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2022 (10) TMI 1229 - MADRAS HIGH COURTRecovery proceedings - attachment made of 50% of the share of R3 in the property in question - claim of ownership of the property - void sale agreement - claim of the petitioner that the property in question has been sold to him is in direct contravention to the statutory provisions as well as the Rules, seeing as there was an attachment of the property that was validly made, subsisting at the time of the avowed transfer of the property - HELD THAT:- This Court is unaware as to whether there was any encumbrance registered upon the property. In any event, the fact that the property was under attachment is not in dispute. A copy of the ITCP has been placed on record by the revenue counsel. R3 has filed a counter where she brings to light disputes between the petitioner and R3 in regard to the transfer of the property itself. Thus, the petitioner and R3 would proceed on the basis of their rival claims to the property. In such circumstances, the appropriate remedy is under Rule 11 of the second schedule which sets out the procedure for recovery of tax - Hence, it is for the TRO to look into the claim of ownership of the property and, in fact, the impugned communication, a mere notice, is precisely to such effect. Learned counsel for the petitioner would express apprehension that the TRO has pre-determined the issue, since at paragraph 2 he proceeds on the basis that the transfer had taken place for inadequate consideration, and when there were tax arrears. The apprehension expressed by petitioner may be allayed by directing R2 to approach the matter with an open mind, hear the petitioner and R3 by issuance of prior notice, take their submissions into account and passing an order thereafter, in accordance with law and bearing in mind all relevant rules in this regard. WP dismissed.
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