K.Venkateshwara Raja vs. The Assistant Commissioner
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The petitioner, K. Venkateshwara Raja, sought a writ of mandamus to direct the Sub Registrar (second respondent) to delete an entry in the Encumbrance Certificate pertaining to tax dues. The petitioner acquired property through settlement deeds registered in 2021. Upon seeking an Encumbrance Certificate for a loan, he discovered an entry indicating an attachment related to tax dues. The petitioner claimed no personal liability for these dues. The Assistant Commissioner, State Goods and Services Tax Department (first respondent), had attached properties for alleged arrears of tax from the petitioner's father and donor, Kanagaraj. The attachment included properties in Survey Numbers 951/2A, 954/2A2, and 974/2B, Palani Village. The petitioner's property is in Survey No. 75/2. The petitioner represented to the authorities on 24.10.2024.
Held
The Court held that the entry in the Encumbrance Certificate with respect to Survey No. 75/2 was erroneous. The reasoning was based on the submission made by the second respondent, on instructions, that the entry was indeed incorrect. The Court recorded this statement. The ratio decidendi is that if an encumbrance entry is demonstrably erroneous and does not pertain to the current property owner's liabilities, it should be rectified. The operative direction was for the second respondent to confine the entries in the Encumbrance Certificate relating to the attachment by the first respondent solely to the properties situated in Survey Numbers 951/2A, 954/2A2, and 974/2B, Palani Village. All entries made with respect to other survey numbers, specifically Survey No. 75/2, were ordered to stand deleted. The writ petition was allowed.
Key Issues
1. Whether the entry in the Encumbrance Certificate reflecting tax dues and attachment, which pertains to the petitioner's property (Survey No. 75/2), is erroneous and should be deleted, considering the petitioner's claim of no personal liability for the tax arrears owed by his donor (Kanagaraj)? Petitioner's contention: The petitioner argued that he has no personal connection or liability with the tax dues for which the property was attached by the first respondent. He contended that the attachment entry on his property is incorrect and sought its deletion. He relied on his representation dated 24.10.2024. Revenue/State's contention: The first respondent, through the second respondent, reported that the attachment was made for alleged arrears of tax dues from the petitioner's father and donor, Kanagaraj. The second respondent, on instructions, stated that the entry with respect to Survey No. 75/2 is erroneous and will be deleted.
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Cause title — parties, addresses and appearances
O R D E R By the consent of both sides, this writ petition is taken up for final disposal at the admission stage itself.
The petitioner seeks writ of mandamus to direct the second respondent to remove certain entries in the Encumbrance Certificate regarding tax dues with respect to the property situated in Survey No. 75/2, Ward No.3, Block No.26, Sivagiripatti Village, Palani Taluk, Dindigul District.
The petitioner claims to have obtained the property by way of a settlement deed from one Kanagaraj and Rajathi @ Murugathammal. The deeds were registered in Document No.1212/2021 dated 29.06.2021 and Document No.277/2021 dated 08.02.2021 respectively. In order to https://www.mhc.tn.gov.in/judis avail a loan, it became necessary for the petitioner to obtain Encumbrance Certificate from the second respondent. At that time, he came to know that an entry had been made in the Encumbrance Certificate as follows: "tup epYit - cjtp Mizau; (kh, t), ngupahTilahu; Nfhapy; gpupT, Nfhijkq;fyk; mQ;ry;, godp mtu;fspd; e.f.vz;: 835/2022/m3, ehs;: 20/02/2023 Mizapd;gb gjpTf;Fj; jil"
Pleading that he has absolutely nothing to do with the first respondent, he has come forward with this writ petition.
Heard Mr.Selvam, learned counsel for the petitioner, Mr.R.Suresh Kumar, learned Additional Government Pleader for the first respondent and Mr.P.T.Thiraviyam, learned Government Advocate for the second respondent. https://www.mhc.tn.gov.in/judis
When the matter came up for admission on 03.02.2025, I requested Mr.P.T.Thiraviyam, to get instructions from the Sub Registrar as to how the attachment has reflected over the property when it is the vehement plea of Mr.Selvam that the petitioner has no proceedings pending with the first respondent.
Mr.P.T.Thiraviyam reported to this Court on 05.02.2025, that the first respondent had attached the property situated in S.Nos.951/2A, 954/2A2 and 974/2B, Palani Village, Dindigul District for alleged arrears of tax dues from the father and donor of the property to the petitioner, namely, Kanagaraj.
Today, on instructions, Mr.P.T.Thiraviyam, reports that the entry with respect to Survey No.75/2 is erroneous and that it will be deleted. The statement of Mr.P.T.Thiraviyam is recorded.
There shall be a direction to the second respondent to confine the entries in the Encumbrance Certificate relating to attachment by the https://www.mhc.tn.gov.in/judis first respondent over the properties situated in S.Nos.951/2A, 954/2A2 and 974/2B, Palani Village, Dindigul District alone. The entries made with respect to the other survey numbers shall stand deleted. The writ petition is ordered. No costs. 06.02.2025 NCC:Yes/No Index:Yes/No Speaking/Non-speaking order mbi To 1.The Assistant Commissioner, State Goods and Services Tax Department, Periya Udayar Koil Division, Kothaimangalam Post, Palani, Dindigul District. 2.The Sub Registrar, Palani Joint 1 Sub Registration Office, Palani, Dindigul District. https://www.mhc.tn.gov.in/judis V.LAKSHMINARAYANAN, J. mbi
2025 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.