Madras High Court
Om Sakthi Narayani Siddar Peedam vs The Assistant Commissioner on 2 August, 2021
W.A.Nos.1888 & 1889 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 02.08.2021
CORAM :
THE HON'BLE MR. JUSTICE T.S. SIVAGNANAM
AND
THE HON'BLE MR. JUSTICE SATHI KUMAR SUKUMARA KURUP
W.A.Nos.1888 & 1889 of 2021
and
C.M.P.Nos.12069 & 12068 of 2021
Om Sakthi Narayani Siddar Peedam
Charitable Trust, represented by
Trustee, K.Soundararajan
No.14, 5th Cross Street,
Rajiv Gandhi Nagar,
Vellore – 1 ... Appellant
in both appeals
Vs.
1.The Assistant Commissioner
(Commercial Taxes)
Vellore District,
4, Bharathiar Road,
Vellore.
2.The Commercial Tax Officer
Vellore (Rural)
4, Bharathiar Road,
Vellore.
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W.A.Nos.1888 & 1889 of 2021
3.The Liquidator,
Vellore District Co-operative Spinning Mills,
Vellore
4.The Joint Commissioner
The Commercial Tax
Vellore District
4, Bharathiar Road,
Vellore. ... Respondents
in W.A.No.1888 of 2021
[R3 impleaded vide order of this Court
dated 24.02.2020 in W.M.P.No.3007 of 2020
in W.P.No.24137 of 2008]
[R4 impleaded vide order of this Court
dated 23.03.2021 in W.M.P.No.7216 of 2021
in W.P.No.24137 of 2008]
1.Sivakumar
Deputy Commissioner (Commercial Taxes)
Vellore
Vellore District.
2.The Assistant Commissioner (CT) (Territorial)
Vellore District,
4, Bharathiar Road,
Vellore.
3.The Commercial Tax Officer,
Vellore (Rural)
4, Bharathiar Road,
Vellore.
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W.A.Nos.1888 & 1889 of 2021
4.The Administrator,
North Arcot District Co-operative Spinning Mills,
Ariyur.
5.The Director of Handlooms and Textiles,
Kuralagam, II Floor,
Chennai – 600 108. ... Respondents
in W.A.No.1889 of 2021
[R4 & R5 impleaded vide order of this Court
dated 09.09.2008 in M.P.Nos.2 & 3 of 2008
in W.P.No.4958 of 2008]
Prayer : Writ Appeals in W.A.Nos.1888 and 1889 of 2021 filed under
Clause 15 of the Letters Patent to set aside the order, dated 23.03.2021,
passed in W.P.Nos.24137 and 4958 of 2008 respectively.
For Appellant : Mr.Murali Kumaran
for M/s.McGan Law Firm
in both the appeals
For Respondents : Mr.M.Venkateswaran
Government Advocate
in both the appeals
COMMON JUDGMENT
(Judgment was delivered by T.S. SIVAGNANAM, J.)
These Writ Appeals by the Charitable Trust/writ petitioner are directed
against the order in W.P.Nos.4958 and 24137 of 2008 dated 23.03.2021.
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W.A.Nos.1888 & 1889 of 2021
2.The appellant, a Charitable Trust, sought for issuance of a writ of
mandamus to direct the respondents to confirm the highest bid submitted by
them in the auction conducted by the 3rd respondent on 06.12.2006 in respect
of the property which was brought for auction in the default committed by
the Dealer, namely, Vellore District Co-operative Spinning Mills, Vellore,
under the provisions of the Tamil Nadu General Sales Tax Act, 1959. The
prayer in the other writ petition was to quash the proceedings of the 1st
respondent, dated 14.08.2008, by which, the 1st respondent set aside the sale
of the property, in which, the appellant had participated. The learned Writ
Court did not grant the relief sought for, but granted a small reprieve to the
appellant by directing the amount deposited by the appellant, being a sum of
Rs.1,35,00,000/-, to be refunded back to the appellant together with interest
accrued thereon at the prevailing rates from time to time. The Court further
observed that the appellant should furnish the details of the Bank Account to
enable the Commercial Taxes Department to pay the said amount together
with interest at the prevailing Bank rates and no interest will be payable if
the appellant refuses to give the account details.
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W.A.Nos.1888 & 1889 of 2021
3.The appellant is before us contending that the auction should not
have been cancelled on the ground that the property was never owned by the
Co-operative Spinning Mills and without prejudice to such contention, it is
submitted that the refund of the amount collected from the appellant should
have been directed to be refunded with commercial penal interest.
4.Mr.Murali Kumaran, learned counsel for M/s.McGan Law Firm,
counsel for the appellant, would submit that, though the appellant had
questioned the correctness of the decision of the Department in setting aside
the auction sale, in these appeals, the appellant's contention is with regard to
the rate of interest alone.
5.We have elaborately heard the submissions of the learned counsel
for the appellant, as well as the learned Government Counsel appearing for
the respondents.
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W.A.Nos.1888 & 1889 of 2021
6.It is not in dispute that the property, which was put up for auction
pursuant to the auction notice dated 05.11.2006, was not owned by Vellore
District Co-operative Spinning Mills. It may be true that the Commercial
Taxes Department accepted the said property as one of the securities at the
time of granting registration under the provisions of the Tamil Nadu General
Sales Tax Act, but that may not be a ground which will inure in favour of the
appellant who voluntarily participated in the auction sale and therefore, as an
intending purchaser, the appellant was required to exercise due diligence and
make thorough verification and cannot turn around and say that it is for the
Department to verify all the facts. The Doctrine of Caveat Emptor stares at
the appellant. The learned Single Bench was right in refusing to grant the
relief sought for and it is equally right in directing the amount paid by the
appellant to be refunded and also with regard to the rate of interest.
Therefore, we find no ground to interfere with the order passed by the
learned Single Bench. This finding will ultimately lead to the dismissal of
the Writ Appeals. As a consequence, the appellant is entitled to refund of the
amount along with interest at Bank rates which are fixed from time to time.
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W.A.Nos.1888 & 1889 of 2021
The respondent State would submit that, even in the year 2008, when the
amount was refunded to the appellant, the same was refused to be accepted.
Be that as it may, the fact remains that the amount is yet to be refunded
together with interest thereon, as ordered by the learned Single Bench.
7.Before concluding this judgment, we would observe that the
appellant is a Charitable Trust and has a huge establishment in Vellore and it
is also represented that it is doing several charitable activities. If that is so,
the appellant can be gracious enough to give up the claim for interest payable
by the Government, because, the Government Exchequer is greatly strained
due to Covid-19 Pandemic and it is common knowledge that several
philanthropists, industrialists, Charitable Trusts, individuals, Government
servants have come forward to voluntarily contribute to the Government to
enable them to tackle the pandemic situation. Therefore, it is open to the
appellant to make note of this observation and come forward and give up the
claim for interest. In the event the appellant is willing, they may give a letter
in writing signed by the authorized signatory of the appellant/Trust, and on
receipt of the said letter, the respondent Department shall refund the said
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W.A.Nos.1888 & 1889 of 2021
amount within a period of three weeks from the date on which the said letter
is received. In the event the appellant is not willing to give up the claim for
interest, the refund as ordered by the learned Single Bench shall be effected
within a period of twelve weeks from the date of receipt of a copy of this
judgment.
8.Accordingly, these Writ Appeals are dismissed. No costs.
Consequently, connected miscellaneous petitions are closed.
(T.S.S., J.) (S.S.K., J.)
02.08.2021
mkn
Internet : Yes
Index : Yes / No
Speaking order / Nonspeaking order
To
1.The Joint Commissioner
Commercial Tax,
Vellore District,
4, Bharathiar Road,
Vellore.
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W.A.Nos.1888 & 1889 of 2021
2.The Deputy Commissioner (Commercial Taxes)
Vellore
Vellore District.
3.The Assistant Commissioner
(Commercial Taxes)
Vellore District,
4, Bharathiar Road,
Vellore.
4.The Assistant Commissioner (CT) (Territorial)
Vellore District,
4, Bharathiar Road,
Vellore.
5.The Commercial Tax Officer
Vellore (Rural)
4, Bharathiar Road,
Vellore.
6.The Director of Handlooms and Textiles,
Kuralagam, II Floor,
Chennai – 600 108.
7.The Liquidator,
Vellore District Co-operative Spinning Mills,
Vellore
8.The Administrator,
North Arcot District Co-operative Spinning Mills,
Ariyur.
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W.A.Nos.1888 & 1889 of 2021
T.S. SIVAGNANAM, J.
and
SATHI KUMAR SUKUMARA KURUP, J.
mkn
W.A.Nos.1888 & 1889 of 2021
02.08.2021
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