2023 (7) TMI 1222 - HC - GST

Suit seeking diverse declarations - direction to the Defendant to pay requisite GST, if applicable, and handover possession of permanent alternate accommodation as agreed - HELD THAT - The situation which obtains is that the occupation certificate of the redeveloped building has been obtained. The Plaintiff is kept out of possession of the permanent alternate accommodation to which she is otherwise legitimately entitled to. At the same time, it is alleged, the Defendant has not paid the transit rent. The controversy between the parties primarily revolves around the liability to pay GST which is yet not crystallized. In the circumstances, it would be expedient to dispose of the appeal by putting terms on the basis of the undertaking furnished by the Plaintiff as to payment of GST - Appellant-Plaintiff shall deposit the amount of GST before the trial Court, on demand being raised by the competent authority and conveyed by the Respondent-Defendant, within two weeks of such communication.

Summary

Issues involved: Dispute over payment of GST and other charges for a redevelopment project, refusal to hand over possession of permanent alternate accommodation, rejection of Notice of Motion seeking temporary injunction.

Summary:

Dispute over Payment of GST and Other Charges:
The Plaintiff, a tenant in a building taken up for redevelopment, faced a demand from the Defendant for payment of GST and other charges post Occupation Certificate issuance. The Plaintiff sought a temporary injunction to pay GST and obtain possession of the alternate accommodation. The lower court rejected the motion, deeming it as a temporary mandatory injunction. The High Court noted that the liability to pay GST was not finalized and directed the Plaintiff to deposit the GST amount upon demand by the competent authority. The Defendant was allowed to withdraw and deposit the amount with tax authorities, with the condition to return it if the Plaintiff succeeds in the suit.

Refusal to Hand Over Possession:
The Plaintiff alleged that the Defendant stopped transit rent payment and refused to hand over possession of the agreed alternate accommodation. The High Court ordered the Defendant to hand over possession within two weeks and expedite the suit's hearing for a decision by March 31, 2024.

Rejection of Notice of Motion:
The lower court rejected the Notice of Motion, citing it as a temporary mandatory injunction that could lead to decreeing the suit. The High Court disposed of the appeal by setting terms based on the Plaintiff's undertaking to pay GST, directing deposit of GST, possession handover, and expedited trial hearing.

This judgment resolves the issues surrounding the payment of GST and other charges, possession handover, and rejection of the Notice of Motion, providing directions for further proceedings in the case.