IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN TUESDAY, THE 12TH JULY 2011 / 21ST ASHADHA 1933 WP(C).No. 8443 of 2011(E) ---------------------------------------- PETITIONER(S): -------------------------- RAJIVE PAUL, CHUNGATH HOUSE, ASRAMAM P.O., KOLLAM DISTRICT, REPRESENTED BY POWER OF ATTORNEY HOLDER, K.K.ZACHARIYA, KARUCHIRA, PALLITHOTTAM P.O., KOLLAM WEST VILLAGE, KOLLAM DISTRICT. BY ADVS. SRI.V.G.ARUN, SRI.T.R.HARIKUMAR. RESPONDENT(S): ----------------------------- 1. THE TAX RECOVERY OFFICER, OFFICE OF THE ADDL. COMMISSIONER OF INCOME TAX, RANGE-I, C.R.BUILDING, I.S.PRESS ROAD, COCHIN-682 018. 2. THE COMMISSIONER OF INCOME TAX, OFFICE OF THE COMMISSIONER OF INCOME TAX, RANGE-I, C.R.BUILDING, I.S.PRESS ROAD, COCHIN-682 018. 3. THE CHIEF MANAGER, CENTRAL BANK OF INDIA, SEBROF BUILDING, SUBRAMANIAN ROAD, WILLINGDON ISLAND, KOCHI-682 003. R1 & R2 BY ADV. SRI.JOSE JOSEPH, SC, INCOME TAX R3 BY ADVS. SRI.DEVAN RAMACHANDRAN,SC SRI.K.M.ANEESH, SRI.S.NIKHIL SANKAR. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12/07/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.8443/2011 E APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF THE LETTER DTD. 3/3/2010. P2: COPY OF THE LETTER DTD. 22/03/2010. P3: COPY OF THE SALE CERTIFICATE DTD. 17/07/2010. P4: COPY OF THE ENCUMBRANCE CERTIFICATE DTD. 20/12/2010. P5: COPY OF THE REQUEST DTD.11/01/2011. P6: COPY OF THE LETTER DTD. 31/01/2011 ISSUED BY THE 1ST RESPONDENT. RESPONDENT'S EXHIBITS: R1(A): COPY OF THE LETTER ADDRESSED TO THE TAX RECOVERY OFFICER DTD. 16/10/2008. /TRUE COPY/ P.S.TO JUDGE Kss S. SIRI JAGAN, J. ------------------------------------------------- W.P.(C)No.8443 OF 2011 ------------------------------------------------- DATED THIS THE 12th DAY OF JULY, 2011 J U D G M E N T The 3rd respondent Bank initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, in respect of certain properties belonging to one of the defaulters in re-payment of loan amounts due to them. In the sale conducted under the Act the petitioner purchased the property. The sale is complete. But the petitioner now understands that there is an attachment of the property in favour of Income Tax Department. According to the petitioner in a sale under the Act, the purchaser gets the property free from all encumbrances and therefore the Income Tax Department cannot enforce the attachment as against the petitioner, who is a bonafide purchaser. 2. I heard the counsel for the petitioner, counsel for the Income Tax Department and counsel for the Bank. I am not inclined to go into the question as to whether the Income Tax Department has prior charge over the property in so far as it is not necessary to consider the same in this writ petition. If at all W.P.(C)No.8443/2011 -2- the Income Tax Department has any prior charge over the property in view of the attachment made by them, that can he realised from the sale price received by the Bank, since the Income Tax Department has no case that the sale is vitiated by fraud. Therefore, without prejudice to the right of the Income Tax Department to take up the matter with the Bank appropriately as to the apportionment of the sale price as between them, I direct that the attachment effected by the Income Tax Department on the property would stand lifted. On production of a copy of the judgment , the appropriate Sub registrar's office where the attachment is registered, the Sub Registrar shall record the fact that the Court has lifted the attachment in the records relating to the property in that office. The Writ petition is disposed of as above. Sd/- S. SIRI JAGAN, JUDGE. AMG True copy P.A to Judge