SURABHI WOODS V. THE PRINCIPAL COMMISSIONER OF INCOME TAX-CENTRAL,

WP(C)/23021/2021

AI Insights

The case involves Surabhi Woods, a decree holder in a civil suit, who is seeking the release of properties attached by the Income Tax Department. The petitioner, represented by its managing partner Shibu Augustine, argued that the properties of the judgment debtor, the 4th respondent, are significantly more valuable than the tax liability claimed by the Income Tax Department, which was around Rs.68 Crores. The petitioner contended that releasing even a part of these properties would allow them to proceed with execution and avoid irreparable hardships from potential securitisation proceedings by banks. The court's decision focused on ensuring that the Income Tax Department re-evaluates the attachment of the properties in light of the petitioner's claims.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 686886 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 23-11-2021
• Assessment Year: misc
• Laws Referred To: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; SUNIL K
• Assessee Lawyers: L NARAYAN
• Keywords: Execution Proceedings; Income Tax Department; Property Attachment; Securitisation

Judgement Text

"WP(C) NO. 23021 OF 2021 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 23RD DAY OF NOVEMBER 2021 / 2ND AGRAHAYANA, 1943 WP(C) NO. 23021 OF 2021 PETITIONER/S: SURABHI WOODS DOOR NO.19/557, 18/558 & 19/559, NEAR RAILWAY STATION, ANGAMALY.P.O, ERNAKULAM, REPRESENTED BY ITS MANAGING PARTNER, SHIBU AUGUSTINE. BY ADV L.RAJESH NARAYAN RESPONDENT/S: 1 THE PRINCIPAL COMMISSIONER OF INCOME TAX-CENTRAL, 6TH FLOOR, KANDAMKULATHY TOWERS, M.G.ROAD, COCHIN-682011. 2 THE TAX RECOVERY OFFICER-CENTRAL , 5TH FLOOR, KANDAMKULATHY TOWERS, M.G.ROAD, COCHIN-682011. 3 THE DEPUTY COMMISSIONER OF INCOME TAX, OFFICE OF THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, ERNAKULAM, ALFA LIZA BUILDING, NEAR AMBADY CHAMBERS, OPPOSITE SRV L.P.SCHOOL, CHITTOOR ROAD, KOCHI-682011. 4 V.P.RASHEED, AGED 63 YEARS S/O PAREED KHAN, PROPRIETOR M/S E-ORIENTAL TIMBERS N.H.BYE PASS, OPP.CHAITHANYA MARBLES, EDAPPALLY, KOCHI-682024. 5 THE TAHSILDAR, KANAYANNUR TALUK OFFICE, KANAYANNUR, PARK AVENUE, NEAR SUBHASH PARK, MARINE DRIVE, KOCHI-682011. 6 THE VILLAGE OFFICER, POONITHURA VILLAGE OFFICE, FIRST FLOOR, ROSY BAZAAR, SAHODARAN AYYAPPAN ROAD, VYTTILA, ERNAKULAM -682019. SRI.JOSE JOSEPH SC R1 TO R4 WP(C) NO. 23021 OF 2021 2 SRI SUNIL K (R4) GOVERNMENT PLEADER SMT.THUSHARA JAMES, R5 TO R6 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.11.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 23021 OF 2021 3 BECHU KURIAN THOMAS, J. =============================== W.P.(C)No.23021 of 2021 ----------------------------------------------------- Dated this the 23rd day of November, 2021 JUDGMENT Petitioner is a decree holder in OS No.98/2017 before the Sub Court, Ernakulam. The suit was decreed for an amount of Rs.5,59,75,171/-. The judgment debtor is the 4th respondent. While the petitioner initiated proceedings for execution against the 4th respondent, it was realised that all properties of the 4th respondent are under attachment with the Income Tax Department. According to the petitioner, though the liability due to the Income Tax Department was allegedly around Rs.68 Crores, on a cursory valuation of the properties attached, petitioner assumes the same to be having a value of more than Rs.150 Crores. 2. Petitioner contends that if any item of property is released from the attachment it can enable the petitioner to proceed in execution. No prejudice would be caused to the Income Tax Department while petitioner could be saved from the threat of proceedings under the Securitisation and Reconstruction of Financial WP(C) NO. 23021 OF 2021 4 Assets and Enforcement of Security Interest Act, 2002 being initiated by the Banks. 3. Seeking the release of property or properties from attachment, petitioner had been knocking at the doors of the 1st respondent by filing Ext.P14. However, no response could be elicited from the 1st respondent till date and the petitioner apprehends irreparable hardships to him due to the threat of securitisation proceedings. 4. I have heard Adv.Rajesh Narayanan, learned Counsel appearing for the petitioner, Sri.Jose Joseph, learned Standing Counsel appearing for respondents 1 to 3, Adv.Sunil.K. learned Counsel appearing for the 4th respondent and the learned Government Pleader appearing for respondents 5 and 6. 5. After bestowing my anxious consideration, I am of the view that interest of justice demands that the 1st respondent consider and pass appropriate orders on Ext.P14 petition filed by the petitioner, seeking release any one or more of the properties sufficient to satisfy his claim. Accordingly, there will be a direction to the 1st respondent to consider and pass appropriate orders on Ext.P14, after affording an WP(C) NO. 23021 OF 2021 5 opportunity of hearing to the petitioner, as expeditiously as possible, at any rate, within a period of two months from the date of receipt of a copy of this judgment. The writ petition is disposed of accordingly. Sd/- BECHU KURIAN THOMAS JUDGE jm/ WP(C) NO. 23021 OF 2021 6 APPENDIX OF WP(C) 23021/2021 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ORDER DATED 17.06.2017 IN I.A.NO.1880/2017 IN O.S.NO.98/2017 OF THE HON'BLE SUB COURT, ERNAKULAM Exhibit P2 TRUE COPY OF THE LIST OF PROPERTIES ATTACHED Exhibit P3 TRUE COPY OF THE AWARD DATED 4.12.2019 Exhibit P4 TRUE COPY OF THE EXECUTION PETITION DATED 5.6.2020 Exhibit P5 TRUE COPY OF THE AFFIDAVIT VERIFYING PROCLAMATION DATED 11.9.2020 Exhibit P6 TRUE COPY OF THE SALE PROCLAMATION DATED 11.9.2020 Exhibit P7 TRUE COPY OF THE ENCUMBRANCE CERTIFICATE DATED 23.9.2020 Exhibit P8 TRUE COPY OF THE NOTICE DATED 10.9.2021 Exhibit P9 TRUE COPY OF THE GUARANTEE INVOCATION LETTER DATED 30.9.2021 Exhibit P10 TRUE COPY OF THE REGISTERED OFFICE DATED 30.9.2021 Exhibit P11 TRUE COPY OF THE PROCEEDINGS DATED 23.3.2015 Exhibit P12 TRUE COPY OF THE PROCEEDINGS DATED 23.9.2015 Exhibit P13 TRUE COPY OF THE ORDER DATED 26.9.2016 Exhibit P14 TRUE COPY OF THE REQUEST DATED 8.10.2020 Exhibit P15 TRUE COPY OF THE LETTER OF INTEREST DATED 19.10.2021. "