Legacy dispute resolution lapse upheld where delayed payment arose from bank error, not committee fault.

Under the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019, a declaration can lapse where payment is not made within the prescribed time. The Delhi HC noted that the delay here resulted from the petitioner's bank reversing the remittance because of an internal error, but the Designated Committee was not shown to have erred and the refusal to treat the declaration as effective was consistent with the scheme and the relevant transitional provisions. The petitioner was left free to pursue any remedy against the bank, and the requested direction for acceptance of the declaration and issuance of a discharge certificate was not granted.

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Issues: Whether the petitioner's application under the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 was rightly treated as lapsed for non-payment within the prescribed time, and whether the petitioner was entitled to a direction for acceptance of the declaration and issuance of a discharge certificate.

Analysis: The delay in making the payment was attributable to the petitioner's bank, which reversed the remittance due to an internal error. The Designated Committee was not shown to have committed any error, and the impugned decision was consistent with Section 127(5) of the Finance Act, 2019 read with Section 7(iv) of the Taxation and Other Laws Ordinance, 2020. The Court also found no basis to fault the respondent for treating the application as lapsed, and left the petitioner free to pursue any remedy against its bank.

Conclusion: The application was validly treated as lapsed, and the requested reliefs were not granted.

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