Court orders petitioner company to rectify property valuation & GST liability issues, submit detailed plan & affidavit.

The court directed the petitioner company to address discrepancies in property valuation and claimed GST liability, emphasizing the need for unencumbered properties and possession of original title deeds. The company was instructed to provide specific instructions on bridging the monetary gap, including details on property encumbrance, title deeds, and a plan to cover the GST liability. An affidavit addressing these aspects was required by a specified deadline, with further instructions for document submission under the Court Master's supervision at the next hearing scheduled for 5th March 2021.

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Issues:
1. Valuation of properties offered as security by the petitioner company.
2. Concern regarding encumbrance and possession of original title deeds for the properties.
3. GST liability of the petitioner company, including principal amount and interest.
4. Potential penalty on the petitioner company.
5. Instructions for the petitioner company to bridge the gap between property value and the claimed amount by the respondent.

Analysis:

1. The court noted that the petitioner company offered five immovable properties as security, with varying valuations provided by different sources. The cumulative purchase value as per the respondent was Rs. 9,80,51,000, while the petitioner's valuation ranged from Rs. 10,44,00,000 to Rs. 11,47,30,000 based on circle rates and purchase consideration.

2. Emphasizing the importance of unencumbered properties and possession of original title deeds, the court highlighted the need for clarity on these aspects to ensure the adequacy of the security offered by the petitioner company.

3. The respondent asserted that the GST liability of the petitioner company amounted to Rs. 20.22 crores, comprising a principal amount of Rs. 17.26 crores and interest of Rs. 2.96 crores. Additionally, the possibility of a penalty was mentioned, although no formal notice had been issued.

4. Considering the discrepancy between property value and the claimed GST liability, the court directed the petitioner company to provide specific instructions on bridging this monetary gap. The court required details on the unencumbered nature of the properties, willingness to deposit original title deeds, and a plan to cover the liability towards GST.

5. The petitioner company was instructed to file an affidavit addressing the specified aspects by the given deadline, with a copy to be provided to the respondent. The matter was scheduled for the next hearing on 5th March 2021, with further instructions for document submission under the Court Master's supervision.

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