Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2019 (2) TMI HC This

  • Login
  • Cases Cited
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2019 (2) TMI 1287 - HC - Indian Laws


Issues Involved:
1. Challenge to CBDT's Instructions dated 19.07.1993.
2. Petitioner's request to negotiate and acquire property or for its immediate auction.
3. Claim for compensation for non-disposal of property.
4. Legal status and rights of the petitioner as a legal heir.
5. Allegations of abuse of the process of law and re-litigation.

Issue-wise Detailed Analysis:

1. Challenge to CBDT's Instructions dated 19.07.1993:
The petitioner impugned the CBDT's instructions dated 19.07.1993, which prohibited the Income Tax Department from entering into direct negotiations with individuals for the disposal of property acquired by it. This issue had been previously adjudicated by the Division Bench of the High Court in W.P.(C) 4120/2014, which upheld the instructions, stating that they reflected a policy decision of the Central Government that could not be judicially reviewed except on very narrow grounds of unreasonableness or arbitrariness. The Supreme Court also upheld this decision in its order dated 03.08.2015, thus concluding that the challenge to the CBDT's instructions was no longer res integra.

2. Petitioner's Request to Negotiate and Acquire Property or for its Immediate Auction:
The petitioner sought directions to permit negotiation and acquisition of the property or, alternatively, for its immediate auction. The court noted that the petitioner’s mother had previously attempted to challenge the same instructions and had been unsuccessful. The Supreme Court had clarified that the petitioner could participate in the auction if the property were to be auctioned but did not confer any additional rights to insist on the auction. The court found that there was no merit in the petitioner's request as the issue had already been decided.

3. Claim for Compensation for Non-disposal of Property:
The petitioner claimed compensation at the rate of ?1.5 lacs per month from 01.01.2016 until the final disposal of the property by public auction. The court did not find any legal basis for this claim, as the petitioner was not entitled to any rights or compensation merely based on the observations made by the Supreme Court regarding participation in an auction.

4. Legal Status and Rights of the Petitioner as a Legal Heir:
The petitioner assumed that as a legal heir of Smt. Shiela Sen Gupta, they had acquired certain rights based on the Supreme Court's observations. The court clarified that the Supreme Court's observation only allowed participation in an auction if held and did not confer any substantive rights to insist on the auction or acquire the property directly. Thus, the petitioner's assumption was deemed incorrect.

5. Allegations of Abuse of the Process of Law and Re-litigation:
The court observed that the petitioner was re-litigating issues that had already been decided against them in previous rounds of litigation. Citing the Supreme Court’s stance in K.K. Modi v. K.N. Modi and M. Nagabhushana v. State of Karnataka, the court emphasized that re-litigation constitutes an abuse of the process of court and is contrary to justice and public policy. The court concluded that the present petition was speculative and an abuse of the legal process, warranting dismissal with costs.

Conclusion:
The court dismissed the petition, holding that it was an abuse of the process of law and speculative in nature. The petitioner was ordered to pay costs of ?50,000 to the Delhi High Court Legal Services Committee within two weeks. The application filed by the petitioner was also disposed of.

 

 

 

 

Quick Updates:Latest Updates