Recovery notice and attachment endorsement over auctioned secured asset: payment of outstanding dues directed to enable sale certificate registration.

A writ petition challenging a recovery notice and attachment endorsement concerning a sold secured asset was disposed of after the Court considered the petitioner's willingness to clear the outstanding government dues. The property had been sold in e-auction after the loan account became an NPA, while the revenue authorities relied on recovery proceedings under the Tamil Nadu GST Act and the CGST Act for the remaining dues. The Court directed payment of the balance amount within four weeks so that the sale certificate could be registered in favour of the auction purchaser.

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Issues: Whether the writ petition challenging the recovery notice and attachment endorsement could be disposed of by directing payment of the balance government dues so that the sale certificate could be registered.

Analysis: The subject property was treated as a secured asset and had been sold in e-auction after the loan account became an NPA. The revenue authorities asserted that recovery proceedings had been initiated under Section 79 of the Tamil Nadu Goods and Services Tax Act, 2017 read with the Central Goods and Services Tax Act, 2017, and that a balance amount remained payable towards government dues. In view of the petitioner's readiness to pay the remaining amount, the Court considered it appropriate to secure payment of the outstanding dues while enabling completion of the registration process in favour of the auction purchaser.

Conclusion: The writ petition was disposed of with a direction to pay the remaining amount of Rs. 21,99,700/- within four weeks to facilitate registration of the sale certificate.

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