proposed Respondent No.3 in W.p.No.2353/03 I /', W.P.No.5335 of 2012 AND W.P.No.13206 of 2021 2 AND I M/s. Gupta Meta ics & Power Limited, a company incorporatt:d urder the provisions of the lompanies Act, rep. by its liilanaging Director, fulr. Mahesh Gupta, S/o. Sri D,,vduita Gupta, R/o. Gupta Bhawan, SMP Gtrpta l /arg, Temple Bazar, Sitabuldi,'lagpur-44001 2. ... RespondenUPetitione r in W.P.No.2353/03 2. Government of A rdhra Pradesh, rep. by its District Collector, lRanga Reddy District at Hydera rad. 3. The Board fbr lnd rstrial and Financial Reconstruction, rep. by its Registrar, Jawahar Vyapar t ,havan, 1, Tolstoy lt/arg, New Delhi. ...Respondents Petition under S ,ction 16-4 of writ Rules, praying that in the circumstances stated in the affidavit fi :d in support of the petition, the High court nay be pleased to implead the petitione herein as 3'd respondent in the above Wr t Petition. WVMP. NO: 914 OF 2 AND 1 2 c l Between: The Deputy Commercial -ax Officer, Rajendianigar Circle, Rz rga Reddy District tr//s. Guota Metalli s & Power Limited. a company incorporated uncier lhe liir\"iiJJ;i \"t g* t ,rnpanies Act, rep. bv its Managing-Director Mr Mahesh 6,]Jir'lsl\". sii -D; d,ft; Gupta, R/o. Gupta Bhawan, Slt/P Gupta lr1arg' Temple Baiar, Sitabuldi, N tgPur-440012. ...lmplead Petitioner ... /rit Petitioner ...Petitioner/Proposed Respondent No 3 a GovernmentofAnrhraPradesh'rep.byitsDistrictCollector'R;angaReddy District at HYderab, d. ind fi\"iiO ftriinOu ,trial and Financial Reconstruction, rep. by its Registrar, Jawahar Vyapar Bl avan, 1 , Tolstoy Marg, New Delhi ...Respondents PetitionunderSettionl6.4ofWritRules,prayingthatintheCirCumstances stated in the affidavit file I in.support of the petition, the High court may be pleased to vacate the order dated 07.02 2003 passed in W P No 2353 of 20()3' WPMP . NO: 40023 oF20 t1 Between: M/s.SanmanDistributorsl,rivateLimited,having.itsofficeatLamingtor]Road'Ir,4umbai reoresented by Director a t'ifioii*o i'S\"alory Mr' ^Shib Shanker Sanv]l srn ot tvli Aiit Kumar sanval. ase iil;;;;t' ii;itui ruo zo+' Panchavati Buitdinqs Mumbai il;\"3;,iy h;;s .;;; d;i'n to iryderabad AND 1 tvl/s. Gupta tvletallicr & Power Limited' a company incoroorated under the orovisiohs of the Co nprn,\"t'nii' 'il\"pl pv iG $J;;gi\"g^Director' Iv4r' l'/lahesh Guota. Sio. Sri Devr utta u,pt!,'Cfl o'jpi' eha*in'-SMP Gupt;r Marg Temple Biiar' SitaOutdi, Na tPur-44001 2' ...ResponderrUWrit Petitioner -) 2. Government of Andhra Pradesh, rep. by its District Collector, Ranga Reddy District at Hyderabad. 3. The Board for lndustrial and Financial Reconstruction, rep. by its Registrar, Jawahar Vyapar Bhavan, 1, Tolstoy lVarg, New Delhi. ...Respondents/Respondents 1 and 2 Petition under section 16-A of writ Rules, praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to implead petitioner herern as party Respondent No.3 to the above writ petition. lA NO: 1 OF 2021 Between: I ills vinedale Distrlleries private Limited, company incorporated under the provisions of the lndian Companies Act, having.its register6d dfice ai Cislrp\"fiJii, n:ri;il;;;;g\"r, Ranga Reddy Distnct, represent;d by it; OireciVr. O. Sunil kumar. AND 1. ...Petitioner/Proposed Respondent ...Respondent No.lA/Vrit petitioner M/s..Gupta Metallics & power.Limited, a company incorporated under the H;Ji:iT,'\":!'lBS;fl fi 3%\",'rfl *i:?\"'.I,j,:Yii,li:l'.';Ftft #iryA:?.\"[0,\" Bazar, Sitabuldi, Nagpur-44( 2 3 4 Government of Andhra pradesh, rep. by its District Collector, Ranga Reddy District at Hyderabad. The Board for lndustrial and Financial. Reconstruction, rep. by its Registrar, l?*trf Vyapar Bhavan. 1 . Totstoy lrrars, t{e; b;thi.' I he State of Andhra pradesh, represent6d by it,s the Commissioner of Commerciat Taxes, Government'of Andhra ijrr;;;h; 5pp: oanoni enaran, Nampally, Hyderabad. ...Respondents No.2 to 4/Respondents Petition under section 16-4 of writ Rures, praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be preased to permit the petitioner to be impreaded as Respondent to the above Writ petition, and pending lnterlocutory Applications. counsel for the petitioner: SRr B. ADTNARAYANA RAo, sENroR couNSEL FoR SRI. V. MURALI MANOHAR COUNSEI fOr thE RESPONdENTS: SRI B.S. PRASAD, ADVOCATE GENERAL FOR GP FOR REVENUE Counsel for the proposed Respondent: SRI DAMMALAPATI SRINIVA, SEN|OR COUNSEL FOR SRt n,I. paie neoov Counsel for the proposed Respondent: SRI K.S. MURTHY I WRIT PET ITION NO: 5335 0t 2012 Between: 1 M/s. Sanma r Distributors pvt. Ltd., sharehorder of vine,dare Distiileries p!.1. Ltd.. Ifgysf Mr S.ss^anyat, -Nominee ,ppoini\"i-6v\"i\"ilol\" riln i\"iiisil\"6\"*i iii; order datec 5/6.07.1996 having^ irb' onice Ai aoar'c t_amingtdn cIrrio\"ir] Lamington F tad, Mumbai - AOOO\"O+. - M/s. Vinedar ; Distirreries pvt. Ltd . Having its Registere,r orfice at Gaganpahad, Rajendra Na tar I 4andat. nangi Redoy'Diitii,i'iE\"l'ru€rd (Andhra pradesh) 2 ...PETITIONERS AND 1 2. ., Government ,f Andhra Pradesh, Rep. by the Commissioner of Commercial Taxes, Opp: | ;andhi Bhavan, Nampatty,'FLvdei\"nuJ '- Government r f Andhra pradesh, Rep.-by the principal Ser:retary to Government !.ev^enue (CT tV) Department, Secrdtari6t. fivOeratal ' Mr.S.K.Aggar val. Court Commissioner, Vineiale Distrlleries p,/t. Ltd., Gasanpahad. Banqatore Highway, nalenoranigiiNl;;;ri Ra;'g;'R\"ooy oirtrict, H.yderabad (A rdhra pradesFl YIA[lqg:l vat, CourtCommissioner, Vinedate Distiilerir.,s pvt Ltd,, 1-8, :g11qqrn Jr At arrments, House No.6_3_gSSl10lA, Ameerp€t, Hyderabid _' 500016. (Andt ra Pradesh) tt//s Gupia Me :allics & poiver Limited. Througtr its Managirrg Director, Mr.Mahesh Gupta, S/o St'i Devdurta Gupra, R/o. c Jpli-eni;in 5[/i;\"c,;pi;'M;6: f#;r;' Bazar, Sitabuk i, Nagpur (lr/aharishtra). ...RESPONDENTS 4 5 Petition undt r Articre 226 of the constitution of rndia praying that in the circumstances stated in the affidavit filed therewith, the High court rnay be pleased to issue a writ, order or lirection, in the nature of writ of Mandamus declaring the notice of sale of land of the properties of petitioner No.2 taken out on 1 g.1 2.2002 and the subsequent auction p oceedings arising there from as bad, illegal, unreasonabre and in violation of Articler 14 and 300-4 of the constitution of lnc ia and consequen y declare the impugne( Memo No.s36s8/cr-lv/2ol'1-i dated 0,1.02.2012 issued by Respondent No.2 as n rn-est in law, unenforceable and illegal. WPMP. NO: 6786 0F: C12 Petition under S :ction 151 cPC praying that in the circumstances stated in the affidavit filed in suppo 1 of the petition, the High court may be pleased to restrain Respondent No.1 froi I acting upon the impugned Memo No.536 SBICT-tVlzoj1-1 dated 04.02.2012 issu( J by Respondent No.2 and / or transferrin,; any right, title and interest in the propert:s of the Petitioner No.2 in favour of Respondent No.5 by confirmation of sale or t thenryise, Pending disposal of the writ petit on. Counsel for the Petitio rers: SRI DAMMALAPATI SRINIVAS, SENIOR COUNSEL FOR SRI. M. PAPA REDDY Counsel for the Respor dent Nos.1 & 2: SRI B.S. PRASAD, ADVO'CA'IE GENERAL FOR GP FOR COMMETTCIAL TAX Counsel for the Respor dent No.3: SRI CH. PUSHYAM KIRAN Counsel for the Respor dent No.4: NONE APPEARED Counsel for the Respon lent No.S: SRI B. ADINARAYANA RAO, SENIOR COUNSEL FOR SRI VEDULA,SRINIVAS 5 Between: M/s. Gupta Metallics and Power Limited, Rep. by its Authorized Signatory, Mr. Satish Gudaru, S/o. G Srinivasulu Naidu, Aged about 48 years, R/o. HIG-I , 5th Phase KPHB Colony, Hyderabad - 500072, Telangana. ...PETITIONER AND 1. State of Telangana, Rep. by its Principal Secretary, Commercial Taxes Department, Secretariat, Hyderabad. 2. Commissioner of Commercial Taxes, Govt. of Telangana, Commercial Taxes Building, Opp. Gandhi Bhavan, Nampally Station Road, Hyderabad. 3. M/s. Sanman Distributors Pvt. Ltd., 394/C, Laminton Chambers, Laminton Road, Ivlumbai, 400004. 4. M/s.Vinedale Distilleries P i't. Ltd., Gaganpahad, Rajendranagar Mandal, R.R. District. ...RESPONDENTS Petition under Article 226 of lhe Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus or any other appropriate Writ, Order or Orders, Direction or Directions to declare the inaction on the part of the respondents '1 and 2 in considering the representation of the petitioner dated 31/05/2021 and taking steps for protecting the land admeasuing Ac.13.50 Cents in Sy.Nos.58 and 59 of Gaganpahad Village, Rajendranagar Mandal, R.R. District as illegal, arbitrary and unconstitutio na l, and to issue a consequential direction to the respondents 1 and 2 to take steps for protecting the land admeasuring Ac.13.50 Cents in Sy.Nos.58 and 59 of Gaganpahad Village, Rajendranagar Mandal, R.R. District which was the subject matter of auction under the R.R. Act on 10/01/2003 in which the petitioner was the successful bidder, till the disposal of W.P.No.2353 of 2003 and 5335 of 2012. fA NO: 1 OF 2021 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondents 1 and 2 to take steps for protecting the land admeasuring Ac.13.50 Cents in Sy. Nos.58 and 59 of Gaganpahad Village, Rajendranagar Mandal, R.R. District which was the subject matter of auction under the RR Act on 10.01.2003 in which the petitioner was the successful bidder, from illegal encroachments and from any activities being carried on in the same, pending disposal of the Writ Petition. lA NO: 2 OF 2021 Between: M/s.Vinedale Distilleries. Limited, Gaganpahad, Rajendranagar Mandal, Ranga Reddy District, rep. by its authorised representaiive and Director SriD. Sunil KLmar.- AND ...Petitioner/Respondent No.4 M/s. Gupta tvletallics and Power Limited, Rep. bv its Authorized Sionatorv. IMr Satish Gudaru, S/o. G Srinivasulu Naidu, Aged about 4g years, nyo]tilG-l , Sin Phase KPHB Colony, Hyderabad - 500072. Tllangana. 1 2 ....Respondent No.1/Petitioner State of Telangana, Rep. by its Department, Secretariat, Hyderabad. Principal Secretary, Commercial Taxes WRIT PETITION NO: 13206 OF 2021 6 3. Commissioner of Commercial Taxes, Govt. of Telangana, Cotnmercial Taxes Building, Opp. Gr ndhi Bhavan, Nampally Station Road, Hyde'abad. - 4. M/s. Sa'nman Dis ributors Pvt. Ltd.,394/C, Laminton Chambe's, Laminton Road, Mumbai, 400004 ...Respondents 2-4lRespondents 1 to 3 Petition under Sr ction 151 CPC praying that in the circumstanc.es stated in the affidavit filed in supporl of the petition, the High court may be plt.,aserd to vacate the exparte interim orders by in l.A.No.1 o't 2021 in w.P.No.13206 of 2021 dated 14t0612021 . Counsel for the Petitior rer: SRI B. ADINARAYANA RAO, SENIOR COUNSEL FOR SMT. VEDULA CHITRALEKHA Counsel for the Respor dent Nos.1 & 2: SRI B.S. PRASAD, ADVOCA'rE GENERAL FOR GP FOR COMMERCIAL TAX Counsel for the Respor dent No.3: SRI VIMAL VARMA VAMIREDDY Counsel for the Respor dent No.4: SRI DAMMALAPATI SRINIVASi' SENIOR COUNSEL FOR SRI SUNIL 13. GANU The Court made the foll )wing: COMMON ORDER THE HON'BLE SRJ JUSTICE UJJAL BHUYAN AND THE HON'BLE DR...'USTICE CHILLAI{UR SUMALATHA COMMON JUDGIVI ENT AND ORDER,: (Per Hon'ble Sd Juslice L jjal Bhuvanl All the three writ petitions were heard together and a_re being disposed of by this common judgment and order. oi 2072. 3 This wt'it petition has been fiied by the peritioner M/s. Gupta Metallics & power Limited. Initiall-v, the Government of Andhra Pradesh. representerl by the District Collector:, Ranga Reddy District anrl the Board for Industrial anri Financial Reconstruction were arrayecl as respon(i ents. 4 Bv- liting this writ petitiorr under Article 226 of the, Constitution of India, petitioner M/s. Gupta Metallics & power Limited (for shor:t, ,Gupta Metallics,, hereinafter) se eks a W.P.No.2353 OF 2OO3 W.P.No.5335 OF 2O12 4rryD W.P.No.132O6 OF 2O?l 2 We have heard Sri Dammalapati Srinivas, learned senior counsel for the petitioners in W.p.No.S335 of 2012, respondent No.4 in W.P.lto.2353 of 2003 arrd W.p.No. 13206 of 2021; Sri B.S.Prasad, learned Advocate General for the State respondents in all t}te three writ petitions; anci Sri B.Aclinarayana Rao, learned senior counsel for the petitioners in W.p.No.2353 of 2003 and 13206 of 2021 and respondent No.5 in W.p.N<.r.5335 W.P.No.2353 of 20OG: 2 declaration that the action of the respondents in forfeiting an amount of Rs. r1,80,000-00 paid bv the petitioner Cupta Metallics towar' ts 157o of the price for pttrchase of tlie auctioned land pursuant to Gazette Notilication dated 18.12.2002, if t} : balance amount was not paid within 30 days from the date of sale is arbitrary, unreasonable and illegal and seeks a directior to the hrst respondent not to forfeit the said Amount of Rs.6 1 80,000-00. 5 Case of tb: petitioner Gupta Metallics is thr'rt it is a company incorpc rated under the Companies Act, 1956, having its registered ofl ce at Nagpur in the State of Maharashtra' Gupta Metallics s carrying on the business of trading in coal products. First rt spondent in accordance with the provisions of the Andhra Prac esh Revenue Recovery Act, 1U64 (lor short, \"Revenue Recove ry Act\" hereinafter) and the Rules framed thereunder, issu:d a Gazette Notification on l8 l'2'2002, whereby the prop :rty mentioned in the said Gazette rvas being put to auction sa-l :. 6 Pursuant t< the Gazette Notification, petitioner Gupta Metallics approac red the hrst respondent ald participated in the auction sale that was held on 10'0 1'2O03 in which it became the highe rt bidder' It is state
Other Referred Cases
Manilal Mohanlal Shah Vs. Sardar Sayed Ahmed Sayed Mahmad, Shilpa Shares and Securities vs. National Co-operative Bank Limited, C.N. Paramsivam vs. Sunrise Plaza Tr. Partner
Laws Referred To
Article 226 of the Constitution of India, Revenue Recovery Act, 1964, Sick Industrial Companies (Special Provisions) Act, 1985, Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
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