M/S SURABHI WOODS, vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX -CENTRAL.,

WP(C)/5168/2022HC KeralaKLHC01011222202231 May 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.5 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court of Kerala at Ernakulam, presided over by Justice Gopinath P., considered the submission made by the learned Standing Counsel appearing for respondents 5 and 6 (South Indian Bank). The counsel stated that the entire loan account had been settled and that respondents 5 and 6 were withdrawing the proceedings initiated under the SARFAESI Act. In light of this submission, the Court held that the Writ Petition (Civil) would stand closed. The reasoning is based on the voluntary withdrawal of the SARFAESI proceedings by the concerned parties due to the settlement of the loan account, rendering the petition's purpose moot. No specific issue was decided on merits; the closure is procedural. The operative direction is to close the writ petition.

What were the facts?

This case involves a writ petition filed by M/s Surabhi Woods, represented by its Managing Partner, Shibu Augustine, against the Principal Commissioner of Income Tax - Central, the Tax Recovery Officer - Central, the Deputy Commissioner of Income Tax, and others. The petition was filed before the High Court of Kerala at Ernakulam. The specific assessment years and the exact nature of the income tax proceedings are not detailed in the provided judgment excerpt. The core of the matter, as revealed in the proceedings, pertains to actions initiated under the SARFAESI Act concerning a loan account.

What were the issues?

1. Whether the proceedings initiated under the SARFAESI Act are maintainable in light of the settlement of the loan account? (Question of law) The petitioner, M/s Surabhi Woods, likely sought to challenge or halt proceedings initiated under the SARFAESI Act. The respondents, including the Income Tax Department and the South Indian Bank, were involved in these proceedings. The key development, as presented to the Court, was the submission by the learned Standing Counsel for respondents 5 and 6 (South Indian Bank) that the entire loan account had been settled. Consequently, the bank was withdrawing the proceedings initiated under the SARFAESI Act. No specific arguments from the petitioner or the Income Tax Department regarding the SARFAESI proceedings themselves are recorded, beyond the bank's submission.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 31ST DAY OF MAY 2022 / 10TH JYAISHTA, 1944 WP(C) NO. 5168 OF 2022 PETITIONER: M/S SURABHI WOODS, DOOR NO. 19/557, 19/558 AND 19/559 , NEAR RAILWAY STATION, ANGAMALY P.O, ERNAKULAM, PIN 683 572, REPRESENTED BY ITS MANAGING PARTNER, SHIBU AUGUSTINE. BY ADV L.RAJESH NARAYAN RESPONDENT: 1 THE PRINCIPAL COMMISSIONER OF INCOME TAX -CENTRAL., 6TH FLOOR, KANDAMKULATHY TOWERS, M.G. ROAD, COCHIN - 682 011. 2 THE TAX RECOVERY OFFICER- CENTRAL, 5TH FLOOR, KANDAMKULATHY TOWERS, M.G. ROAD, COCHIN - 682 011. 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 682 011. 4 V.P. RASHEED, AGED 63 YEARS S/O. PAREED KHAN, PROPRIETOR, M/S. E-ORIENTAL TIMBERS, N.H. BYEPASS, OPP. CHAITHANYA MARBLES, EDAPPALLY, KOCHI 682 024. 5 THE AUTHORISED OFFICER, SOUTH INDIAN BANK, REGIONAL OFFICE VI/950-C&D, AKP CENTRE, CHRIST COLLEGE ROAD, CHRIST NAGAR, IRINJALAKUDA-680 125 W.P.(C) No.5168 of 2022 2 6 CHIEF MANAGER, SOUTH INDIAN BANK, REGIONAL OFFICE, VI/950-C&D, AKP CENTRE, CHRIST COLLEGE ROAD, CHRIST NAGAR, IRINJALAKUDA-680 125 BY ADVS. P.K.RAVINDRANATHA MENON (SR.) M.S.UNNIKRISHNAN SUNIL SHANKER KEVIN VARGHESE JACOB JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA K.SUNIL ALEENA MARIA JOSE M.ARDRA KRISHNAN KRISHNENDU.D THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.05.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.5168 of 2022 3

J U D G M E N T When this matter is taken up for consideration today, the learned Standing Counsel appearing for the respondents 5 and 6 would submit that the entire loan account has been settled and respondents 5 and 6 are withdrawing the proceedings initiated under the SARFAESI Act. In the light of the above submission this Writ Petition will stand closed. GOPINATH P.

JUDGE ats APPENDIX OF WP(C) 5168/2022 PETITIONER EXHIBITS Exhibit P1OF THE ORDER DATED 17.6.2017 IN I.A. NO. 1880/2017 IN O.S. NO. 98/2017 OF THE HON'BLE SUB COURT, ERNAKULAM. Exhibit P2OF THE LIST OF PROPERTIES ATTACHED DTD. 10.04.2017. Exhibit P3OF THE AWARD DATED 4.12.2019. Exhibit P4OF THE EXECUTION PETITION DATED 5.6.2020. Exhibit P5OF THE ENCUMBRANCE CERTIFICATE DATED 24.9.2020. Exhibit P6OF THE NOTICE DATED 10.09.2021. Exhibit P7OF THE GUARANTEE INVOCATION LETTER DATED 30.09.2021 Exhibit P8OF THE REGISTERED NOTICE DATED 30.09.2021. Exhibit P9OF THE ORDER DATED 26.09.2016. Exhibit P10OF THE REQUEST DATED 8.10.2020. Exhibit P11OF THE LETTER OF INTEREST DATED 19.10.2021. Exhibit P12OF THE NOTICE ISSUED UNDER S. 13(2) DATED 3.11.2021. Exhibit P13OF THE REPLY TO EXT. P12 SUBMITTED BY THE PETITIONER. Exhibit P14OF THE JUDGMENT DATED 23.11.2021 IN WPC NO. 23021/2021. Exhibit P15OF THE ORDER DATED 10.01.2022 OF THE 1ST RESPONDENT. Exhibit P16OF THE POSSESSION NOTICE DATED 8.2.2022.

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