P.Senthilkumar vs. The Managing Director

Facts

The petitioner, P. Senthil Kumar, filed a writ petition seeking a mandamus directing the respondents, particularly the District Manager/Deputy Collector of TASMAC, Thanjavur, not to initiate recovery proceedings for an alleged deficit stock amount. The recovery sought was for a sum of Rs. 3,63,240/- towards penalty, 24% interest, and GST, based on a show cause notice dated 21.05.2020. The petitioner contended that such proceedings should not be initiated without a proper enquiry, especially in light of his explanation dated 18.07.2020. The respondents are officials of Tamil Nadu State Marketing Corporation Limited (TASMAC).

Held

The Court recorded the submission made by the learned Counsel for the respondents that the penalty amount has been paid by the petitioner. Based on this submission, the Court found that the matter had become infructuous. Consequently, the writ petition was dismissed as infructuous. No costs were awarded. The connected miscellaneous petition was also dismissed.

Key Issues

1. Whether the respondents can initiate recovery proceedings for penalty, interest, and GST amounting to Rs. 3,63,240/- based on an alleged deficit stock of Rs. 5,70,060/- without conducting a proper enquiry as contemplated under law, in light of the petitioner's explanation dated 18.07.2020? Petitioner's contention: The petitioner argued that recovery proceedings for the stated amounts should not be initiated without a proper enquiry, as mandated by law, and that his explanation should be considered. The petitioner sought a writ of mandamus to prevent such recovery. Respondents' contention: The learned Counsel for the respondents submitted that the penalty amount has been paid by the petitioner, rendering the matter infructuous.