N.RAJKUMAR V. UNION OF INDIA

WP(C)/18587/2018

AI Insights

The case involves a group of petitioners who are registered valuers under the Wealth Tax Act, 1957, challenging the new requirements imposed by the Company (Registered Valuers and Valuation) Rules, 2017. These rules, established under the Companies Act, require existing valuers to undergo a 50-hour study to secure their registration. The petitioners sought exemptions from certain rules (specifically Rules 4 and 5) and requested the court to direct the Ministry of Corporate Affairs to expedite the consideration of their representation against these rules. The court's decision was limited to expediting the response to the petitioners' concerns without altering the existing rules.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 722319 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-06-2018
• Assessment Year: misc
• Laws Referred To: Wealth Tax Act, 1957, Companies Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: N NAGRESH; SREEKALA
• Assessee Lawyers: K P SATHEESAN; P MOHANDAS; S VIBHEESHANAN; K SUDHINKUMAR; S K ADHITHYAN; MUHAMMED IBRAHIM ABDUL SAMAD; SABU PULLAN
• Keywords: Registered valuers; Wealth Tax; Writ of Mandamus; Company (Registered Valuers and Valuation) Rules, 2017; Rule 4 and 5 Exemption
• Section: 247

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR. JUSTICE SHAJI P.CHALY WEDNESDAY, THE 6TH DAY OF JUNE 2018 / 16TH JYAISHTA, 1940 WP(C).No. 18587 of 2018 PETITIONERS : 1 N. RAJKUMAR, RAJATH, EVRA 305, EASWARA VILASAM ROAD, JAGATHY, THIRUVANANTHAPURAM-695014. 2 G. VELAYUDHAN NAIR, VIGI, KN 39, CROSS ROAD 3A, KEERTHI NAGAR, ELAMAKKARA, ERNAKULAM, KOCHI-682026. 3 SUBRAMONIAN POTTY V., FLAT 6A, GREEN HEIGHT APARTMENTS, PAZHAYA ROAD, MEDICAL COLLEGE, THIRUVANANTHAPURAM-695011. 4 BOSE A.K., AMBADY, KAIRALI NAGAR 19, KANJIRAMPARA P.O., THIRUVANANTHAPURAM-695030. 5 V.S. JYOTHIKUMARAN NAIR, HAMSIKA, B3, PANDIT COLONY, KOWDIAR P.O., THIRUVANANTHAPURAM-695003. BY ADVS.DR.K.P.SATHEESAN (SR.) SRI.P.MOHANDAS (ERNAKULAM) SRI.S.VIBHEESHANAN SRI.K.SUDHINKUMAR SRI.S.K.ADHITHYAN SRI.MUHAMMED IBRAHIM ABDUL SAMAD SRI.SABU PULLAN RESPONDENTS: 1. UNION OF INDIA, REPRESENTED BY THE SECRETARY, MINISTRY OF CORPORATE AFFAIRS, A-WING, SASTHRI BHAVAN, RAJENDRA PRASAD ROAD, NEW DELHI-110001. WP(C).No. 18587 of 2018 2. THE CHAIRMAN, INSOLVENCY AND BANKRUPTCY BOARD OF INDIA, IBBI, 7TH FLOOR, MAYOOR BHAVAN, SANKAR MARKET, CONNAGHT CIRCUS, NEW DELHI-110001. 3. INDIAN BANK ASSOCIATION, 6TH FLOOR, CENTRE 1 BUILDING, WORLD TRADE CENTRE, CUFFE PARADE-COLABA, MUMBAI-400005. R1 BY SRI.N.NAGARESH, ASSISTANT SOLICITOR GENERAL SMT.SREEKALA K.L., CGC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06-06-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: EL WP(C).No. 18587 of 2018 (W) APPENDIX PETITIONER(S)' EXHIBITS EXHIBIT P1 TRUE COPY OF THE RELEVANT PAGES OF THE RULES PUBLISHED BY THE FIRST RESPONDENT AS PER NOTIFICATION DATED 18.10.2017. EXHIBIT P2 TRUE COPY OF THE MASS REPRESENTATION FILED BEFORE THE FIRST RESPONDENT DATED 26.02.2018. RESPONDENT(S)' EXHIBITS NIL TRUE COPY P.S. TO JUDGE EL 7.6.2018 SHAJI P . CHALY, J. ----------------------------------------------- W .P .(C) No.18587 of 2018 ----------------------------------------------- Dated this the 6th day of June, 2018 J U D G M E N T This writ petition is filed by the petitioner seeking the following reliefs: i) To issue a writ of mandamus or order or direction to the first respondent to make suitable amendments in Ext.P1 Rules to exempt the existing registered valuers registered under the Wealth Tax Act from complying with the conditions in Rule 4 and 5; ii) To issue a writ of mandamus or order or direction to the first respondent not to interfere in the profession of the existing registered valuers registered under the Wealth Tax Act for discharging their duties of valuation of movable and immovable assets notwithstanding Rule 4 and 5 specified in Ext.P1. iii) To issue a writ of mandamus or order or direction to the first respondent to consider and pass appropriate orders on Ext.P2 representation as expeditiously as possible and at any rate within a time limit that may be fixed by this Hon'ble Court. iv) To issue such other appropriate Writ, Order or W .P .(C) No.18587 of 2018 2 direction as is deemed just and necessary in the circumstances of the case. 2. Apparently petitioners are the registered valuers, who are registered under the provisions of Wealth Tax Act, 1957 and since the date of registration, they are practising as registered valuers for the purpose of Wealth Tax, Income Tax, SARFAESI Act, banks and financial institutions etc. etc. Now Government of India has framed rules called the Company (Registered Valuers and Valuation) Rules, 2017 invoking power under section 247 of the Companies Act. As per the rules, petitioners will have to undergo a study of 50 hours duration in order to secure the registration. Being aggrieved petitioners have submitted Ext.P2 before the 1st respondent, which is pending consideration and seeks direction for early disposal of the same. 3. Having heard learned counsel for petitioners and learned CGC appearing for 1st respondent, I am of the considered opinion that, the writ petition can be disposed of. W .P .(C) No.18587 of 2018 3 In view of the limited nature of order I propose to pass, notice to 2nd and 3rd respondents is dispensed with. There will be a direction to the 1st respondent to attain finality to Ext.P2 at the earliest possible time and at any rate within three months from the date of receipt of copy of this judgment. Writ petition is disposed of accordingly. Sd/- SHAJI P . CHALY JUDGE smv 6.6.2018 "