| Case ID |
38ed3d39-a2d1-4ec3-8e1a-8e76457312d5 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The court held that the provisions of Chapter XX-C of the Income-tax Act, specifically sections 269UC and 269UL, do not apply to court auction sales. The petitioner, A. Harikrishnan, contended that the sale of immovable property by auction contravened these sections, arguing that the Central Government's option to buy the property should have been exercised. The court clarified that in a court auction, the debtor is not a willing seller and is not a party to any agreement for transfer. Therefore, the restrictions imposed by the mentioned sections cannot be enforced in this context. The court ultimately dismissed the writ petition, stating that the auction sale does not require adherence to the procedures outlined in Chapter XX-C. |
| Summary |
This case revolves around the interpretation of specific provisions of the Income-tax Act, 1961, particularly sections 269UC and 269UL, which relate to the transfer of immovable property. The petitioner, A. Harikrishnan, challenged the legality of a court auction sale on the grounds that it violated these provisions, which were designed to ensure that property valued over Rs. 10 lakhs could only be sold after an agreement for transfer was made and with the approval of the Central Government. The court ruled that these provisions do not apply to auction sales conducted by the court, as such sales do not involve a willing seller or a formal agreement. This decision underscores the legal distinction between private sales and court-ordered sales, highlighting the unique procedural requirements that govern each type of transaction. The ruling emphasizes that the rights of the decree-holder to execute a sale in court are not impeded by the provisions aimed at regulating private sales, thus ensuring that the court's auction sales can proceed without unnecessary legal hindrances. |
| Court |
Madras High Court
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| Entities Involved |
Not available
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| Judges |
Govindsamy, J.
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| Lawyers |
R. Partnasarathy,
G. Nandalal,
J. Jayaraman,
N.V. Balasubramaniam
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| Petitioners |
A. Harikrishnan
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| Respondents |
Registrar, High Court
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| Citations |
1991 SLD 2048,
(1991) 192 ITR 391
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| Other Citations |
Not available
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
269UC,
269UL
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