CONNECTWELL INDUSTRIES PVT. LTD. Vs. UNION OF INDIA
SUPREME COURT OF INDIA
Connectwell Industries Pvt. Ltd.
UNION OF INDIA
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L.NAGESWARA RAO,J. -
(1.)The Appellant filed the Writ Petition in the High Court of Judicature at Bombay seeking a restraint order
against the Tax Recovery Officer, Range 1, Kalyan -
Respondent No.4 for enforcing the attachment made
under the Income Tax Act, 1961 (hereinafter referred to
as 'the Act') for recovery of the dues. The Writ Petition
was dismissed by the High court, aggrieved by which
the Appeal has been filed.
(2.)Biowin Pharma India Ltd. (hereinafter referred to as 'BPIL')- Respondent No.5 herein obtained a loan from
the Union Bank of India. Property situated in Plot No.D-
11 admeasuring 1000 sq. mtrs. situated at Phase-III, Dombivli Industrial Area, MIDC, Kalyan along with plant
machinery and building was mortgaged as security to
Union Bank of India-Respondent No.5 herein.
Respondent No.-5 filed OA No.1836 of 2000 before the
Debt Recovery Tribunal III, Mumbai (hereinafter referred
as 'the DRT') for recovery of the loan advanced to BPIL.
The DRT allowed the OA filed by Respondent No.5 and
directed BPIL to pay a sum of Rs.4,76,14,943.20/- along
with interest at the rate of 17.34% per annum from the
date of the application till the date of payment and/or
realisation. A recovery certificate in terms of the order
passed by the DRT was issued and recovery proceedings
were initiated against BPIL. The Recovery Officer, DRT
III (Respondent No.2) attached the property on
29.11.2002. Respondent No.2 issued a proclamation of sale of the said property on 19.08.2004. A public
auction was held on 28.09.2004. The DRT was informed
that there were no bidders except the Appellant. The
offer made by the Appellant to purchase the property
for an amount of Rs.23,00,000/- was accepted by
Respondent No.2. On 14.01.2005, a certificate of sale
was issued by Respondent No.2 in favour of the
Appellant. The possession of the disputed property was
handed over to the Appellant on 25.01.2005 by
Respondent No.2 and a certificate of sale was registered
(3.)The Maharashtra Industrial Development Corporation (hereinafter referred to as 'the MIDC')
informed Respondent No.2 that it received a letter dated
23.03.2006 from the Tax Recovery Officer, Range 1, Kalyan, Respondent No.4 herein stating that the
property in dispute was attached by Respondent No.4
on 17.06.2003. The Appellant requested the Regional
Officer, MIDC by a letter dated 10.04.2006 to transfer
the property in dispute in its favour in light of the Sale
Certificate issued by DRT on 25.01.2005. As the MIDC
failed to transfer the plot in the name of the Appellant,
the Appellant filed a Writ Petition before the High Court
seeking a direction for issuance of 'No Objection' in
respect of the plot and to restrain Respondent No.4 from
enforcing the attachment of the said plot, which was
performed on 11.02.2003.
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