N. SUVEENDRAN V. THE COMMISSIONER,

WP(C)/6509/2025

AI Insights

The case involves two writ petitions, W.P.(C) No.1855 of 2025 and W.P.(C) No.6509 of 2025, filed by siblings Sri. Raveendran and Sri. Suveendran, respectively, concerning the business 'MRT Metal Mart' founded by their father. After the father's death, disputes arose over the business's control and GST registration, which was transferred to Sri. Raveendran. The State Tax Officer canceled this registration, leading to the filing of these petitions. Sri. Suveendran sought to halt unauthorized activities by Sri. Raveendran and ensure the security of the business's stock, while Sri. Raveendran aimed to expedite the revocation of the registration cancellation. The court's decision addressed the procedural handling of these disputes and the interim measures to protect the business's assets pending a final decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 690863 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 08-04-2025
• Assessment Year: misc
• Other Referred Cases: O.S.No.172/2022
• Laws Referred To: Central Goods and Services Tax Rules, 2017
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: PREMJIT NAGENDRAN; M R ANANDAKUTTAN
• Assessee Lawyers: PARVATHI KRISHNA K ACHYUTH MENON; NIRMAL KRISHNAN
• Keywords: Business succession; GST registration; Interim application; Receiver appointment; Revocation of cancellation; Dispute between siblings
• Section: 23(1)

Judgement Text

"WP(C) Nos.1855/2025 and 6509/2025 1 2025:KER:31007 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 8TH DAY OF APRIL 2025 / 18TH CHAITHRA, 1947 WP(C) NO. 1855 OF 2025 PETITIONER : MR.N. RAVINDRAN PROPRIETOR, MRT METAL MART, T.C.71/5276, CHALAI, MANACAUD, THIRUVANANTHAPURAM, PIN - 695036 BY ADVS. PARVATHI S KRISHNA K ACHYUTH MENON(K/584/2017) NIRMAL KRISHNAN(K/1111/2021) T.K.SREEKALA(K/000246/1987) NIKITHA SUSAN PAULSON(K/001533/2019) UTHARA ASOKAN(K/001361/2020) ANAND GEO(K/2561/2023) K.I.MAYANKUTTY MATHER (SR.)(K/272/1984) RESPONDENTS : 1 THE STATE TAX OFFICER TAXPAYER SERVICES, CIRCLE POOJAPPURA, STATE GOODS AND SERVICES TAX DEPARTMENT, THIRUVANANTHAPURAM, KERALA, PIN - 695002 * 2 ADDL.R2 IS IMPLEADED SRI.N. SUVEENDRAN, T.C.29/3691/1, M.P. APPAN ROAD, VAZHUTHACAUD, THIRUVANTHAPURAM, PIN – 695 014 WP(C) Nos.1855/2025 and 6509/2025 2 2025:KER:31007 * ADDL.R2 IS IMPLEADED AS PER ORDER DATED 23.01.2025 IN I.A.1/2025. * 3 * ADDL.R3 IS IMPLEADED SUSEELA, W/O LATE NATARAJAN, AGED 67, RESIDING AT SREE HOUSE, NSS COLLEGE ROAD, NIRAMANKARA, KAIMANAM, NEMOM VILLAGE, THIRUVANANTHAPURAM, PIN – 695 002 ADDL.R3 IS IMPLEADED AS PER ORDER DATED 24.02.2025 IN I.A.2/2025 IN WP(C)1855/2025. BY ADVS. PREMJIT NAGENDRAN M.R.ANANDAKUTTAN M.HEMALATHA MAHESH ANANDAKUTTAN DONA AUGUSTINE BY SMT.JASMIN M.M., GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.04.2025, ALONG WITH WP(C).6509/2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) Nos.1855/2025 and 6509/2025 3 2025:KER:31007 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 8TH DAY OF APRIL 2025 / 18TH CHAITHRA, 1947 WP(C) NO. 6509 OF 2025 PETITIONER : N. SUVEENDRAN AGED 45 YEARS S/O LATE T. NATARAJAN, T.C.29/3691/1 M.P. APPAN ROAD, VAZHUTHACAUD, THIRUVANTHAPURAM, PIN – 695 014 BY ADV PREMJIT NAGENDRAN RESPONDENTS : 1 THE COMMISSIONER, CGST & CENTRAL EXCISE GST BHAVAN STATUE, PALAYAM THIRUVANTHAPURAM, PIN - 695001 2 R MALAMAHESHWARI AGED 52 YEARS, SREE HOUSE, N.S.S. COLLEGE ROAD NEERAMANKARA, KAIMANAM, NEMOM VILLAGE THIRUVANTHAPURAM, PIN – 695 002 3 N. RAVEENDRAN AGED 52 YEARS, SREE HOUSE, N.S.S. COLLEGE ROAD NEERAMANKARA, KAIMANAM, NEMOM VILLAGE, THIRUVANTHAPURAM, PIN - 695002 4 THE STATE TAX OFFICER TAXPAYER SERVICES, CIRCLE POOJAPURA STATE GOODS AND SERVICE WP(C) Nos.1855/2025 and 6509/2025 4 2025:KER:31007 TAX DEPARTMENT THIRUVANTHAPURAM, KERALA, PIN – 695 002 * 5 * ADDL.R5. IS IMPLEADED TAMILNAD MERCANTILE BANK, THIRUVANANTHAPURAM BRANCH, REP. BY IT’S MANAGER, THIRUVANANTHAPURAM ADDL.R5 IS IMPLEADED VIDE ORDER DATED 04-04-2025 IN I.A.NO.2/2025 IN WP(C) 6509/2025 BY ADVS. Girish Kumar V KRISHNA K ADVOCATE GENERAL OFFICE KERALA V.V.SURENDRAN ACHYUTH MENON(K/584/2017) NIRMAL KRISHNAN(K/1111/2021) PARVATHI S T.K.SREEKALA(K/000246/1987) NIKITHA SUSAN PAULSON(K/001533/2019) UTHARA ASOKAN(K/001361/2020) ANAND GEO(K/2561/2023) K.I.MAYANKUTTY MATHER (SR.)(K/272/1984) P.A.HARISH DONA PAUL SHILPA K. BY SMT.JASMIN M.M., GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.04.2025, ALONG WITH WP(C) NO.1855/2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) Nos.1855/2025 and 6509/2025 5 2025:KER:31007 BECHU KURIAN THOMAS, J. =-=-=-=-=-=-=-=-=-=-=-=-=-=- W.P.(C).Nos.1855 of 2025 & 6509 of 2025 =-=-=-=-=-=-=-=-=-=-=-=-=-= Dated this the 8th day of April, 2025 COMMON JUDGMENT In W.P.(C) No.1855 of 2025, petitioner has sought for a direction to dispose of Ext.P8 application expeditiously, while the petitioner in W.P.(C) No.6509 of 2025 has sought for a direction to consider and pass orders on Ext.P3 therein and also to ensure that the stock of an erstwhile establishment by name ‘MRT Metal Mart’ is secured and not clandestinely removed and sold. 2. The disputing parties - Sri. Raveendran and Sri. Suveendran are siblings. They have another brother by the name of Maheendran. W.P.(C) No.1855 of 2025 is filed by Sri. Raveendran while W.P.(C) No.6509 of 2025 is filed by Sri. Suveendran. Their father had started a business establishment by name ‘MRT Metal Mart’. As is often the case, after the time of the originator of a business, the legal heirs engage themselves in disputes leading to severe acrimony between them. Similar issues seems to have arisen in the instant case as well. After the death of the petitioner's father, GST registration of the MRT Metal Mart was transferred in the name of Sri. N. Raveendran. Subsequently, the first WP(C) Nos.1855/2025 and 6509/2025 6 2025:KER:31007 respondent cancelled the registration of the said establishment by order dated 10.01.2025 as per Ext.P11. Consequent to the said cancellation, an application was filed by Sri. Ravieendran for revocation of the cancellation of registration as per Rule 23(1) of the Central Goods and Services Tax Rules, 2017. Immediately after filing the said application, he approached this Court through W.P.(C) No.1855 of 2025, seeking a direction to dispose of the application. 3. Sri. Suveendran impleaded in the said writ petition as he wanted the competent authority to consider his version also, while considering the application for revocation of cancellation of registration. According to him, there are various disputes between the siblings regarding the entitlement of Sri.Raveendran to continue the business and a civil suit as O.S.No.172/2022 is also pending between the parties. Sri.Suveendran alleges that some of the documents produced by Sri.Raveendran to justify his claim for entitlement to continue the business, are forged. 4. in the meantime, Sri. Suveendran filed W.P.(C) No.6509 of 2025 to dispose of a representation dated 10.02.2025 filed by him before the first respondent in that writ petition. In the said representation, he has pointed out various anomalies, which according to him requires the attention of the first respondent and the unauthorised activities allegedly being carried out by Sri.Raveendran ought to be halted. WP(C) Nos.1855/2025 and 6509/2025 7 2025:KER:31007 5. Sri. Raveendran who is the third respondent in the said writ petition has filed a counter affidavit, pointing out that in the civil suit filed as O.S.No.172 of 2022, an interim application was filed for appointment of a receiver and the Sub Court had, by order dated 10.04.2023, refused to appoint a receiver after observing that the accounts of the business and the details of the stock and the transactions involved and the profits generated in respect of the business MRT Metal Mart should be filed every three months. According to Sri. Raveendran, his brother is attempting to obtain indirectly what he was denied in the civil suit and that Article 226 of the Constitution of India cannot be resorted to when the civil court had declined such a relief. It is also pointed out that FAO No.91 of 2023 had been filed before this Court and no orders had been obtained till date and therefore this Court ought not to grant any of the reliefs prayed for. 6. I have heard Sri.Mayankutty Mather, the learned Senior Counsel, instructed by Smt.S.Parvathy, the learned counsel for the petitioner, Sri.Premjith Nagendran, the learned counsel for the additional 2nd respondent, Sri.V.Girishkumar, the learned Standing Counsel for the first respondent as well as Smt.Jasmin M.M., the learned Government Pleader. I have also heard Sri.P.A.Harish, representing Sri.V.V.Surendran, the learned Standing Counsel appearing on behalf of the Bank, who has filed an impleading petition. 7. As far as W.P.(C) No.1855 of 2025 is concerned, the relief WP(C) Nos.1855/2025 and 6509/2025 8 2025:KER:31007 sought for, is only to dispose of a statutory application. Since such an application for revocation of cancellation of registration has to be disposed of in a time bound manner, the said relief has to be allowed. As the additional 2nd respondent is apparently an interested party, his contentions should also be considered. Therefore, Ext.P8 in W.P.(C) No.1855 of 2025 can be directed to be considered in a time bound manner, after granting an opportunity of hearing to the petitioner as well as to additional respondents 2 and 3 as well as another legal heir by name Mahendran. The said decision shall be taken, as expeditiously as possible, at any rate, within a period of three weeks from the date of receipt of a copy of this judgment. 8. Since this Court was inclined to direct Sri. Suveendran also to be heard before the application for revocation of cancellation of registration is disposed off, relief No.1 in W.P.(C) No.6509 of 2025 is not required to be granted as it becomes practically redundant. 9. In this context, it needs to be mentioned that during the pendency of W.P.(C) No.6509 of 2025, this Court had, on 27.02.2025 directed the 4th respondent to ensure that the existing stock of the MRT Metal Mart is not removed without getting further orders from this Court, since there was a complaint that after the cancellation of registration, the existing stock were being clandestinely removed. Thereafter on 20.03.2025, this Court directed respondents 1 and 4 to seal forthwith the WP(C) Nos.1855/2025 and 6509/2025 9 2025:KER:31007 godowns of the erstwhile MRT Metal Mart pursuant to I.A.No.1 of 2025. 10. Though arguments were addressed by either counsel on the correctness of the order directing sealing of the godowns, especially since the application for appointment of a receiver was declined by the court, I am of the view that the direction to seal the godown of the erstwhile MRT Metal Mart was not on the basis of the dispute between the parties, but solely because of the cancellation of registration and when the registration of a business entity has been cancelled, to protect the rights of all the parties including that of the bank, till a decision is taken by the Commissioner regarding the application for revocation of cancellation, it is only appropriate that the goods in the godown are not permitted to be removed. Therefore, the life of the order dated 20.03.2025 which is confined to the erstwhile MRT Metal Mart godown, must continue till a decision is taken by the first respondent as directed in W.P.(C) No.1855 of 2025. 11. The learned Senior Counsel pointed out that on the basis of the interim order, various godowns including those unrelated to MRT Metal Mart have been sealed. I make it clear that the order dated 20.03.2025 is confined to the godown of the erstwhile MRT Metal Mart alone and not anything else. The said order shall continue till the Commissioner takes a decision. If any godown other than MRT Metal Mart has been sealed, the aggrieved is at liberty to point it out to the 4th WP(C) Nos.1855/2025 and 6509/2025 10 2025:KER:31007 respondent in W.P.(C) No.6509 of 2025 for appropriate relief. In the result the following directions are issued : 1. The first respondent in W.P.(C) No.1855 of 2025 shall consider Ext.P8 and pass appropriate orders as expeditiously as possible, at any rate, within a period of four weeks from the date of receipt of a copy of this judgment, after granting an opportunity of hearing to the petitioner in that writ petition as well as to additional respondents 2 and 3. Sri.Maheendran, another brother of the petitioner shall also be issued with the notice of hearing and his address shall be furnished by the petitioner. 2. The order dated 20.03.2025 shall continue till a decision is taken by the first respondent as directed in (1) above. 3. It is clarified that the order dated 20.03.2025 directing to seal the godowns is confined to the erstwhile MRT Metal Mart godowns and if any godown other than that of MRT Metal Mart has been sealed, the aggrieved is at liberty to point it out to the 4th respondent in W.P.(C) No.6509 of 2025 for appropriate relief. These writ petitions are disposed of as above. Sd/- BECHU KURIAN THOMAS, JUDGE RKM WP(C) Nos.1855/2025 and 6509/2025 11 2025:KER:31007 APPENDIX OF WP(C) 1855/2025 PETITIONER'S EXHIBITS : Exhibit P1 TRUE COPY OF THE REGISTRATION CERTIFICATE ISSUED IN THE NAME OF THE PETITIONER IN ERSTWHILE BUSINESS BY NAME 'BRINDA METAL MART’ Exhibit P2 TRUE COPY OF THE DEATH CERTIFICATE DATED 20.11.2021 Exhibit P3 TRUE COPY OF LEGAL HEIRSHIP CERTIFICATE DATED 28.12.2021 Exhibit P4 TRUE COPY OF TAMIL VERSION OF THE WILL AND ENGLISH TRANSLATION OF THE SAME Exhibit P5 TRUE COPY OF FORM GST REG-06 DATED 3.12.2021 Exhibit P6 TRUE COPY OF NO OBJECTION CERTIFICATE FILED BY THE WIDOW OF SRI. T.NATARAJAN, SUSEELA Exhibit P7 TRUE COPY OF NO OBJECTION CERTIFICATE FILED BY SRI.T.RATNA PANDYAN Exhibit P8 TRUE COPY OF FORM GST REG-17 DATED 11.12.2021 Exhibit P9 TRUE COPY OF LETTER DATED 26.12.2024 ALONG WITH THE ANNEXURE Exhibit P10 TRUE COPY OF ORDER DATED 10.1.20215 Exhibit P11 TRUE COPY OF FORM GST REG-19 DATED 13.1.20215 Exhibit P12 TRUE COPY OF THE APPLICATION IN FORM IN GST REG-21 ALONG WITH ANNEXURES Exhibit P13 TRUE COPY OF INCOME TAX RETURN FOR THE ASSESSMENT YEAR 2023-24 DATED 31.10.2023 WP(C) Nos.1855/2025 and 6509/2025 12 2025:KER:31007 RESPONDENTS' ANNEXURES : ANNEXURE R2(A) A TRUE COPY OF THE ORDER OF THE DISCIPLINARY COMMITTEE OF THE BAR COUNCIL OF TAMIL NADU AND PUDUCHERRY IN D.C.C. 79 OF 2024 DATED 22.11.2024 ANNEXURE R2(B) A TRUE COPY OF THE ORDER PASSED BY THE PRINCIPAL SESSIONS JUDGES COURT, TIRUNELVELI IN CR. M.P. NO 12549/2023 DATED 12.10.2023. ANNEXURE R2(C) A TRUE COPY OF THE ORDER DATE 09.01.2022 PASSED BY THE ASSISTANT COMMISSIONER GOODS AND SERVICES TAX ACT THIRUVANTHAPURAM ANNEXURE R2(D) A TRUE COPY OF THE SAID REPRESENTATION MADE BY THE APPLICANT BEFORE THE FIRST RESPONDENT DATED 17.01.2025 PETITIONER'S EXHIBITS : Exhibit R1(a) TRUE COPY OF PLAINT IN O.S.172/2022 BEFORE THE SUB COURT ,THIRUVANANTHAPURAM Exhibit R1(b) TRUE COPY OF JUDGMENT DATED 13.7.2022 IN W.P.(C) 29691 OF 2021 Exhibit R1(c) TRUE COPY OF THE ORDER DATED 3.11.2023 IN CRL.OP NOS.18806, 18834 AND 18944 OF 2023, THE MADURAI BENCH MADRAS HIGH COURT. RESPONDENTS' EXHIBITS : EXHIBIT R2(A) A TRUE COPY OF THE ORDER OF THE DISCIPLINARY COMMITTEE OF THE BAR COUNCIL OF TAMIL NADU AND PUDUCHERRY IN D.C.C. 79 OF 2024 DATED 22.11.2024. EXHIBIT-R2(B). A TRUE COPY OF ORDER PASSED BY THE PRINCIPAL SESSIONS JUDGES COURT, TIRUNELVELI IN CR. M.P. NO 12549/2023 DATED 12.10.2023. WP(C) Nos.1855/2025 and 6509/2025 13 2025:KER:31007 EXHIBIT-R2(C). A TRUE COPY OF ORDER PASSED BY THIS HON’BLE COURT IN O.P.(C) 1113/2024 DATED 07.01.2025. EXHIBIT-R2 (D). A TRUE COPY I.A. 17/2024 IN O.S. 172 OF 2022 UNDER ORDER 39 RULE 2A FILED BY THE ADDITIONAL 2ND RESPONDENT EXHIBIT-R2 (E) A TRUE COPY OF THE ORDER DATE 09.01.2022 PASSED BY THE ASSISTANT COMMISSIONER GOODS AND SERVICES TAX ACT THIRUVANTHAPURAM EXHIBIT-R2 (F) A TRUE COPY OF THE REPRESENTATION MADE BY THE SECOND RESPONDENT BEFORE THE FIRST RESPONDENT DATED 17.01.2025 EXHIBIT-R2(G) TRUE COPY OF AN ADDITIONAL WRITTEN STATEMENT JOINTLY FILED BY THE WRIT PETITIONER, MY MOTHER AND MY YOUNGER BROTHER MAHENDRAN IN O.S. 172/ 2022. WP(C) Nos.1855/2025 and 6509/2025 14 2025:KER:31007 APPENDIX OF WP(C) 6509/2025 PETITIONER'S EXHIBITS : Exhibit P-1 A TRUE COPY OF THE SAID ORDER NO. 32ABJPN9841J1ZA/2024-25 DATED 10-01-2025 Exhibit P-2 A TRUE COPY OF THE SCREEN SHOT OF THE GST WEBSITE SHOWING THE GRANT OF REGISTRATION IN FAVOUR OF THE SECOND RESPONDENT UNDER THE NAME SRI MRT METALS Exhibit P-3 A TRUE COPY OF THE REPRESENTATION MADE BY THE PETITIONER BEFORE THE FIRST RESPONDENT DATED 14.02.2025 EXHIBIT P-4 A TRUE COPY OF THE COMMUNICATION SENT BY THE PETITIONER TO THE FOURTH RESPONDENT DATED 10.03.2025 EXHIBIT P-5 A TRUE COPY OF THE SAID COMMUNICATION SENT BY THE FOURTH RESPONDENT TO THE PETITIONER DATED 11.03.2025 EXHIBIT P-6 A TRUE COPY OF THE W.P.(C) 29691/2021FILED BY THE 3RD RESPONDENT EXHIBIT P-7 A PHOTOCOPY OF A CERTIFIED COPY OF THE UDHYAM CERTIFICATE OBTAINED FROM THE SUB COURT THIRUVANTHAPURAM IN O.S. 172/2022 RESPONDENTS' EXHIBITS : EXHIBIT R2 (A) TRUE COPY OF THE REGISTRATION CERTIFICATE DATED 28.01.2025 ALONG WITH THE ADDITIONAL PLACES OF BUSINESS EXHIBIT R2 (B) TRUE COPY OF THE LEASE AGREEMENT DATED 22.01.2025 EVIDENCING LEASING OF PROPERTIES BETWEEN THE DEPONENT AND THE LANDLORDS EXHIBIT R2 (C) TRUE COPY OF THE LEASE AGREEMENT DATED WP(C) Nos.1855/2025 and 6509/2025 15 2025:KER:31007 23.01.2025 EVIDENCING LEASING OF PROPERTIES BETWEEN THE DEPONENT AND THE LANDLORDS EXHIBIT R2 (D) TRUE COPIES OF THE LEASE AGREEMENT DATED 18.02.2025 EVIDENCING LEASING OF PROPERTIES BETWEEN THE DEPONENT AND THE LANDLORDS EXHIBIT R3(A) TRUE COPY OF THE FORM GST INS 02 EXHIBIT R4(A) TRUE COPY OF THE INTIMATION TO THE RESPONDENTS DATED 01/03/2025 - O/O. THE STATE TAX OFFICER, TAXPAYER SERVICES CIRCLE EXT.R3(A) TRUE COPY OF THE GST REGISTRATION CERTIFICATE OF MRT METAL MART DATED 16.07.2018 EXT.R3(B) TRUE COPY OF THE GST REGISTRATION CERTIFICATE DATED 17.07.2018 HELD BY ME PERTAINING TO BRINDA METAL MART EXT.R3(C) TRUE COPY OF THE WILL DATED 04.11.2021 ALONG WITH ITS ENGLISH TRANSLATION EXT.R3(D) TRUE COPY OF THE THE AMENDED REGISTRATION CERTIFICATE SO OBTAINED BY ME DATED 17.11.2021 EXT.R3(E) TRUE COPY OF THE AMENDED GST REGISTRATION CERTIFICATE DATED 03.12.2021 EXT.R3(F) TRUE COPY OF THE AMENDED PLAINT IN OS NO.172/2022 DATED 20.03.2023 EXT.R3(G) TRUE COPY OF THE ORDER OF THE SUB COURT, THIRUVANANTHAPURAM DATED 10.04.2023 EXT.R3(H) TRUE COPY OF THE P AND L ACCOUNT FOR THE PERIOD UP TO 15.11.2021 (TILL THE DATE OF DEATH OF MR.NATARAJAN) AND FOR THE PERIOD UP TO 31.03.2022 "