THE SOUTH INDIAN BANK LTD. vs. THE ASSISTANT COMMISSIONER OF INCOME TAX,

WP(C)/3235/2022HC KeralaKLHC01007234202201 April 2022Author: HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN6 pages

AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition. It directed the 4th respondent, the Sub Registrar, to register any Sale Deed presented by the petitioner bank or the buyer for Item No. 9 in Ext.P1. This registration was to be done after erasing all attachments over the property, enabling the purchaser to deal with it legally. The Court specified that this registration should occur within one week of the document's presentation. Furthermore, the Court granted liberty to the property's purchaser to approach the Tahsildar and Village Officer for the transfer of registry and payment of land tax, which these authorities were directed to process without avoidable delay. The core reasoning was based on the submissions made by both the Government Pleader and the Income Tax Department's counsel, indicating no impediment to the registration of this specific property.

What were the facts?

The South Indian Bank Ltd. (the petitioner) filed a writ petition seeking a direction to the Sub Registrar (4th respondent) to register a Sale Deed for a property (Item No. 9 in Ext.P1). The petitioner requested that all orders of attachment over this property, obtained by the Income Tax respondents, be effaced prior to registration. The Government Pleader affirmed that there were no attachments for public revenue or tax arrears on this specific property. The Income Tax Department's Standing Counsel conceded that while liabilities existed against the original owner, they did not carry a better charge than the Bank's claim. The Court considered these submissions.

What were the issues?

1. Whether the Sub Registrar should be directed to register a Sale Deed for Item No. 9 in Ext.P1 after effacing all orders of attachment obtained by the Income Tax respondents, considering the Bank's claim and the absence of specific tax arrears on that property. Assessee's Contention (Petitioner Bank): The petitioner bank sought registration of the Sale Deed and removal of attachments, implying their right over the property should take precedence or that the attachments were not validly placed on the property they intended to sell. Revenue's Contention (Respondents 1-3): The Income Tax Department conceded that any liabilities against the original owner would not have a charge superior to that claimed by the petitioner bank, indicating a potential acceptance of the bank's priority or a lack of strong opposition to the registration on this specific property.

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 DEVAN RAMACHANDRAN FRIDAY, THE 1ST DAY OF APRIL 2022 / 11TH CHAITHRA, 1944 WP(C) NO. 3235 OF 2022 PETITIONERS: 1 THE SOUTH INDIAN BANK LTD. HAVING ITS REGISTERED OFFICE AND HEAD OFFICE, MISSION QUARTERS, T.B. ROAD, THRISSUR 680 001 REPRESENTED BY ITS ASST GENERAL MANAGER. 2 THE AUTHORIZED OFFCIER AND CHIEF MANAGER THE SOUTH INDIAN BANK LIMITED, REGIONAL OFFICE, PLATINUM JUBILEE BUILDING, FIRST FLOOR, AYYANTHOLE, THRISSUR 680 003. 3 THE ASST. GENERAL MANAGER, CREDIT RECOVERY DEPARTMENT, THE SOUTH INDIAN BANK LTD, MAIN BRANCH, ROUND SOUTH, THRISSUR 680 001. BY ADVS. K.K.CHANDRAN PILLAI (SR.) S.AMBILY MICKY THOMAS RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, AYAKAR BHAVAN, SAKTHAN THAMPURAM, NAGAR, MUNICIPAL OFFICE ROAD, THRISSUR 680 001. 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, (CENTRAL), 5TH FLOOR, KANDANKULATHY BUILDING, OPP. MAHARAJA'S COLLEGE, M.G. ROAD, KOCHI 682 011. 3 THE RECOVERY OFFICER CORPORATE, INCOME TAX DEPARTMENT, CR BUILDING, IS PRESS ROAD, KOCHI 682 018. 4 THE SUB REGISTRAR, SUB REGISTRY OFFICE, PUTHENCRUZ, ERNAKULAM DISTRICT 682 308. 5 THE VILLAGE OFFICER, VILLAGE OFFICE, PUTHENCRUZ, WP(C) NO. 3235 OF 2022 2 ERNAKULAM DISTRICT - 682 308. 6 STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY, GOVT. SECRETARIAT, THIRUVANANTHAPURAM 695 001. BY ADVS. P.K.RAVINDRANATHA MENON (SR.) JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA SMT.RESMITHA RAMACHANDRAN, GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.04.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 3235 OF 2022 3

JUDGMENT The South Indian Bank Ltd., which is a Banking Company incorporated under the provisions of the Companies Act, 1956, has approached this Court seeking a direction to the 4th respondent – Sub Registrar, to register the Sale Deed with respect to the property which is described as Item No.9 in Ext.P1, after effacing all orders of attachment over it obtained by the respondents.

The afore request of the petitioners, as made by Shri.K.K.Chandran Pillai, learned Senior Counsel, instructed by Smt.Ambili S., learned Standing Counsel for the petitioners, was answered by Smt.Resmitha Ramachandran - learned Government Pleader, affirming that there are no attachments towards Public Revenue or arrears of Tax on Item No.9 in Ext.P1 and thus prayed that any relief in this writ petition be confined to that property alone.

Shri.Jose Joseph - learned Standing Counsel

WP(C) NO. 3235 OF 2022 4 for respondents 1 to 3, conceded that, though there are some liabilities against the original owner of the property, it will not carry a better charge than that what is claimed by the petitioner – Bank. Taking note of the afore submissions, I order this writ petition and direct the 4th respondent – Sub Registrar, to register any Sale Deed with respect to Item No.9 in Ext.P1, as and when it is presented by the petitioner - Bank or the buyer; in which event it shall be acceded to, after erasure of all the attachments over it, so as to enable the purchaser to deal with it in terms of law. The afore shall be done within a period of one week from the date on which the document is presented for such purpose before the said Authority. Needless to say, on the document being so registered, I leave liberty to the purchaser of the property to approach the Tahsildar and the Village Officer for transfer of Registry of the property covered by it, as also for payment of land tax over

WP(C) NO. 3235 OF 2022 5 it, which shall be acceded to by the said Authority without any avoidable delay thereafter. DEVAN RAMACHANDRAN JUDGE MC/1.4

WP(C) NO. 3235 OF 2022 6

Appendix — schedule of exhibits

APPENDIX OF WP(C) 3235/2022 PETITIONER EXHIBITS Exhibit P1 COPY OF DEMAND NOTICE DATED 08.01.2016 ISSUED BY THE PETITIONERS TO THE BORROWER AND GUARANTORS. Exhibit P2 COPY OF POSSESSION NOTICE DATED 02.04.2016 ISSUED BY THE PETITIONERS TO THE GUARANTORS. Exhibit P3 COPY OF ENCUMBRANCE CERTIFICATE DATED 01.02.2021 OF THE SUB REGISTRY OFFICE, PUTHENCRUZ. Exhibit P4 COPY OF REPRESENTATION DATED 19.04.21 SUBMITTED BY THE PETITIONERS TO THE 2ND RESPONDENT. Exhibit P5 COPY OF REPRESENTATION DATED 30.7.21 SUBMITTED BY THE PETITIONERS TO THE 2ND RESPONDENT. Exhibit P6 COPY OF NOTICE DATED 07.10.2021 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONERS. Exhibit P7 COPY OF LETTER DATED 08.09.2013 ISSUED BY THE GUARANTOR CONFIRMING DEPOSIT OF TITLE DEEDS.

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