Wp/33739/2022 Of Canarabank v. The Income Tax Officer And 3 Others

IN THE HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Originat Jurisdiction) TUESDAY, THE FIRST DAY OF AUGUSTTWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHYANDTHE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETTYWRIT PETITION NO: 33739 OF 2022 Between: CANARA BANK, SME Kukatpally Branch,Hyderabad Presently account transferredto ARMB Hyderabad,Ground Floor, Circle Office Building,Beside Rail Nilyam,Secunderabad-500026, Represented by its AGNI, H B Chandrika. ...PETITIONER )AND 1.The lncome Tax Officer, Suryapet, Telangana - 508213. The Sub Registrar, SRO- Balanagar, Hyderabad 500039 3.The Sub Registrar, SRO- Kukatpally, Hyderabad-so1o72 4.M/s Sri Venkateshwara Rice lndustries Pvt Ltd, H.No.21-55/1 ,Madhavarayanigudem, Kodad Road, Huzur Nagar, Telangana - 508204Madhavarayanigudem, Kodad Road, Huzur Nagar, Telangana - 508204 ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High Court may bepleased to issue an appropriate Writ, Order or a Direction, more particularly onein the nature of Writ of Mandamus, directing the Respondent No. 1 to lift theorders of atlachment on the following properties expeditiously All that the vacantland admeasuring 2950 Sq yrds out of Ac.6-10 Guntas forming part and parcel ofSurvey No.,7, Situated at Hasmathpet Village, Balanagar Mandal, RangareddyDistrict, Hyderabad, Telangana, standing in the [pame ]of Sri Soma Kiran kumaras per Sale Deed No 14012014 situated within the [jurisdiction ]of Sub RegistrarOffice Kukatpally. All that the vacant land admeasuring 2950 Sq yrds out of Ac.6-10 Guntas forming [part ]and parcel of Survey No., 7, Situated at Hasmathpet Village, Balanagar [lr,4andal, ][Rangareddy District, Hyderabad, Telangana-50001 ][1,]standing in the name of Sri [Padamatinti Prasad ][as per ][sale ][Deed No ][14112014]situated within the [jurisdiction ]of [Sub Registrar ][Office ][Kukatpally.] lA NO: 1 OF 2022 Petition under Section [151 ] [praying ][that ][in ][the ][circumstances ][stated]in the affidavit filed [in ]support [of ][the ][petition, ][the ][High ][Court ][may ][be ][pleased ][to]direct the Respondent [No.2 ][and ][3 ][i.e.. ] [- ][Balanagar ][and ] [- ][Kukatpally]to register the [properties as given below ][. ][All ][that the vacant land ][admeasuring]2950 Sq [yrds ]out of Ac.6-10 [Guntas forming part and parcel ][of ][Survey No., ][7,]Situated at Hasmathpet [Village. ][Balanagar Mandal, ][Rangareddy ][District,]Hyderabad, Telangana, standing [in ][the ][name ][of ][Sri ][Soma Kiran kumar ][as ][per]sale Deed No 140/2014 [situated within the jurisdiction ][of sub ][Registrar ][office]Kukatpally. [. ]All that the [vacant land ][admeasuring, ][2950 Sq yrds out of ][Ac.6-10]Guntas forming [part ]and [parcel ][of ][Survey No., 7, Situated ][at ][Hasmathpet ][village,]Balanagar lvlandal, Rangareddy [District, ][Hyderabad, ][Telangana-500011,]standing in the name [of ]sri [Padamatinti Prasadas per ][Sale ][Deed No ][14112014]situated within the [jurisdiction of ][sub ][Registrar ][office ][Kukatpally, ][as ][an ][when the]auction is conducted by [the ][Bank.] Counsel for the Petitioner [:SRl ] Counsel for the Respondent [No.1 ][: ] [J.V.PRASAD ][(SC FOR INCOME TAX)]Counsel for the Respondent [No.3 ][: ] Counsel for the Respondents [:]The Court made the following: HONOURABLE SRI JUSTICE P. SAM KOSHYANDHON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION No.33739 of 2o22 ORDER: (per Hon'ble Sri Jrrsfice l.cuimi Narayana Alishettg) Counsel for the Petitioner [:SRl ] Counsel for the Respondent [No.1 ][: ] [J.V.PRASAD ][(SC FOR INCOME TAX)]Counsel for the Respondent [No.3 ][: ] Counsel for the Respondents [:]The Court made the following: HONOURABLE SRI JUSTICE P. SAM KOSHYANDHON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION No.33739 of 2o22 ORDER: (per Hon'ble Sri Jrrsfice l.cuimi Narayana Alishettg) This writ petil"ion is filed by the pe titioner-Bank to directrespondent No. I to Iilt the orders of attachment in respect ofvacarrl land, admeasuring 2950 square yards out of Acs.6. 1Oguntas lorming part and parcel of Sy.No.7 situated atHasmathper village, Balanagerr Mandal, Ranga Reddy district,l.lydcrabad. standing in thc' name of Sri Soma Kiran Kumar aspcr Sale l)eed no- 1,lOl2OI4 and lhe vacant [and, adrneasuring'2950 squarc- \,ards out of Acs.6.10 guntas forming part andparcel oi Sy.No.7 ol ttre samc village, standing irr the name of SriPadamatinti Prasad as per Sale deed no.l47l2Ol4 situatedr.r,irhin the [jurisdiction ]of Sub-Registrar Office, Kukatpally. 2. Brief facts narrated in rhe writ petition are that petitioneris a Bank and it had extendcd credit facilities to a tune ol'I?s.7O,00,O0,000 / - ro the respondent no.4 i.e.. M/s.SriVenkateshwara Ricc Indrislric-s Private Limitecl on 21.i2.2013.The loan is secu reC b.1. r'ay oi ,-:harge of three properties situatcciat Hasmathpet villagr:, Balanagar Mandal, Ranga Reddy district,{n ---- ---- Hvderabad. Horvevcr, lhc rcspondent No.4 defaulted [in]repayment of the loan amount and the loan account wasclassified as Non-Performing Asset [(NPA) ]on 29.06.2O18. Thepetitioner-Bank has initiated measures under the Securitizationand Reconstruction of Financial Assets and [Enforcement ][of]Security Interest Act,2OO2 (for short, Act, 2002') and issuedDemand Notice dated12.07 .2018 under Section 34(2) of theAct,2OO2 for enforcement of security interest 3. The petitioner bank had taken symbolic possession of theproperties and paper publication of the possession notice wasalso issued on 25.10.2018 in Sakshi and Indian [Express]Newspapers. After scrwing the redemption notice .on [the]borrowcrs / guaran tors on 10.12.2O18, auctions [were conducted]for sale of secured assets on 27.O2.2O19, [13.O3.2O2O,]30 .o7 .2020 , 1.9 .1.2.2020, 30.0 I .202 [1 ], 30 .7 r .2021 and22.O3.2022, however, the same were failed for [want ]of [bidders.] 4. The petitioner-bank {rled Original Application [vide]O.A.No. 174 /2019 before the Debts Recovery Tribunal [(DRT) for]recovery of an amount of Rs.8O13.85 lakhs and the [same ][was]decreed on 31.O8.2019 for Rs.6950.49 lakhs and [Recovery]Certificate u,as issuecl. Thereafter, respondcnt no.4 challengedthe proceedings initiatecl by thc petitioner-Bank [vide ][S.A.No.512] of 20 18 before the Debts Recovery Tribunal and the same ispending for consideration. 5. Meanwhile, the petitioner-bank came to know that theproperties 'A' and 'B' are included in prohibited list of propertiesin the website o[ Registration and Stamps Department in view ofIncome Tax provisional attachment under Section 281-B of theIncome Tax Act, 1961, passed by the 1"t respondent. 6. During the hearing, learned counsel for the petitionersubmitted that attachment of properties by lhe Income TaxDepartment is causing hindrance and the Bank is not able tosucceed in the auction for sale of mortgaged properties, as theproperties are shown under thc prohibited list of properties. Hefurther submitted that multiple attempts made by thepetitioner-bank to auction the properties have failed for want ofbidciers. The learned counsel finally submits that it is necessaryto lift the attachment of the Income Tax Department to enablethe petitioner-bank to enforce its security interest and that thesale certificate can be registered in favour of the successfulbidders. 6. During the hearing, learned counsel for the petitionersubmitted that attachment of properties by lhe Income TaxDepartment is causing hindrance and the Bank is not able tosucceed in the auction for sale of mortgaged properties, as theproperties are shown under thc prohibited list of properties. Hefurther submitted that multiple attempts made by thepetitioner-bank to auction the properties have failed for want ofbidciers. The learned counsel finally submits that it is necessaryto lift the attachment of the Income Tax Department to enablethe petitioner-bank to enforce its security interest and that thesale certificate can be registered in favour of the successfulbidders. 7. Respondent No.1 filed counter affidavit stating thatproperty 'B' was provisionally attached by respondent No. 1 bypassrng an order under Section 28lB of the Income Tax Act, 1961 vicle rcference No.PAN: AJlPP5692G, dated 03.12.2O1sand the said provisionzrl attachmcnt order ceased to havc effcctfrom O2.06.20 16 and therefore, there is no attachment by theDepartmcnt. In paragraph 7 of the counter-affidavit, it iscategorically stated that no provisional attachment underSection 28 1B(1) of the lncome Tax Act, 1961 is in force inrespect of property 'B' since 18.04.20L7 and that no order lorattachm ent of propertl, 'A' has been passed . 8. Kr:eping in vicw of the factual background, the avermentsmade in the coun ter-a ffidav it iiled by the respondent no.1 andsubmissions made by the respective counsels, the Writ Petitionis disposed of with the follorving directions: (i) Petitioner-bank is directed to approach the respondent no.2i.e., Sub-Registrar, SRO, Balanagar, Hyderabad, for redressal ofits grievance by way of rcpresentation / application within aperiod o1- l5 days from the date of receipt of copy of this order.i.e., Sub-Registrar, SRO, Balanagar, Hyderabad, for redressal ofits grievance by way of rcpresentation / application within aperiod o1- l5 days from the date of receipt of copy of this order. (ii) On submission of such representation/ application by thepetitioner-bank, the respondent no.2 shall consider and takeappropriate decision thereon, in accordance with 1aw within, aperiod o{ 30 days thereafter by duly considering the avermentsmade in the counter-aliidavit filed by the respondent no.1 thatpetitioner-bank, the respondent no.2 shall consider and takeappropriate decision thereon, in accordance with 1aw within, aperiod o{ 30 days thereafter by duly considering the avermentsmade in the counter-aliidavit filed by the respondent no.1 thatno provisional attachmcnl under Section 2818 (1) ol the Income Tax Act, 1961 is in force in respcct ol the property ,B,i.e., thevacant land admeasuring 2950 square yards out of Acs.6. 10guntas forming part and parcel of Sy.No.7, situated atHasmathpet village, Balanagar Mandal, Ranga Reddy district,guntas forming part and parcel of Sy.No.7, situated atHasmathpet village, Balanagar Mandal, Ranga Reddy district,Hyderabad,, standing in the name of Sri padamatinti prasadcovered by the Sale deed no. 141/2014; and no order has beenpassed for attachment of property ,A, i.e., the vacant landadmeasuring 2950 square yards out of Acs.6. 1O guntas formingpart and parcel of Sy. No.7 of the same village, standing in thename o[ Sri Soma Kiran Kumar covered by Sale deedno.l4o/2074. There shall be no order as to costs.admeasuring 2950 square yards out of Acs.6. 1O guntas formingpart and parcel of Sy. No.7 of the same village, standing in thename o[ Sri Soma Kiran Kumar covered by Sale deedno.l4o/2074. There shall be no order as to costs. 9Miscellaneous applicarions, pending it any, shall standclosedclosed SD/- K. VENKAIAHR GISTRARk)23 ASSISTANT R GISTRARSECTIOFFI //TRUE COPYII 9Miscellaneous applicarions, pending it any, shall standclosedclosed SD/- K. VENKAIAHR GISTRARk)23 ASSISTANT R GISTRARSECTIOFFI //TRUE COPYII OFFITo,21Jfe !c91e [Tax Officer, Suryapet, Telangana ][_ ]508213.lle lup [Registrar, SRO- Batanagar, ][Hyd-erabad ]50003921Jfe !c91e [Tax Officer, Suryapet, Telangana ][_ ]508213.lle lup [Registrar, SRO- Batanagar, ][Hyd-erabad ]500039Jr ne sub.Registrar, SRO- Kukatpally, Hyderabad_5000724Mis sn venkateshwara Rice lndustries, pvt Ltd, H.No.21_55/1,Eone Madhavarayanigudem, Kodad CC to SRI DtSHtT BHATTACHARIEE Ro^ad, 1q1qrnrgii, AiiroiateioFudl fLlangana - [----- ]soB2O4.["]69n.99 [to ][sRt ][J.v.PRASAD, ][(sc ][FqR ]tNcorviEiAx). 7Two ccs to the Gp for stampd and negistratiJns, Ai!r, corrt toFtjcifo'r the state ofTelangana at Hyderabad. IOiJT] [v -"- ][-! ] [..,']4Mis sn venkateshwara Rice lndustries, pvt Ltd, H.No.21_55/1,Eone Madhavarayanigudem, Kodad CC to SRI DtSHtT BHATTACHARIEE Ro^ad, 1q1qrnrgii, AiiroiateioFudl fLlangana - [----- ]soB2O4.["]69n.99 [to ][sRt ][J.v.PRASAD, ][(sc ][FqR ]tNcorviEiAx). 7Two ccs to the Gp for stampd and negistratiJns, Ai!r, corrt toFtjcifo'r the state ofTelangana at Hyderabad. IOiJT] [v -"- ][-! ] [..,'] 8.Two CD Copies.BSKGJPfnq.BSKGJPfnq. I HIGH COURT DATED:01 10812023 ORDER WP.No.33739 of 2022 DISPOSING OF THE WRIT PETITIONWITHOUT COSTS 8a^UlrstC*' ,;f STArg1 o.i:cf,U2 [s ][[uczm]\-r '.y.1' i.lrii_