High Court of Madras: Bank account attachment lifted due to petitioner's payments.

The High Court of Madras addressed a writ petition challenging the provisional attachment of a bank account during an investigation. Initially considering releasing certain accounts, the court later lifted the attachment on one account due to adhoc payments made by the petitioner, deeming the challenge irrelevant. Consequently, the court closed the petition without costs, as the petitioner's actions rendered the initial challenge moot.

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Issues:
Challenge to provisional attachment of bank account pending investigation.

Analysis:
The High Court of Madras, presided over by Dr. Justice Anita Sumanth, addressed a writ petition challenging the provisional attachment of a bank account during ongoing investigation proceedings. Initially, the petitioner's counsel highlighted that all bank accounts of the petitioner had been attached, severely impacting their business operations. In response, the court suggested that a partial release of certain accounts, adequate to safeguard the revenue's interests, could be considered while keeping some accounts under attachment. The court directed the petitioner to approach the respondent with a specific request in this regard, with instructions for prompt action within a week of the petitioner's appearance.

Subsequently, it was revealed that the petitioner had made adhoc payments while the investigation was ongoing, leading to the lifting of the attachment on the bank account of Mutharamman Iron and Steels. Given this development, the court noted that the challenge to the provisional attachment was no longer relevant. Consequently, the court decided to close the writ petition along with the connected miscellaneous petitions, without imposing any costs on either party.

In conclusion, the court's decision to close the writ petition stemmed from the petitioner's actions in making adhoc payments, resulting in the lifting of the bank account attachment. The court's initial directive to consider releasing some accounts for business continuity was rendered moot by the petitioner's subsequent actions, leading to the dismissal of the challenge to the provisional attachment.

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