Delhi High Court - Orders
Smt. Sukrita Bajaj vs Sh. Sundeep@Sandeep Sehgal on 17 February, 2023
Author: Prateek Jalan
Bench: Prateek Jalan
$~12
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ EX.P. 57/2018
SMT. SUKRITA BAJAJ ..... Decree Holder
Through: Mr. Sushil Dutt Salwan, Sr. Adv. with
Mr. Aditya Garg, Advocate.
versus
SH. SUNDEEP@SANDEEP SEHGAL ..... Judgment Debtor
Through: Mr. Sandeep Sehgal, Advocate
(judgment debtor in person).
Mr. Ashish Aggarwal, Mr. Nischay
Kapoor, Ms. Aastha Kaushal,
Advocates for Auction Purchaser.
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 17.02.2023 REVIEW PET. 38/2023
1. Further to the order dated 07.02.2023, Mr. Sandeep Sehgal, the judgment debtor appears in person through video conference. Mr. Sehgal is himself an Advocate and states that he has no objection to the relief sought in the review petition.
2. The case of the review petitioner- decree-holders, is that the amount of Tax Deducted at Source ["TDS"] would have to be deposited by the auction purchaser to the credit of the judgment debtor from whom the property is to be transferred to the auction purchaser. Mr. Sushil Dutt Salwan, learned Senior Counsel for the decree-holders, submits that the direction in the order under review to the effect that the amount would be Signature Not Verified Digitally Signed By:SHITU NAGPAL EX.P. 57/2018 Page 1 of 4 Signing Date:20.02.2023 18:17:08 deposited to the credit of the decree-holders is an error apparent on the face of the record, occasioned by a failure to consider the terms of Section 194 IA of the Income Tax Act, 1961.
3. The contention appears to be correct, inasmuch as the transfer of the property is effectively from the judgment debtor to the auction purchaser, and the sale proceeds are being used to discharge his debts to the decree- holders.
4. Order dated 20.12.2022 is therefore reviewed, with the consent of the parties, and paragraph Nos. 4 and 5 thereof will read as follows:
"4. Having regard to these orders, it is agreed by Mr. Ashish Aggarwal, learned counsel for the auction purchaser in the present case, and Ms. Sonali Malhotra, learned counsel for the decree holder, that the auction purchaser will withdraw the amount of ₹4,75,000/- (which has been separately deposited in this Court) from the Registry and deposit the same with the Income Tax authorities to the credit of the judgment debtor.
5. As the decretal dues are in excess of the entire sale proceeds, it appears to me that this course of action will obviate any complication in the facts and circumstances of the case. It is, therefore, directed that the auction purchaser may withdraw the amount of ₹4,75,000/- from the Registry of the Court, deposit the same with the Income Tax authorities by way of TDS on the amount paid for the purchase of the auction property, and issue a TDS certificate in favour of the judgment debtor in respect of the said amount. The challan with regard to the deposit of the aforesaid amount and the TDS certificate in favour of the judgment debtor will be brought to Court by Mr. Aggarwal on the next date of hearing."
5. The review petition stands disposed of in these terms.
EX.APPL.(OS) 3731/2022 In terms of the aforesaid order in REVIEW PET. 38/2023, demand draft No. 962166 of ₹4.75 lakhs deposited by the auction purchaser (towards TDS) be returned to him by the Cash branch for further steps in terms thereof. The application stands disposed of in these terms.
Signature Not Verified Digitally Signed By:SHITU NAGPAL EX.P. 57/2018 Page 2 of 4 Signing Date:20.02.2023 18:17:08EX.APPL.OS) 252/2022 Mr. Salwan states that no further orders are required in this application.
The application stands disposed of.
EX.APPL.(OS) 954/2021 (for early hearing) This is an application for early hearing has been rendered infructuous. The application stands disposed of as infructuous. EX.APPL.(OS) 501/2021 The application has been rendered infructuous in view of earlier orders passed in the petition.
The application stands disposed of.
EX.APPL.(OS) 944/2020 There is no appearance on behalf of the applicant. The application is dismissed for default.
EX.P. 57/20181. Half undivided share in the property in question (basement, ground floor and third Floor with terrace of property bearing No. S-87, Greater Kailash-II, New Delhi-110048) ["the property"], was sold by public auction pursuant to order dated 29.10.2021. The entire amount has been deposited by the auction purchaser with the Registry of this Court. Directions have been passed today for withdrawal of one per cent of the amount, being ₹4.75 lakhs, to be deposited with the Income Tax authorities by way of TDS to the credit of the account of judgment debtor viz. Mr. Sandeep Sehgal [PAN:
ABAPS6492D].
2. There is no objection to confirmation of the sale in favour of the auction purchaser. The sale is confirmed and the Registry is directed to issue Signature Not Verified Digitally Signed By:SHITU NAGPAL EX.P. 57/2018 Page 3 of 4 Signing Date:20.02.2023 18:17:08 the sale certificate and to have the same registered in accordance with law, subject to the auction purchaser complying with the directions made today with regard to deposit of TDS.
3. The Registry is further directed to compute the amount due to the decree-holders until 28.02.2023 in terms of the decree dated 13.04.2018 and place the computation on record.
4. Learned Joint Registrar may release the decretal amount to the decree- holders out of the sale proceeds deposited by the auction purchaser. In the event any balance remains from the sale proceeds, the same may be released to the judgment debtor.
5. List before the learned Joint Registrar on 14.03.2023 for compliance.
6. List before the Court on 22.03.2023.
PRATEEK JALAN, J FEBRUARY 17, 2023 'Bhupi' Signature Not Verified Digitally Signed By:SHITU NAGPAL EX.P. 57/2018 Page 4 of 4 Signing Date:20.02.2023 18:17:08