Hira Resorts vs. Unoin Of INDIA And Others
Facts
The petitioner, Hira Resorts, filed a writ petition before the Punjab and Haryana High Court challenging the freezing of its bank account. The petitioner contended that the freezing was contemptuous as the demand itself had been stayed by the Court in a previous writ petition (CWP-9963-2026), and any consequential recovery action would violate the Court's orders. The revenue sought time to obtain instructions. Subsequently, the revenue placed on record communications from the Assistant Commissioner, Central Goods and Services Tax, dated 15.07.2026 and 16.07.2026, directing the bank to de-freeze the petitioner's account.
Held
The Court noted that the revenue had placed on record communications from the Assistant Commissioner, Central Goods and Services Tax, dated 15.07.2026 and 16.07.2026, directing the bank to de-freeze the petitioner's bank account. The Court found that with these communications, no further grievance survived for the petitioner in the instant writ petition. Consequently, the Court disposed of the writ petition, directing that the bank account of the petitioner be de-frozen forthwith in terms of the communications issued by the Assistant Commissioner. The Court also disposed of all pending miscellaneous applications. The issue of contempt was rendered infructuous by the action of the revenue.
Key Issues
1. Whether the freezing of the petitioner's bank account constitutes contempt of court, given that the underlying demand has been stayed by this Court in CWP-9963-2026. Petitioner's Contention: The petitioner argued that freezing the bank account while the demand is stayed is a violation of the Court's previous order and amounts to contempt. They relied on the principle that any action taken in contravention of a stay order is contemptuous. Revenue's Contention: The revenue sought time to obtain instructions regarding the freezing of the bank account and the alleged contempt. Subsequently, the revenue submitted communications indicating the de-freezing of the account, thereby resolving the immediate grievance.
AI-generated summary — verify with the full judgment below
272 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ****
CWP-20762-2026 (O&M)
Date of Decision:16.07.2026 HIRA RESORTS ....PETITIONER(S) VERSUS UNION OF INDIA AND OTHERS ….RESPONDENT(S) CORAM:- HON'BLE THE ACTING CHIEF JUSTICE HON’BLE MR. JUSTICE ROHIT KAPOOR Present: Mr. Vishav Bharti Gupta, Advocate for the petitioner. Mr. Ajay Kalra, Senior Standing Counsel for the respondent-revenue. ***** ASHWANI KUMAR MISHRA, A.C.J. (Oral)
Following order was passed by this Court on 13.07.2026:- “Contention is that freezing of petitioner’s bank account is contemptuous, inasmuch as the demand itself has been stayed by this Court in CWP-9963-2026 and any consequential action of recovery would be in violation of the orders passed by this Court. Learned counsel for the revenue prays for and is allowed one week time to obtain instructions in the matter. List on 16.07.2026.”
Learned counsel for the respondent has placed before the Court communications issued by the Office of the Assistant Commissioner, Central Goods and Services Tax, Division
The judgment continues below.
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