JUDGMENT
S.H. Kapadia, J.
1. Rule. Respondents waive service.
2. Petitioners are directed to amend the petition and bring on record A.N. Corporation as respondent No. 5. Leave to amend. Accordingly, amendment should be carried out within one week from the date of the receipt of this order. By consent, the matter is taken up for final hearing.
3. By this writ petition, M/s Videocon International Ltd. seeks to challenge prohibitory order dt. 14th Dec., 1999, under Section 226(3) of the IT Act, 1961. The Order is directed to Indusind Bank Ltd.
Facts
4. The facts giving rise to this petition, briefly, are as follows:
5. M/s Devprayag Properties Ltd. are the assessees under the Act. An amount of Rs. 19.22 crores is due and payable by M/s Devprayag Properties Ltd. to the IT Department. The sister concern of M/s Devprayag Properties Ltd. is A.N. Corporation–newly added respondent No. 5 (formerly known as A.N. Properties). A.N. Properties are the registered holders of 10 lakh shares of Indusind Bank Ltd.
The accumulated dividend on 10 lakh shares is Rs. 76,23,820 lying to the credit of M/s A.N. Properties. This dividend has been attached by the Department on the ground that M/s A.N. Properties are the debtors of M/s Devprayag Properties Ltd. By letter dt. 14th Nov., 2000 (Exhibit-K) addressed by the petitioners to the TRO, the Department was informed that the petitioners were the beneficial owners of the above shares of Indusind Bank Ltd. held in the name of M/s A.N. Properties. By the said letter, the petitioners objected to the Department attaching the above dividend amounting to Rs. 76,23,820. Pursuant to the letter dt. 14th Nov., 2000, the TRO called upon the petitioners vide letter dt. 22nd Nov., 2000, to produce proof in support of their claim. It is the case of the petitioners that they had advanced to M/s A.N. Properties an amount of Rs. 13 crores. That, Rs. 5 crores remained outstanding. According to the petitioners, M/s A.N. Properties had pledged the above 10 lakh shares with the petitioners. That, the shares are in physical custody of the petitioners along with the transfer forms duly signed by the petitioners. At this stage, we may mention that the shares with the transfer forms were shown to us during the hearing. It is the case of the petitioners that, subsequently, they purchased the shares and, therefore, they were the beneficial owners of the shares. Accordingly, they have objected to the attachment of the accruals on the said shares by this petition. In reply, we find that there are serious disputes between the petitioners on the one hand and M/s A.N. Corporation Ltd. (formerly known as A.N. Properties) on the other hand. M/s A.N. Properties have denied the claim of the petitioners.
Findings
6. We are not, at this stage, required to go into the merits of the case. The TRO has issued a show-cause notice to the petitioners. He has called upon the petitioners to appear before him with proof in support of their claim. In the circumstances, the following order is passed:
Order
(a) Pursuant to the notice dt. 22nd Nov., 2000, the TRO will hear the petitioners along with respondent No. 5-A.N. Corporation. During the hearing, the petitioners will produce all relevant documents. The TRO will also hear A.N. Corporation-respondent No. 5. Thereafter, the TRO will decide the matter giving reasons in accordance with law. The matter should be decided on/or before 31st Dec., 2002. The order should be communicated to the parties by the TRO on/or before 5th Jan., 2003.
(b) The prohibitory order dt. 14th Dec., 1999, shall continue to remain in force upto 15th Jan., 2003. That, upto 15th Jan., 2003, the Department will not appropriate the said amount of Rs. 76,23,820 till 15th Jan., 2003. However, if the Department has already appropriated the said amount before 4th Sept., 2002, pursuant to the orders passed by the Competent Court in some other proceedings then this order will not come in the way of the Department. This clarification is required to be given because several litigations are pending between the parties in various Courts.
(c) We express no opinion on the merits of the case.
7. Parties to act on an ordinary copy of this order, duly authenticated by the Associate of this Court. Issuance of certified copy expedited.
8. Subject to above, writ petition is disposed of. No order as to costs.