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        Case ID :

        2022 (8) TMI 151 - SCH - FEMA

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        Supreme Court dismisses stay application over Tribunal delay, parties turn to High Court. Dissatisfaction expressed. The Supreme Court dismissed a stay application due to the Government's failure to constitute a Tribunal for over three years, leading private parties to ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Supreme Court dismisses stay application over Tribunal delay, parties turn to High Court. Dissatisfaction expressed.

                              The Supreme Court dismissed a stay application due to the Government's failure to constitute a Tribunal for over three years, leading private parties to seek relief from the High Court. The Court expressed dissatisfaction with the situation, resulting in the application's dismissal. The grievance of the petitioner was reported as resolved with the decision to notify Members. A query arose regarding conducting hearings before the Tribunal in the absence of the Chairman, with the Court seeking clarification. The Court deliberated on issuing an order to stay recovery proceedings due to the non-constitution of the Tribunal, adjourning the matter for further consideration.




                              Issues involved:
                              1. Stay application dismissed due to non-constitution of Tribunal for over three years.
                              2. Grievance of the petitioner resolved with the decision to notify Members.
                              3. Query on the possibility of hearings before Tribunal without Chairman.
                              4. Consideration of stay of recovery proceedings due to non-constitution of Tribunal.

                              Analysis:

                              1. The Supreme Court dismissed a stay application (IA No. 87842/2022) due to the Government's failure to constitute a Tribunal for over three years, forcing private parties to seek relief from the High Court. The Court expressed dissatisfaction with the situation, leading to the dismissal of the application.

                              2. The grievance of the petitioner in SLP [C] NO.7551/2022, previously addressed by the Telangana High Court, was reported as resolved. The Court was informed that the Appointments Committee of the Cabinet decided to notify the Members on a specific date, and the official notification of their appointment was imminent.

                              3. A query arose regarding the possibility of conducting hearings before the Tribunal in the absence of the Chairman. The Court sought clarification on whether proceedings could proceed with the appointment of four members, pending the appointment of the Chairman. The ASG requested time to seek instructions on this matter.

                              4. The Court deliberated on the need to issue an order to stay recovery proceedings in all matters before the Tribunal. The concern was raised due to the absence of the constituted Tribunal, leading to litigants resorting to the High Court, causing unnecessary expenses and burdening the High Court. The matter was adjourned for further consideration on 02.08.2022 to address this issue comprehensively.
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                              ActsIncome Tax
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