Pending statutory appeal and coercive recovery: writ court granted expedited rehearing and stayed bank-account attachment until decision.

Where a statutory appeal remained pending for an inordinate period after hearing and written submissions, the writ court directed the appellate authority to re-hear the matter and decide it expeditiously within four months. Because coercive recovery steps, including a demand notice and bank-account attachment, were issued on the basis of the adjudication order under challenge while the appeal was still undecided, interim protection was granted. The notice and attachment were stayed until the appeal is decided, and the petitioner was allowed to operate its bank account. The principle stated is that delayed appellate disposal may justify expedited rehearing and interim restraint on recovery measures founded on the impugned order.

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Issues: (i) Whether the appellate authority should be directed to re-hear and decide the pending appeal within a fixed time. (ii) Whether the demand notice and bank-account attachment issued during the pendency of the appeal should remain stayed until the appeal is decided.

Issue (i): Whether the appellate authority should be directed to re-hear and decide the pending appeal within a fixed time.

Analysis: The appeal against the adjudication order had remained undecided for more than two years, although hearing had already taken place and written submissions had been filed. In these circumstances, and especially since the presiding officer who had earlier heard the matter had changed, a direction for re-hearing and early disposal was considered necessary in the interests of justice.

Conclusion: The appellate authority was directed to re-hear the appeal and decide it expeditiously within four months from intimation of the order.

Issue (ii): Whether the demand notice and bank-account attachment issued during the pendency of the appeal should remain stayed until the appeal is decided.

Analysis: The demand notice and the letter for freezing the bank account were issued pursuant to the very adjudication order that was under challenge in the pending appeal. Since coercive steps were being taken while the appeal remained unheard, interim protection was found justified to prevent prejudice until the appellate authority passes a fresh order.

Conclusion: The demand notice and the bank-account attachment were ordered to remain stayed until the appeal is decided, and the petitioner was permitted to operate its bank account.

Final Conclusion: The writ petition was allowed to the limited extent of securing an early appellate hearing and interim protection against coercive recovery, without expressing any view on the merits of the stamp-duty dispute.

Ratio Decidendi: Where a statutory appeal remains pending for an inordinate period, the writ court may direct expedited rehearing and grant interim protection against coercive recovery measures founded on the impugned order until the appeal is freshly decided.

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