M/S Kaka Overseas 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 by the Court. Consequently, the writ petition was dismissed as withdrawn. No costs were awarded. The pending miscellaneous petitions, if any, were also directed to stand closed. The Court did not delve into the merits of the Petitioner's challenge to the freezing of the bank account or the legality of the Enforcement Directorate's action, as the petition was withdrawn by the Petitioner.
Facts
M/s Kaka Overseas Ltd. (Petitioner) filed a writ petition before the Telangana High Court challenging the action of the Joint Director, Enforcement Directorate (3rd Respondent). The Petitioner's grievance was that the 3rd Respondent, through a letter dated 04/09/2021, directed the State Bank of India (4th Respondent) to freeze the Petitioner's current bank account. The Petitioner sought a declaration that this action was arbitrary, illegal, and unconstitutional, and requested directions to permit free operation of the account. Interlocutory applications were also filed seeking directions to allow operation of the account and to remove the debit freeze to the extent of Rs. 2.18 Crore for various statutory and operational payments.
Key Issues
1. Whether the action of the 3rd Respondent in directing the 4th Respondent to freeze the current account of the Petitioner is arbitrary, illegal, and unconstitutional, thereby violating the Petitioner's right to carry on business under Article 19(1)(g) of the Constitution of India? Contentions: Petitioner: Argued that the freezing of the bank account by the Enforcement Directorate, without providing adequate opportunity or justification, was arbitrary and illegal. The Petitioner sought to operate the account to meet its statutory obligations, including GST payments, income tax, PF contributions, and other essential business expenses, as detailed in their interlocutory applications. Respondents: The judgment does not record any specific arguments made by the Union of India (1st Respondent), Enforcement Directorate (2nd and 3rd Respondents), or State Bank of India (4th Respondent) regarding the merits of the case. The record indicates that the Petitioner sought permission to withdraw the writ petition.
AI-generated summary — verify with the full judgment below
HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE NINETEENTH DAY OF NOVEIVBER TWO THOUSAND AND TWENTY ONE PRESENT THE HON'BLE SRI JUSTICE B.VIJAYSEN REDDY Between: AND M/s Kaka Overseas Ltd, ClN. U51 101HR2006P1C036279 Through authorized Representative Mr. Umakant Rai, Having its Registered Address at. Building_339, Udyog Vihar Phase-ll, Gurgaon-'l22016 Branch Office, Hariyaon, Gyanpur Road, Bhadohi, Uttar Pradesh-221 401 ...PETITIONER
Union of lndia, Through Principal Secretary (Revenue), Department of Revenue, Ministry of Finance, Government of lndia, New Delhi
Enforc6ment Directorate, Through Director, 6th Floor, Lok Nayak Bhawan, Khan Market, New Delhi-'l 10 003
Office of the Joint Director, Enforcement Directorate, Hyderabad Zonal Office, 3rd Floor, Shakar Bhawan,.Basheerbagh, Hyderabad-500 004. 4. State Bank of lndia, Through Chief Manager, Commercial Branch, Hall No 87-88' 2nd Floor Niryat Bhawan Bhadohi, Sant Ravidas Nagar-221401' Uttar Pradesh ...RESPONDENTS Petition under Article 226 ol lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.