M/S Rugsotic PVT. LTD. vs. Union Of INDIA And 3 Others
Held
The Court considered the submission made by the learned counsel for the Petitioner seeking permission to withdraw the writ petition. Permission was accordingly accorded. Consequently, the writ petition was dismissed as withdrawn. No costs were awarded. The interim applications filed by the Petitioner were also disposed of as closed.
Facts
M/s Rugsotic Pl4 Ltd (the Petitioner) filed a writ petition before the Telangana High Court seeking a Mandamus to declare the action of the Joint Director, Enforcement Directorate (3rd Respondent) in directing the State Bank of India (4th Respondent) to freeze the Petitioner's current bank account as arbitrary, illegal, and unconstitutional. The Petitioner also sought directions to permit them to freely operate the said bank account. The Petitioner further filed interim applications seeking permission to operate the account and to remove the debit freeze to the extent of Rs. 1 Crore for various statutory and operational payments, including GST, Income Tax, PF, and salaries.
Key Issues
1. Whether the action of the 3rd Respondent in directing the 4th Respondent to freeze the Petitioner's current bank account, as per Letter ECIR/HYZ1|21|2020 dated 04/09/2021, is arbitrary, illegal, and unconstitutional, violating the Petitioner's right to operate its business and meet its financial obligations. 2. Whether the Petitioner is entitled to directions for the free operation of its bank account, including the release of funds to meet statutory dues like GST and other essential business expenses. Petitioner's Arguments: The Petitioner contended that the freezing of their bank account by the Enforcement Directorate was arbitrary and illegal, preventing them from conducting their business operations and meeting their financial obligations, including GST payments. They sought the court's intervention to allow them to operate their account. Revenue/State's Arguments: The judgment does not record any specific arguments made by the Revenue or State respondents. The order indicates the Petitioner sought permission to withdraw the petition.
AI-generated summary — verify with the full judgment below
BHIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Originat Jurisdiction) FRIDAY, THE NINETEENTH DAY OF NOVEIMBER TWO THOUSAND AND TWENTY ONE PRESENT THE HON'BLE SRI JUSTICE B.VIJAYSEN REDDY WRIT PETITION NO.23307 0F 2021 Between: AND 1. 2. 4. M/s Rugsotic Pl4 Ltd, clN. u74999up20r7prc089429 Throuoh authorizecr Kepresentatrve Mr. Umakant Rai Having Office at. Hariyaon, CVanpur noiO, Bhadohi, Uttar Pradesh-221 40i ...PETITIONER ll,lgl-qf-F9!g,ThrolSh Principal Secretary (Rqvenue), Department of Revenue, Mrnrstry oI Ftnance, Government of lndia, New Delhi.
Enforcement _Directorate, Through Directbr, 6th Floor, Lok Nayak Bhawan, Khan Market, New Delhi-1 10 003. office of the Joint Director, Enforcement Directorate, Hyderabad Zonal office, 3rd Floor, Shakar Bhawan, Basheerbagh, Hyderabad-S00'004. state Bank of lndia, Through chief tt/aiagei, commerciar Bianch, Hail No 87-88, 2nd Floor Niryat Bhawan, Ehaooni, SiniRi',jioas NiA$ar-zzt+ot ...RESPONDENTS Petition under Article 226 of the constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue writ of Mandamus or any other appropriate writ or order or
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