M/S Royal Carpet International vs. Union Of INDIA
Held
The Court did not decide on the merits of the case. The learned counsel for the petitioner sought permission to withdraw the writ petition, and this permission was accorded by the Court. Consequently, the writ petition was dismissed as withdrawn. No costs were awarded. The Court also noted that pending miscellaneous petitions, if any, would stand closed. The specific provisions of the GST Act or other relevant statutes that might have been applicable to the underlying dispute were not discussed or decided upon by the Court due to the withdrawal of the petition.
Facts
M/s Royal Carpet International, the petitioner, through its authorized representative, filed a writ petition challenging the action of the Joint Director, Enforcement Directorate (3rd Respondent). The Enforcement Directorate had directed the State Bank of India (4th Respondent) to freeze the petitioner's current bank account. The petitioner sought a writ of mandamus to declare this action arbitrary, illegal, and unconstitutional, and to direct the respondents to allow free operation of the bank account. Interim applications were also filed seeking directions to permit the petitioner to operate the account and to unfreeze a portion of the account to meet statutory and operational expenses, including GST payments, advance income tax, salaries, and other essential payments.
Key Issues
1. Whether the action of the 3rd Respondent in directing the 4th Respondent to freeze the petitioner's current bank account, purportedly under the Prevention of Money Laundering Act, 2002, is arbitrary, illegal, and unconstitutional, violating the petitioner's right to conduct business and meet its financial obligations? Petitioner's Contention: The petitioner argued that the freezing of the bank account was arbitrary and illegal, preventing them from operating their business and meeting essential expenses such as GST payments, salaries, and statutory dues. They sought the unfreezing of the account. Revenue/State's Contention: The judgment does not record any specific arguments presented by the Revenue or State respondents regarding the merits of the freezing order or the petitioner's claims. The primary action recorded is the petitioner's request to withdraw the 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 NOVEMBER TWO THOUSAND AND TWENTY ONE PRESENT THE HON'BLE SRI JUSTICE B.VIJAYSEN REDDY WRIT PETITIoN NO. 235520F 2021 Betwee n: AND M/s Royal Carpet lnternational, Through its Proprietor, Shri Yadavendra Kumar Roy, Rep by authorized Representative Mr. Umakant Rai, Musilatpur, Musi, Bhadohi, Uttar Pradesh-221 401 ,.,PETITIONER 'l . Union of lndia, Through Principal Secretary (Revenue), Department of Revenue, Ministry of Finance, Government of lndia, New Delhi
Enforcement Directorate, Through Director, 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-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 ...RESPONDENTS Petition under Article 226 ot the Constitution of India 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 ord
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