JUDGMENT

SANJEEV NARULA, J. (Oral):

1. The Petitioner, Mr. Amit Arora, claims rightful ownership of the property located at D-240, 3rd Floor, Defence Colony, New Delhi – 1100241. He contends that the Respondents have arbitrarily and without sanction of law attached and sealed the Subject Property, wrongly identifying it as the registered office of Popular Spirits LLP—a firm with

1 “Subject Property”

which the Petitioner asserts he has no affiliation. He argues that the warrant of attachment dated 25th January, 2023, is wrongly founded on the recovery certificate dated 4th October, 2022 and notice dated 15th December, 2022, which are both associated with Popular Spirits LLP. Accordingly, the Petitioner seeks judicial intervention under Article 226 of the Constitution of India, 1950, to seek quashing of the impugned notices and directions for the Respondents to de-seal the Subject Property.

2. The factual backdrop leading to filing of the instant petition is summarised hereunder:

2.1. Popular Spirits LLP was issued a license bearing No. L7Z/2021/05910 in Zone 30 for retail vend of Indian and Foreign liquor in the National Capital Territory (NCT) of Delhi under Tender ID 2021_EXC_204932_30 published on 28th June, 2021, at an annual license fee of INR 262 crores.

2.2. As per the records of the Excise Department, Popular Spirits is a Limited Liability Partnership (LLP) Firm under the Limited Liability Partnership Act, 2008. Mr. Sahil Arora and Mr. Bhuvnesh Kumar are its partners. In the bid documents, Mr. Sahil Arora furnished the address of Popular Spirits LLP as D-240, 3rd Floor, Defence Colony, New Delhi-

110024, i.e. the Subject Property.

2.3. Popular Spirits LLP did not pay the license fee for the month of July 2022, which resulted in the Delhi Excise Department initiating action under Section 29(2) of the Delhi Excise Act, 2009. According to the Excise Department, an amount of INR 9,82,88,771/- is due and payable by Popular Spirits LLP.

2.4. Following the issuance of recovery certificate dated 4th October, 2022, bearing No. F.No.ZONE-30/L-72/EX/IMFL/2021-22/3443-44/4117, the Sub-Divisional Magistrate2 (Defence Colony), through Deputy Magistrate (South East), was requested to take all steps for realisation of government dues from Popular Spirits LLP, as arrears of land revenue, and make the same available to the Excise Department.

2.5. On the basis of this recovery certificate, the SDM (Defence Colony) issued notice on 15th December, 2022 to Popular Spirits LLP with a direction to deposit the due amounts within thirty days or to file an affidavit of assets. The notice was served through field staff as well as through the SHO, Defence Colony Police Station. In response to the said notice, the defaulter, Mr. Sahil Arora, filed a reply before the Assistant Commissioner (Excise), which is extracted as follows:

2.6. Subsequently, another letter dated 3rd January, 2023, was received by the SDM from the Assistant Commissioner (Excise) with a direction to realise the pending government dues from the defaulters. Accordingly, the SDM issued the impugned warrant of attachment dated 25th January, 2023. 3. In the aforenoted background, Mr. Ashim Vaccher, counsel representing the Petitioner, has advanced the following submissions to argue that the orders for sealing the Subject Property are without jurisdiction, 2 “SDM”

unreasonable and arbitrary, and therefore are liable to be set aside:

3.1. The Petitioner is the lawful owner and titleholder of the Subject Property, which was transferred to the Petitioner vide sale deed dated 21st August, 2014 executed by the Petitioner with Mr. Ashok Chawla and Mr. Lalit Chawla (erstwhile owners of the Subject Property). The copy of the said sale deed executed in the name of Mr. Amit Arora has been presented to the Court and a copy thereof is filed as Annexure P-1 to the petition.

3.2. By virtue of a mutual understanding, the Petitioner had leased out the Subject Property to Popular Spirits LLP in the year 2018 for us