Court Grants Stay on Payment Demand, Property Offered as Security

The court granted a stay on the demand for payment under Section 274 and 278(A) until the next adjourned date. The petitioner offered a specified portion of their property as security, and three fixed deposits with a bank were to be furnished as additional security. The court directed the bank not to release the fixed deposits and scheduled further consideration on the matter. The case was adjourned for parties to provide submissions, with final decisions to be made on 25.10.2021.

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Issues: Stay of demand for payment under Section 274 and 278(A) - Security for demand - Availability of Video Conference recording

In this case, the primary issue before the court was the request for a stay on the demand for payment under Section 274 and 278(A) due to the impending deadline. The petitioner sought to avoid serious consequences by requesting the operation of the demand to be stayed. The court considered the substantial amount involved and the penalty under consideration, emphasizing the need for a balance in deciding on the stay. The petitioner proposed offering a specified portion of their property as security to ensure eventual recovery by the Revenue.

Another issue arose regarding the security for the demand raised. The court was presented with details of three fixed deposits with a bank, each amounting to a significant sum, to be furnished as security. The petitioner undertook not to withdraw these fixed deposits until further court orders, providing assurance to the court regarding the security offered.

Furthermore, the issue of the availability of the Video Conference recording was raised during the proceedings. The court allowed time for the petitioner to receive the necessary instructions related to the recording and scheduled the matter for further consideration on a later date.

The court, after hearing both sides, granted a stay on the demand for payment under Section 274 and 278(A) until the next adjourned date. It directed the concerned bank not to permit the release of the fixed deposits as part of the security arrangement. The court indicated that additional orders concerning the security for protecting the Revenue's interest would be addressed in the next hearing. The case was adjourned to 25.10.2021 for the parties to provide further submissions and for the court to make a final decision based on the information presented.

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