JUDGMENT

(Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, calling for the records relating to the Letter Na.Ka.2181192/2001/02/A3 dated 26.08.2013 on the file of the first respondent herein - quash the same and consequentially direct the second respondent herein to delete the entry of encumbrance made in Document No.L.No.11/2013 on the petitioner''s property Door No.12/36 A Ramalakshmi Nagar, Goundampalayam Road, Idayarpalayam, Coimbatore – 641 044.)

1. The order dated 26.08.2013 issued by the Assistant Commissioner of Commercial Taxes is under challenge in the present writ petition.

2. The petitioner states that she has purchased a house property bearing Door No.12/36A Ramalakshmi Nagar, Goundampalayam Road, Idayarpalayam, Coimbatore-44 from one Rangarajan under Sale Deed dated 07.03.2008, which has been registered as Document No.1221 of 2008 before the Sub Registrar, Vadavalli. The petitioner had obtained all parent documents in original starting from the year 1982. Before purchasing the property, she had caused verification of the register of encumbrances maintained by the 2nd respondent and on being satisfied that there was no encumbrance on the property, the petitioner purchased the same by availing the bank loan, which was also sanctioned after the due scrutiny of all relevant documents. The petitioner states that she is the bonafide purchaser of the property, purchased for a valuable consideration. She is residing in the property with her family.

3. The vendor of the petitioner Mr.Rangarajan had obtained the property by way of settlement deed dated 13.02.2008 executed by his son Mr.Gopalakrishnan under Document No.723 of 2008. The said Gopalakrishnan derived this property from his mother Kanthimathi by way of a settlement deed dated 07.05.2004 registered as Document No.1782 of 2004. The said Kanthimathi had purchased the property on 30.09.1996 from one Mr.Krishnaraj.

4. After purchase, the petitioner came to know that the Assistant Commissioner of Commercial Taxes, Gandhipuram Circle, Coimbatore was making enquiries about the property for recovery of the alleged sales tax arrears. The petitioner enquired with the 1st respondent and requested them to provide details. The petitioner is not a sales tax assessee. She submitted a reply by stating that she came to know subsequently that her vendor Rangarajan and wife Kanthimathi and son Gopalakrishnan had formed a private limited company under the name of ''Maze net Solutions India Private Limited'' and the said Kanthimathi had given the property by way of security for the purpose of registration of the said company under the erstwhile Tamil Nadu General Sales Tax Act, 1959 [hereinafter referred to as ''the Act'']. The said Kanthimathi has signed the Form 19 B, which is a security bond executed by her for the purpose of registration of her company as contemplated under Section 21 of the Act. The said Kanthimathi has given a personal undertaking to pay the Government of Tamil Nadu the sum of Tax Fee or other amount, which occurs against her or her firm. This security bond nowhere indicates any intention of the said Kanthimathi to offer the property as security for this purpose. The Form 19 B as signed by the Kanthimathi is not in conformity with the prescribed Form as framed under the erstwhile Tamil Nadu General Sales Tax Rules, 1959 [hereinafter referred as ''Rules''].

5. The security created by the said Kanthimathi was only for the purpose of registration of the company ''Maze Net Solutions India Private Limited'' as mandated under Section 21 of the Act read with Rule 24 (15A). Thus, she never intended to mortgage the property for the purpose of security.

6. The 1st respondent after a lapse of long time, addressed a letter dated 26.08.2013 to the 2nd respondent to register the encumbrance, said to have been created by Kanthimathi under the security bond. The 2nd respondent also made an entry of encumbrance in Documen