Karnataka High Court
Sbicap Trustee Company Ltd vs Tax Recovery Officer on 6 July, 2017
Author: Vineet Kothari
Bench: Vineet Kothari
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 06TH DAY OF JULY, 2017
BEFORE
THE HON'BLE Dr.JUSTICE VINEET KOTHARI
WP Nos.19725/2014 & WP.Nos.30764-30776/2014
C/W WP.No.19727/2014 &
WP.Nos.30777-30789/2014 (T-IT)
IN WP Nos.19725/2014 & WP.Nos.30764-30776/2014 (T-IT)
Between:
1. SBICAP Trustee Company Ltd.
6th Floor, Apeejay House
Dinshaw Wachha Road
Churchgate, Mumbai - 400 020
Represented by Authorized Officer
Mr. Lakshminarayana Rao
2. State Bank of India
A Banking corporation constituted
Under the State Bank of India Act,
1955 (23 of 1955)
Having its Corporate Centre at
State Bank Bhavan
Madame Cama Road
Nariman Point
Mumbai - 400 021
And having its Industrial
Finance Branch at 61
Residency Plaza
Residency Road
Bengaluru - 580 025
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
2/16
3. Axis Bank Limited
A Company incorporated under the
Companies Act, 1956 and
A banking company within the
Meaning of Section 5(c) of the
Banking Regulation Act, 1949 and
Having its registered office at
Trishul, Third Floor
Opp. Samartheswar Temple
Law Garden, Ellisbridge
Ahmedabad 380 006
Gujarat, India
And having its corporate office at
Axis House, C-2, Wadia International Centre
Pandurang Budhkar Marg
Worli, Mumbai - 400 025
4. Bank of Baroda
A body corporate under the
Banking Companies (Acquisition and
Transfer of Undertaking) Act, 1970
(5 of 1970)
Having its head office at
Baroda House
P.B.No.506, Mandavi
Vadodara - 396 006
Acting through its Branch
Office at P.O.Box 11745
Samata Building
General Bhosale Marg
Nariman Point, Mumbai -400 021
5. M/s J.M.Financial Asset
Reconstruction Co. Pvt. Ltd.
Having its registered office at
7th Floor, Cnergy
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
3/16
Appasaheb Marathe Marg
Prabhadevi, Mumbai - 400 025
6. Corporation Bank
A body corporate under
Banking Companies (Acquisition and
Transfer of Undertaking) Act, 1980
(40 of 1980) Having its
Corporate office at
Mangaladevi Temple Road
Pandeshwar, Mangalore - 575 001
And having its Industrial Finance Branch
at Rallaram Memorial Bldg.
1st Floor, CSI Compound
Mission Road, Bengaluru - 560 027
7. The Federal Bank Limited
A Company within the
Meaning of the Companies Act, 1956
Having its registered office at Federal Towers
Aluva - 683 101, Kerala
And having its branch office at
St. Marks Road, 9
Halcyon Complex
St. Marks Road
Bengaluru - 560 001
8. IDBI Bank Limited
A company incorporated
Under the Companies Act, 1956 and
A banking company within the
Meaning of the Banking Regulation
Act, 1949, having its head office at
IDBI Tower, WTC Complex
Cuffe Parade, Mumbai - 400 005
Maharashtra, India
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
4/16
And acting through its branch
Office at Corporate Banking
Group-FAMG
9th Floor, IDBI Tower
WTC Complex, Cuffe Parade,
Colaba, Mumbai - 400 005
9. Indian Overseas Bank
A body corporate under the
Banking Companies (Acquisition
And Transfer of Undertaking) Act, 1970
Having its central office at
763, Anna Salai
Chennai - 600 002
And its branch office at
'Harikripa', 26-A, S.V.Road
Santacruz (W), Mumbai-400 054
10.Punjab & Sind Bank
A body corporate under
Banking Companies (Acquisition and
Transfer of undertaking) Act, 1980
Having its Head Office at 21
Rajendra Place, New Delhi - 110 008
And having amongst others
A branch office at
J.K.Somani Building
British Hotel Lane
Fort, Mumbai - 400 023
11.Punjab National Bank
A body corporate under the
Banking Companies
(Acquisition and Transfer of
Undertaking) Act, 1970 (5 of 1970)
Having its head office at 7
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
5/16
Bhikaji Cama Place
New Delhi - 110 607
Acting through its large
corporate Branch at
Centenary Building, 28,
M.G.Road, Bengaluru - 560 001
12.State Bank of Mysore
A body corporate constituted
Under the State Bank of India
(Subsidiary Banks) Act, 1959
Having its head office at
Kempe Gowda Road
Bengaluru - 560 009
And its corporate Accounts Branch
At No.18, Ramanashree Arcade
M.G.Road, Bengaluru - 560 001
13.UCO Bank
A body corporate constituted
Under the Banking Companies
(Acquisition and Transfer of
Undertakings) Act, 1970 and having
Its head office at 10
BTM Sarani, Kolkata - 700 001
West Bengal, India
And its Branch office at
1st Floor, 13/22, K.G.Road
Bengaluru - 560 009
14.United Bank of India
A body corporate under the
Banking Companies (Acquisition and
Transfer of undertakings) Act, 1970
(5 of 1970) having its head office at
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
6/16
11, Hemanta Basu Sarani
Kolkata - 700 001
Acting through its branch office
At 40, K.G.Road, Bengaluru - 560 009
Petitioner Nos.2 to 14
Represented by:
Mr. S. Ranga Vittal
Aged 50 years
S/o Mr. C.N. Srinivasan
Assistant General Manager
& Relationship Manager -
AMT IV (SMG-V)
State Bank of India
Having its Industrial
Finance Branch at 61
Residency plaza
Residency Road
Bengaluru - 560 025 ...Petitioners
(By Sri Aniketh B.C., Advocate for
Sri Ganapathi Hegde, Advocate)
And
1. Tax Recovery Officer
Office of the Tax Recovery Officer
Range 18, 4th Floor, No.59
HMT Bhavan, Bellary Road
Bengaluru - 560 032
2. Deputy Commissioner of Income Tax
Circle 16(2), HMT Bhavan
Bellary Road, Bengaluru - 560 032
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
7/16
3. Assistant Commissioner of Income Tax(TDS)
HMT Bhavan, Bellary Road,
Bengaluru - 560 032
4. Commissioner of Income Tax
Office of the Commissioner of Income Tax
4th Floor, HMT Bhavan
No.59, Bellary Road, Bengaluru - 560 032
5. Union of India
Department of Revenue
Ministry of Finance
Government of India
New Delhi - 110 001
6. Kingfisher Airlines Limited
A public limited company
Incorporated under the
Companies Act, 1956 &
Having its registered office at
UB Tower, Level 12
UB City, 24, Vittal Mallya Road
Bengaluru - 560 001 ...Respondents
(By Sri K.V.Aravind, Advocate for R1 to R5 &
Sri Rajesh D.M., Advocate for R6)
These writ petitions are filed under Articles 226 and 227
of the Constitution of India praying to i) declare that the
petitioners have first charge and priority over the assets of the
Respondent No.6 secured with the petitioners as against the
claims made by respondent Nos.1 to 5 against the respondent
No.6, ii) quash the notice dated 18.02.2013 at Annexure-A and
all proceedings in relation to the same initiated by the R1 to 5,
iii) quash the notice dated 01.03.2013 at Annexure-B and all
proceedings in relation to the same, initiated by the R1 to 5, iv)
direct permanently restraining the R1 to 5 from in any manner
taking any steps and or proceedings in furtherance or in
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
8/16
implementation of the notice dated 18.02.2013 at Annexure-A,
v) direct permanently restraining the R1 to 5 from in any
manner taking any steps and or proceedings in furtherance or in
implementation of the notice dated 01.03.2013 at Annexure-B
and vi) direct the R1 to 5 to not compel the petitioners to remit
the amounts in the various accounts of the R6 held in the
petitioner No.2 bank and/or any amounts due from the
petitioners to R6 or held by the petitioners for or on account of
the R6, etc.
IN WP.No.19727/2014 & WP.Nos.30777-30789/2014 (T-IT)
Between:
1. SBICAP Trustee Company Ltd.
6th Floor, Apeejay House
Dinshaw Wachha Road
Churchgate, Mumbai - 400 020
Represented by Authorized Officer
Mr. Lakshminarayana Rao
2. State Bank of India
A Banking corporation constituted
Under the State Bank of India Act,
1955 (23 of 1955)
Having its Corporate Centre at
State Bank Bhavan
Madame Cama Road
Nariman Point, Mumbai - 400 021
And having its Industrial
Finance Branch at 61
Residency Plaza
Residency Road
Bengaluru 580 025
3. Axis Bank Limited
A Company incorporated under the
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
9/16
Companies Act, 1956 and
A banking company within the
Meaning of Section 5(c) of the
Banking Regulation Act, 1949 and
Having its registered office at
Trishul, Third Floor
Opp. Samartheswar Temple
Law Garden, Ellisbridge
Ahmedabad 380 006
Gujarat, India
And having its corporate office at
Axis House, C-2, Wadia International Centre
Pandurang Budhkar Marg
Worli, Mumbai - 400 025
4. Bank of Baroda
A body corporate under the
Banking Companies (Acquisition and
Transfer of Undertaking) Act, 1970
(5 of 1970)
Having its head office at
Baroda House
P.B.No.506, Mandavi
Vadodara - 396 006
Acting through its Branch
Office at P.O.Box 11745
Samata Building
General Bhosale Marg
Nariman Point, Mumbai - 400 021
5. M/s J.M. Financial Asset
Reconstruction Co. Pvt. Ltd.
Having its registered office at
7th Floor, Cnergy
Appasaheb Marathe Marg
Prabhadevi, Mumbai - 400 025
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
10/16
6. Corporation Bank
A body corporate under
Banking Companies (Acquisition and
Transfer of Undertaking) Act, 1980
(40 of 1980) Having its
Corporate office at
Mangaladevi Temple Road
Pandeshwar, Mangalore - 575 001
And having its Industrial Finance Branch
at Rallaram Memorial Bldg.
1st Floor, CSI Compound
Mission Road, Bengaluru - 560 027
7. The Federal Bank Limited
A Company within the
Meaning of the Companies Act, 1956
Having its registered office at Federal Towers
Aluva - 683 101, Kerala
And having its branch office at
St. Marks Road, 9
Halcyon Complex
St. Marks Road
Bengaluru - 560 001
8. IDBI Bank Limited
A company incorporated
Under the Companies Act, 1956 and
A banking company within the
Meaning of the Banking Regulation
Act, 1949, having its head office at
IDBI Tower, WTC Complex
Cuffe Parade, Mumbai - 400 005
Maharashtra, India
And acting through its branch
Office at Corporate Banking
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
11/16
Group-FAMG
9th Floor, IDBI Tower
WTC Complex, Cuffe Parade,
Colaba, Mumbai - 400 005
9. Indian Overseas Bank
A body corporate under the
Banking Companies (Acquisition
And Transfer of Undertaking) Act, 1970
Having its central office at
763, Anna Salai
Chennai - 600 002
And its branch office at
'Harikripa', 26-A, S.V.Road
Santacruz (W), Mumbai-400 054
10.Punjab & Sind Bank
A body corporate under
Banking Companies (Acquisition and
Transfer of undertaking) Act, 1980
Having its Head Office at 21
Rajendra Place, New Delhi - 110 008
And having amongst others
A branch office at
J.K.Somani Building
British Hotel Lane
Fort, Mumbai - 400 023
11.Punjab National Bank
A body corporate under the
Banking Companies
(Acquisition and Transfer of
Undertaking) Act, 1970 (5 of 1970)
Having its head office at 7
Bhikaji Cama Place
New Delhi - 110 607
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
12/16
Acting through its large
corporate Branch at
Centenary Building, 28,
M.G.Road, Bengaluru - 560 001
12.State Bank of Mysore
A body corporate constituted
Under the State Bank of India
(Subsidiary Banks) Act, 1959
Having its head office at
Kempe Gowda Road
Bengaluru - 560 009
And its corporate Accounts Branch
At No.18, Ramanashree Arcade
M.G.Road, Bengaluru - 560 001
13.UCO Bank
A body corporate constituted
Under the Banking Companies
(Acquisition and Transfer of
Undertakings) Act, 1970 and having
Its head office at 10
BTM Sarani, Kolkata - 700 001
West Bengal, India
And its Branch office at
1st Floor, 13/22, K.G.Road
Bengaluru - 560 009
14.United Bank of India
A body corporate under the
Banking Companies (Acquisition and
Transfer of undertakings) Act, 1970
(5 of 1970) having its head office at
11, Hemanta Basu Sarani
Kolkata - 700 001
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
13/16
Acting through its branch office
At 40, K.G.Road, Bengaluru - 560 009
Petitioner Nos.2 to 14
Represented by:
Mr. S. Ranga Vittal
Aged 50 years
S/o Mr. C.N. Srinivasan
Assistant General Manager
& Relationship Manager -
AMT IV (SMG-V)
State Bank of India
Having its Industrial
Finance Branch at 61
Residency plaza
Residency Road
Bengaluru - 560 025 ...Petitioners
(By Sri Aniketh B.C., Advocate for
Sri Ganapathi Hegde, Advocate)
And
1. Assistant Commissioner of Service Tax
Division III, having office
At 2nd Floor, Madhu Industrial Estate
PB Marg, Worli, Mumbai - 400 013
2. Deputy Commissioner of Service Tax
Having office at 2nd floor
Madhu Industrial Estate
PB Marg, Worli, Mumbai - 400 013
3. Additional Commissioner of Service Tax
At 2nd Floor, Madhu Industrial Estate
Worli, Mumbai - 400 013
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
14/16
4. Commissioner of Service Tax
16/1, Service Tax Commissionerate
S P Complex Lalbagh Road
Bengaluru - 560 027
5. Union of India
Department of Revenue
Ministry of Finance
Government of India
New Delhi - 110 001
Represented by the Secretary
6. Kingfisher Airlines Limited
A public limited company
Incorporated under the
Companies Act, 1956 &
Having its registered office at
UB Tower, Level 12, UB City,
24, Vittal Mallya Road
Bengaluru - 560 001
Represented by its
Managing Director
7. MESCO Aero Space Ltd.,
D-12, Freedom Fighters Enclave
Neb Sarai, New Delhi - 110 068
Represented by its
Chief Operating Officer
Mr. Manoj Pandey ...Respondents
(By Sri Jeevan J Neeralgi, Advocate for R1 to R5,
Sri Rajesh D.M., Advocate for R6 &
Sri Ravishankar for M/s Anup S.Shah Law Firm, Adv. for R7)
These writ petitions are filed under Articles 226 and 227
of the Constitution of India praying to i) declare that the
petitioners have first charge and priority over the assets of the
Respondent No.6 secured with the petitioners as against the
claims made by respondent Nos.1 to 5 against the respondent
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
15/16
No.6, ii) quash the notice dated 06.06.2012 at Annexure-A and
all proceedings in relation to the same initiated by the R1 to 5,
iii) quash the notice dated 13.07.2012 along with attachment
order at Annexure-B and all proceedings in relation to the same,
initiated by the R1 to 5, iv) quash the notice dated 26.07.2013
at Annexure-C and all proceedings in relation to the same,
initiated by the R1 to 5, v) quash the notice dated 10.02.2014
at Annexure-D and all proceedings in relation to the same
initiated by the R1 to 5, vi) quash the notice dated 13.03.2014
at Annexure-E and all proceedings in relation to the same,
initiated by the R1 to 5, vii) quash the order dated 09.01.2014
passed by the R4 and forwarded to the petitioner No.2 vide
letter dated 30.01.2014 issued by R3 at Annexure-F (COLLY)
and all proceedings in relation to the same, initiated by R-1 to 5,
viii) direct permanently restraining the R1 to 5 from in any
manner taking any steps and or proceedings in furtherance or of
implementation of the notice dated 06.06.2012 at Annexure-A,
ix) direct permanently restraining the R1 to 5 from in any
manner taking any steps and or proceedings in furtherance or in
implementation of the notice dated 13.07.2012 at Annexure-B
(COLLY), x) direct permanently restraining the R1 to 5 from in
any manner taking any steps and or proceedings in furtherance
or in implementation of the notice dated 26.07.2013 at
Annexure-C, xi) direct permanently restraining the R1 to 5 from
in manner taking any steps and or proceedings in furtherance or
in implementation of the notice dated 10.02.2014 vide
Annexure-D, xii) direct permanently restraining the R1 to 5 from
in any manner taking any steps and or proceedings in
furtherance or in implementation of the notice dated 13.03.2014
at Annexure-E & xiii) direct permanently restraining the R1 to 5
from in any manner taking any steps and or proceedings in
furtherance or in implementation of the order dated 09.01.2014
passed by the R4 and forwarded to the petitioner No.2 vide
letter dated 30.01.2014 issued by R3 at Annexure-F (COLLY)
and all proceedings in relation to the same initiated by R1 to 5.
These petitions coming on for Orders this day, the Court
made the following:
Date of order : 06.07.2017 in WP No.19725/2014
& WP Nos.30764-776/2014 c/w
WP No.19727/2014 and WP Nos.30777-789/2014
SBICAP Trustee Company Ltd and Ors.
Vs
Tax Recovery Officer and Ors.
16/16
ORDER
Mr. Aniketh B.C., Adv. for Mr. Ganapathi Hegde, Advocate for petitioners, Mr. Ravishankar for M/s Anup S Shah Law Firm, Advocate for R7
1. In view of the winding up order with regard to the respondent No.6 - Kingfisher Airlines Limited already passed by this Court on 18.11.2016, nothing survives in these writ petitions. The same are dismissed with liberty to the petitioners and impleading applicants to approach the Official Liquidator for settlement of their dues in accordance with law.
2. In view of the dismissal of the writ petitions, I.A.No.2/2017 in WP No.19727/2014 and WP Nos.30777- 789/2014 also do not survive for consideration. Accordingly, I.A.No.2/2017 in WP No.19727/2014 and WP Nos.30777-789/2014 stand disposed of.
Sd/-
JUDGE Kmv/dn L-3/Sl.No.1