Punjab-Haryana High Court

Anant Raj Industreis Ltd vs State Of Hy.Etc on 22 October, 2024

Author: Sanjeev Prakash Sharma

Bench: Sanjeev Prakash Sharma

                               Neutral Citation No:=2024:PHHC:138300-DB



CWP-3503-2005(O&M)
         2005(O&M)                                           (1)

294
      IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                     CHANDIGARH

                                                     CWP-3503-2005(O&M)
                                                                 2005(O&M)
                                                 Date of Decision: 22.10.2024
                                                                     .10.2024


Anant Raj Industries Ltd and another                         . . . . Petitioners

                                    versus

State of Haryana and others                                  . . . . Respondents
                                     ****

CORAM: HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA
       HON'BLE MR. JUSTICE SANJAY VASHISTH

                                 ****
Present:    Mr. Sandeep
                Sand ep Goyal, Advocate for the petitioners.
            Ms. Mamta Singla Talwar, Deputy
                                     Deputy Advocate General, Haryana.
            ****

SANJEEV PRAKASH SHARMA, J.(Oral)

1. This Court notices that vide order dated 26.05.2006, the interim

order whereby the petitioners petitioner were allowed to deposit 50% of the total tax

assessed by the Sales Tax Authorities, Authorities was vacated as the petitioner petitioners did id not

deposit even the 50% 50% amount as allowed by this Court. For reference, order

dated 26.05.2006 is reproduced herebelow:

"We have perused order dated 19.12.2005, wherein it was, inter-alia, inter observed:-

"We are unable to accept the stand of the petitioners. It is manifestly clear from various orders, passed either in the earlier petition or in the present petition, that the petitioner petitioner-Company Company was required to deposit 50 % of the total tax assessed with the Sales Tax Authorities till the issue raised

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by the petitioners in the writ petition was finally settled."

Learned counsel for the petitioner is unable to show that 50% of the total tax assessed has been deposited. In the rejoinder filed, it is stated that the assessee has been granted stay by the appellate authority as a condition for hearing of the appeal and that amount has been deposited.

Since interim order passed by this Court was conditional, we make it clear that the interim order granted in the wri writt petition will not be operative.

List for further hearing on 1.8.2006."

2. Thereafter, on 18.04.2007, the counsel for the petitioner petitioners upon the

statement made by learned counsel for the respondent submits that summons

had been issued to the petitioners petitioner on 30.3.2007 asking the petitioner petitioners to

appear or otherwise face the penalty of attachment and arrest arrest. The he Court

stayed the arrest of the petitioner and attachment of the property. For

reference, order dated 18.04.2007 is reproduced herebelow:

                         "Learned             counsel
                                                   el   for   the     respondents   has

requested for a short adjournment on the ground that the State counsel who was entrusted the brief has bereavement in her family. However, learned counsel for the petitioner has pointed out that the summons were issued to the petitioner itioner on 30.3.2007 by A.C. First Grade Grade--

cum-Assistant Assistant Excise and Taxation Officer, Faridabad asking the petitioner to appear and otherwise to face attachment and arrest (photocopy of which is taken on record as Mark 'A').

As the respondents are seeking ad adjournment, journment, we stay arrest of the petitioner and attachment of the property of the petitioner in the meanwhile.

List again on 2.5.2007."

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3. We find that the counsel at that time did not inform the Court

that the Courts' orders order had not been complied with and not even 50 % of the

total tax had been deposited by him.

4. Thereafter, we find that even as on date the amount has not been

deposited. Considering onsidering the aforesaid aspects, we do not find any reason to

give an opportunity of hearing to the petitioner petitioners in the present writ petition.

The proceedings are in the nature of equitable jurisdiction and the Court acts

as a Court of equity apart from Court of law.

5. A person or a citizen cannot be allowed to play hide and seek

with the he Court and take advantage of of the pendency of the petition by not

making any payments relating to the revenue dues.

6. The respondent/State and its official official(s) act on the basis of orders

passed by the Court and we find that if some interim directions ha have ve been

passed by the Court, Court State Official(s) usually keep their hands away, in view

of the principle of lis pendens. At times, the Court also take takes notice of the

officials overr reaching reaching the process of Court. T Therefore, we find that a huge

amount which was was due as against the petitioner is yet to be recovered. The

Court while granting Stay on the arrest of the petitioner and the attachment of

his property, was not apprised app of the aforesaid facts of non non-payment payment and they

have not noticed the same in the order.

order

7. We find this case to be a gross abuse of process of the Court.

The petitioners petitioner failed to inform the Court about the summons having been

issued on account of non-payment non payment of tax due against him, which was more

than ` 3 crores and required to be paid since 2003. The Court initially

exercised its discretion and directed that he may deposit 50% of the amount

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but the petitioners petitioner did not deposit the same and the interim order passed by

the Court was vacated. The petitioners petitioner did not deposit any amount even

thereafter. The Department, therefore, rightly issued the summons for making

payment, which prescribes attachment and arrest on non non-payment.

payment. The

interim order was passed on the request of the counsel for the petitioner petitioners,,

who ho did not inform the Court about the proceedings. The writ petition was

admitted and sent in due course. Even thereafter the petitioner petitioners did not

deposit any amount and even till date the amount has not been deposited. We

find that the petitioner has misused misused the process of Court for avoiding

payment of tax. At this stage, counsel for the petitioner petitioners submits that he

should be allowed to argue the case.

8. The aforesaid proposition was reiterated by Hon'ble the

Supreme Court in M/s Prestige Lights Limited vvs State Bank of India 2007

(8) SCC 449 has held as under:-

under:

"32. It is thus clear that though the appellant appellant-Company Company had approached the High Court under Article 226 of the Constitution, it had not candidly stated all the facts to the Court. The High Court is exercising discretionary and extraordinary jurisdiction under Article 226 of the Constitution. Over and above, a Court of Law is also a Court of Equity. It is, therefore, of utmost necessity that when a party approaches a High Court, he must place all the facts before the Court without any reservation. If there is suppression of material facts on the part of the applicant or twisted facts have been placed before the Court, the Writ Court may refuse to entertain the petition and dismiss it without entering into merits of the matter."

9. In G.M. Haryana Roadways vs Jai Bhagwan and another 2008

(4) SCC 127, Hon'ble the Supreme Court relying upon the judgment in M/s

Prestige Lights Limited's Limited case (supra), held as under:

under:-

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"The court notices that so as to enable it to refuse to exercise its discretionary jurisdiction, the suppression must be of material fact. What would be a material fact, suppression whereof would disentitle the Appellant to obtain a discretionary relief, would depend upon the facts and circumstances rcumstances of each case.

Recently, in Prestige Lights Ltd. v. State Bank of India, 2007(4) RCR (Civil) 46: 2007(4) RAJ 642: [(2007)8 SCC

449), this court held:

The High Court is exercising discretionary and extraordinary jurisdiction under Article 226 of the Constitution. Over and above, a Court of Law is also a Court of Equity. It is, therefore, of utmost necessity that when a party approaches a High Court, he must place all the facts before the Court without any reservation. If there is suppression of material terial facts on the part of the applicant or twisted facts have been placed before the Court, the Writ Court may refuse to entertain the petition and dismiss it without entering into merits of the matter.

Had the aforementioned facts been brought to the no notice tice of this Court, the Special Leave Petition might have been dismissed summarily. Even delay in filing the same might not have been condoned. The Court was not required to waste so much of time when the State itself had, for all intent and purport, accepted ted the award.

award."

10. We are of the firm view that a person who has attempted to

abuse the process of Court and has taken advantage wrongfully and thereby

deprived the State of its due revenue ought not be allowed to be heard. We

also noticed that the writ petitions are heard where there is violation of legal

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rights of a person, however, considering the facts, as have come on record, it

is apparent that the petitioners petitioner have attempted to mislead the Court and

resultantly huge amount of tax could not be recove recovered from the petitioners or

through attachment of their property. We, accordingly, refuse to entertain the

writ petition and dismiss the same.

11. In the case of Kishore Samrite vs State of Uttar Pradesh and

others 2013 (2) SCC 398, the Supreme Court held as under:

under:-

"35. With the passage of time, it has been realised that people used to feel proud to tell the truth in the courts, irrespective of the consequences but that practice no longer proves true, in all cases cases.. The court does not sit simply as an umpire in a contest between two parties and declare at the end of the combat as to who has won and who has lost but it has a legal duty of its own, independent of parties, to take active role in the proceedings and reach ch at the truth, which is the foundation of administration of justice. Therefore, the truth should become the ideal to inspire the courts to pursue. This can be achieved by statutorily mandating the courts to become active seekers of truth. To enable the courts ourts to ward off unjustified interference in their working, those who indulge in immoral acts like perjury, prevarication and motivated falsehood, must be appropriately dealt with. The parties must state forthwith sufficient factual details to the extent that it reduces the ability to put forward false and exaggerated claims and a litigant must approach the court with clean hands. It is the bounden duty of the court to ensure that dishonesty and any attempt to surpass the legal process must be effectively curbed and the court must ensure that there is

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no wrongful, unauthorised or unjust gain to anyone as a result of abuse of process of court. One way to curb this tendency is to impose realistic or punitive costs.