Back
SUPREME COURT OF INDIA
A.M. Khanwilkar, Ajay Rastogi, JJ.
SUNIL VASUDEVA AND OTHERS – Appellant(s)
VERSUS
SUNDAR GUPTA AND OTHERS – Respondent(s)
Civil Appeal No(s). 5140 of 2019 (Arising out of SLP(C ) No(s). 5449 of 2015)
Decided on : 02-07-2019
(2013) 8 SCC 320 - Relied upon
AIR 1965 SC 440 - Referred
Facts of the case:
Respondent nos. 1, 2 and 3 (writ petitioners) are the grandsons of Kirodimull Lohariwala and sons of Premchand Gupta both since deceased, who constituted a H.U.F. which owned property No. 43, Prithviraj Road, New Delhi(subject property) standing in their joint names having other properties at Calcutta.
In August, 1957, late Kirodimull Lohariwala instituted a Suit No. 1451 of 1957 before the High Court of Calcutta against Premchand Gupta claiming the said property including other properties as his self-acquired properties. The official receiver was appointed over the subject property by the High Court of Calcutta, who took possession of the property on 1st May, 1958. The said property was purported to be sold under Certificate proceedings initiated by Income Tax Department for recovery of alleged income tax dues of Sambhuram Kirodimull HUF to late V.N. Vasudeva for a sum of Rs. 2,60,000/- on 18thAugust, 1964. The present appellants are legal heirs of the said Vasudeva.
Respondent nos. 1-3 filed Title Suit No. 471 of 1985 before the District Judge at Delhi on 19th May, 1985 for seeking declaration to continue to be the owners of the suit property and for injunction restraining the auction purchaser V.N. Vasudeva, predecessor of the appellants from changing the nature of the property. Income tax authorities were not impleaded as parties to the suit.
Respondent nos. 1-3 also filed Writ Petition bearing C.O. No. 18500(W) of 1985 against the Union of India and the present appellants in the High Court of Calcutta regarding the purported sale of the Delhi property to late V.N. Vasudeva under auction dated 18th August, 1964 declaring that the purported sale dated 18th August, 1964 and issuance of the certificate of confirmation of sale dated 1st April, 1965 in respect of the Delhi property be declared as null and void and the subject property be remained under attachment by income tax authorities.
Judgment on the writ petition was reserved by High Court of Calcutta in March/April, 1986 and after almost four and a half years, the Writ Petition was dismissed on 26thOctober, 1990. Immediately thereafter, respondent nos. 1-3 filed an application for recalling/setting aside the order dated 26th October, 1990 and for deciding the writ petition on merits.
Single Judge of the High Court of Calcutta allowed the application filed by respondent nos. 1-3 and recalled the Order dated 26th October, 1990 by restraining Vasudevas from dealing with the subject property with the direction to hear the matter on merits.
The Division Bench of the High Court of Calcutta in M.A.T. No. 87 of 1999 disposed of the appeal without interfering with the order of recalling on review application dated 20th November, 1998. SLP(C) thereagainst was dismissed.
The present appellants filed application in the disposed of Writ Petition No. 18500(W) of 1985 inter alia praying that the respondents be restrained from proceeding with any advertisement for sale of suit property as no such liberty has been given by the Court. The miscellaneous application was held to be not maintainable under High Court Order dated 31st March, 2006.
The appeal assailing the order dated 31st March, 2006 was dismissed vide Order dated 19th October 2012 with liberty to the respondents to file a fresh suit on the self-same cause of action in Delhi, if so advised. By the impugned order dated 24th September, 2014, the Order dated 19th October, 2012 was reviewed and the order dated 31st March, 2006 was set aside and the Writ Petition No. 18500(W) of 1985 was directed to be heard on its own merits.
Finding of the Court:
Review petition has rightly been dismissed by the High court.
Result: Appeal dismissed.
JUDGMENT
Ajay Rastogi, J.
Leave granted.
2. The present appeal is being filed against the impugned judgment dated 24th September, 2014 passed by the High Court of Calcutta in RVW No. 272 of 2012 recalling the Order dated 19th October, 2012 and while setting aside the order dated 31st March, 2006 restoring the Writ Petition No. 18500(W) of 1985 to be heard on its own merits as expeditiously as possible which is a subject matter of challenge in appeal before us.
3. The facts that emerge from the multitude and collateral and exhaustive pleadings of the parties in nutshell are that respondent nos. 1, 2 and 3 (writ petitioners) are the grandsons of Kirodimull Lohariwala and sons of Premchand Gupta both since deceased, who constituted a H.U.F. which owned property No. 43, Prithviraj Road, New Delhi(subject property) standing in their joint names having other properties at Calcutta.
4. The present appellants are alleged to be the legal heirs of late V. N. Vasudeva who happens to be the income tax practitioner and lawyer of late Kirodimull Lohariwala had purchased the subject property in an open auction conducted by the Income Tax Department on 18th August, 1964 for a consideration of Rs. 2,60,000/- and the sale certificate with respect to the suit property was issued on 1st April, 1965.
5. In August, 1957, late Kirodimull Lohariwala instituted a Suit No. 1451 of 1957 before the High Court of Calcutta against Premchand Gupta claiming the said property including other properties as his self-acquired properties and in the interregnum period, the official receiver was appointed over the subject property by the High Court of Calcutta, who took possession of the property on 1st May, 1958. The said property (43, Prithviraj Road, New Delhi) was purported to be sold under Certificate proceedings initiated by Income Tax Department for recovery of alleged income tax dues of Sambhuram Kirodimull HUF to late V.N. Vasudeva for a sum of Rs. 2,60,000/- on 18thAugust, 1964.
6. At this stage, objection was raised by late Kirodimull Lohariwala against such purported sale to V.N. Vasudeva for the reason that no leave was obtained from the High Court of Calcutta which was although overruled by the Chief Commissioner, Delhi on 26th February, 1965. At the same time, application was filed by the Income Tax Department in the said Suit No. 1451 of 1957 praying for (a) condonation of the omission to obtain leave of Court before putting the Delhi property for sale and (b) leave be given to it to complete the said sale of the Delhi property in favour of V.N. Vasudeva and to give further effect thereto. A certification of confirmation of sale was issued by the District Collection Officer, Delhi purporting to confirm the said purported sale dated 18th August, 1964 in favour of late V.N.Vasudeva. At this stage, order was passed by the High Court of Calcutta on the application of Union of India dated 8th September, 1965 granting liberty to the Income Tax Department to put the Delhi property for sale by public auction or private treaty to the best purchaser or purchasers that can be got for the same. What will be the effect of the later order passed by the High Court of Calcutta dated 8th September, 1965 in reference to the order of the District Collection Officer, Delhi for confirmation of the auction sale will not be advisable for this Court to examine.
7. A detailed correspondence took place between the Income Tax Department and late Premchand Gupta (father of respondent nos. 1-3) which is not required to be dilated in the instant proceedings.
8. At this stage, respondent nos. 1-3 filed Title Suit No. 471 of 1985(Sundar Gupta & Ors. Vs. Sita Vasudeva & Ors.) before the District Judge at Delhi on 19th May, 1985 for seeking declaration to continue to be the owners of the suit property and for injunction restraining the auction purchaser V.N. Vasudeva, predecessor of the appellants from changing the nature of theproperty. Indisputedly, Income tax authorities were not impleade
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
