TaxTMI 
TaxTMI 
2018 (1) TMI 862
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....ire purchase money within a period of one month. The writ petition was filed in the following circumstances: The appellant is the absolute owner of an extent of 6.08 acres of land comprised in Sy. No. 360/4 of Thachanattukara-II Village in Mannarkkad Taluk of Palakkad District. The son-in-law of the appellant had availed a loan from the 1st respondent Bank. The immovable property of the appellant mentioned above was furnished as security for the loan transaction, creating a mortgage in respect of the same. His son-in-law committed default in repayment of the loan amount. The 1st respondent thereupon preferred O.A. No. 202 of 2001 before the Debts Recovery Tribunal, Ernakulam ('DRT' for short). The appellant was the 2nd defendant in the said proceedings. The O.A. was allowed and the Tribunal issued Recovery Certificate No. 1463 authorising the Recovery Officer to recover the amount due from the defendants therein. The appellant is the 2nd certificate debtor before the Recovery Officer, Debts Recovery Tribunal, Ernakulam in D.R.C. 1463. The property of the appellant was the A schedule property in the said proceedings. The property was sold by the 4th respondent Recovery Of....
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....y a proclamation and sale, after fixing a reserve price. Attachment and sale have been stipulated by the Rules in the Second and Third Schedules of the IT Act from Rule 48 onwards. In the present case, it is contended that, none of the procedures contemplated have been complied with. Therefore, the sale is void and liable to be set aside. 6. Apart from the above, the sale is vitiated, having been conducted after the expiry of the time limit stipulated by Rule 68B of Second and Third Schedules to the IT Act. According to the learned counsel, the O.A. was allowed on 27.2.2004. Limitation would start to run from the said date. Therefore, it is contended that the sale ought to have been conducted before 27.2.2007. But, the sale was conducted only on 27.11.2011 long after the expiry of the period stipulated by the provision. In view of the above, it is contended that the sale is void and liable to be set aside. The learned counsel has a further contention that the property that was sold was much more valuable than the amount for which it was purchased by respondents 2 and 3. The property is more than 6 acres in extent. It was not necessary for such a large extent of property to have ....
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....ourt alleging that he had no notice of the proceedings in the O.A. filed by the Bank. This Court directed the DRT to consider and pass orders on a petition filed by the appellant before the said forum. Meanwhile, the son-in-law of the appellant approached the Debts Recovery Appellate Tribunal ('DRAT' for short) by filing an appeal. The auction proceedings were stayed on condition that an amount of Rs. 3 Lakhs was paid on 21.3.2006, a further amount of Rs. 2 Lakhs before 31.3.2006 and an amount of Rs. 15 Lakhs within 3 months from 28.4.2006. However, no deposit was made as contemplated by the interim order. Thereafter, on 3.4.2006 on finding that the conditions had not been complied with, the DRAT directed the deposit of an amount of Rs. 50,000/-, failing which the appeal would stand rejected. Since the said order was not complied with, the appeal was dismissed. The said order of the DRAT was challenged by the son-in-law of the appellant before this Court in W.P.(C) No. 14251 of 2006. This Court admitted the appeal and granted an interim order adjourning the sale on condition that an amount of Rs. 5 Lakhs was deposited on or before 7.6.2006. The said condition was also not c....
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.... (1), the period- (i) during which the levy of the aforesaid tax, interest, fine, penalty or any other sum is stayed by an order or injunction of any court; or (ii) during which the proceedings of attachment or sale of the immovable property are stayed by an order or injunction of any court; or (iii) commencing from the date of the presentation of any appeal against the order passed by the Tax Recovery Officer under this Schedule and ending on the day the appeal is decided, shall be excluded: Provided that where immediately after the exclusion of the aforesaid period, the period of limitation for the sale of the immovable property is less than 180 days, such remaining period shall be extended to 180 days and the aforesaid period of limitation shall be deemed to be extended accordingly. (3) Where any immovable property has been attached under this Part before the 1st day of June, 1992, and the order giving rise to a demand of any tax, interest, fine, penalty or any other sum, for the recovery of which the immovable property has been attached, has also become conclusive or final before the said date, that date shall be deemed to t....
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....her in view of section 29 of the DRT Act, all the provisions of the IT Rules would become applicable to proceedings before the DRT. The above aspect has been considered by the Apex Court in Paramsivan C.N. v. Sunrise Plaza Tr.Partner ((2013) 9 SCC 460). After considering the scope of Section 29, the Apex Court has held in paragraph 21 of the said decision as follows: "21. Applying the above principles to the case at hand Section 29 of the RDDB Act incorporates the provisions of the Rules found in the Second Schedule to the Income-tax Act for purposes of realisation of the dues by the Recovery Officer under the RDDB Act. The expressions "as far as possible" and "with necessary modifications" appearing in Section 29 have been used to take care of situations where certain provisions under the Income-tax Rules may have no application on account of the scheme under the RDDB Act being different from that of the Income- tax Act or the Rules framed thereunder. The provisions of the Rules, it is manifest, from a careful reading of Section 29 are attracted only in so far as the same deal with recovery of debts under the Act with the modification that the 'amount of debt' ref....