1992 (2) TMI 64 - HC - Income Tax

Summary

Issues:
1. Maintainability of the writ petition challenging the orders passed by the respondents.
2. Validity of the rejection of the application made under rule 60.
3. Competency of the petitioner to enter into an agreement of sale after attachment proceedings.

Analysis:
The judgment pertains to a case where the petitioners challenged the rejection of their application under rule 60 and the subsequent sale of property. The petitioners contended that the first petitioner had deposited the tax arrears and sought to set aside the sale, which was rejected by respondent No. 2. The respondents argued that the agreement of sale entered into after attachment proceedings was void, and the petitioners had no legal standing to challenge the sale. The learned single judge found the writ petition maintainable, considering the acceptance of the tax arrears deposit by respondent No. 2. The judge directed the respondent to allow the deposit and deal with the matter on its merits.

Upon appeal, the court analyzed the events leading to the attachment and sale of the property. The court noted that the defaulter was not competent to enter into an agreement of sale after the attachment proceedings began. The court emphasized that a mere agreement of sale did not confer any legal rights over the property. It was observed that the application under rule 60 was not maintainable as the petitioner's interest was not affected by the sale. The court further highlighted that petitioner No. 2 did not file an appeal or application and thus could not maintain the writ petition.

The court addressed the maintainability of the writ petition, emphasizing that petitioner No. 1 lacked the necessary interest to challenge the sale. The court concluded that the writ petition was not maintainable, leading to the dismissal of the appeal and upholding the orders passed by the respondents. The court agreed with the single judge's observation regarding the interference in the discretionary power of respondent No. 2. Consequently, the writ appeals were allowed, the order under appeal was set aside, and the writ petition was dismissed. No costs were awarded in the judgment.