East Bourne Hotels Pvt. Ltd. Vs State of Hp and Another — Himachal Pradesh HC (2025) — LawSathi Research

East Bourne Hotels Pvt. Ltd. Vs State of Hp and Another — Himachal Pradesh HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Petition allowed; any red entry in the revenue record pertaining to the petitioner set aside; respondents restrained from initiating or continuing coercive steps until the appeal is finally disposed of; appellate authority directed to decide the appeal by 30.9.2025; pending application(s), if any, disposed of.

Issue for consideration

Whether, given that the petitioner has deposited the entire tax liability (excluding interest and penalty) and its appeal is pending adjudication before the appellate authority, the respondents should be restrained from initiating or continuing coercive steps against the petitioner. +1 more

Court's answer

Since the entire tax excluding interest and penalty stands deposited by the petitioner and its appeal is pending adjudication, the respondents need to be restrained from initiating or continuing with any coercive steps against the petitioner.

Ratio / Principle

Any red entry made in the revenue record pertaining to the petitioner is ordered to be set aside.

Key takeaways

The appellate authority is directed to decide the appeal as expeditiously as possible and in any event by 30.9.2025.ratio¶¶20
Till the appeal is finally disposed of, the respondents shall not take or continue with any coercive steps against the petitioner.ratio¶¶21

Detailed headnote1 paragraphs

Writ petition (CWP No. 3350/2025, decided 6.5.2025) by East Bourne Hotels Pvt. Ltd. v. State of H.P. & ors., High Court of Himachal Pradesh (Justices Tarlok Singh Chauhan and Sushil Kukreja): the petitioner had deposited 100% of its tax liability excluding interest and penalty, and its appeal was pending adjudication before the appellate authority. Holding that coercive steps, including the red entry incorporated in the revenue record, would cause serious prejudice to the petitioner's business, the Court allowed the petition, set aside any red entry made in the revenue record, restrained the respondents from initiating or continuing any coercive steps until the appeal is finally disposed of, directed the appellate authority to decide the appeal as expeditiously as possible and in any event by 30.9.2025, and disposed of pending application(s), if any.

( 2025:HHC:12857 )

IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA

CWP No. 3350/2025 Decided on : 6.5.2025

East Bourne Hotels Pvt. Ltd. …..Petitioner

Versus

State of H.P. & ors. ….Respondents

Coram:

The Hon’ble Mr. Justice Tarlok Singh Chauhan, Judge. The Hon’ble Mr. Justice Sushil Kukreja, Judge.

Whether approved for reporting?¹ No

For the Appellant: Mr. Vishal Mohan, Sr. Advocate with Mr. Praveen Sharma, Advocate. . For the Respondents: Mr. Anup Rattan, A.G. with Mr.Ramakant Sharma, Mr. Navlesh Verma, Ms. Sharmila Patial, Mr. Sushant Kaprate, Addl. A.Gs. and Mr. Raj Negi, Dy.A.G. for respondent No.1. Mr. Neeraj Sharma & Mr. Ishaan Kashyap, Advocates, for respondent No.2.

Justice Tarlok Singh Chauhan, Judge (oral)

Learned counsel for the petitioner, on instructions, states that it has deposited 100% of tax liability excluding the interest and penalty.

1Whether reporters of the local papers may be allowed to see the judgment? Yes.

2

( 2025:HHC:12857 )

2 It is not in dispute that the appeal filed by the petitioner is pending adjudication before the appellate authority.

Therefore, in such circumstances, resorting to coercive steps that too having red entry incorporated in the revenue record at this stage would definitely cause serious prejudice to the business of the petitioner.

Given the fact that now entire tax excluding the interest and penalty stands deposited by the petitioner, we are of the considered view that the respondents need to be restrained from initiating or continuing with any coercive steps against the petitioner.

Consequently, the petition is allowed and any red entry having been made in the revenue record pertaining to the petitioner is ordered to be set aside.

The appellate authority is directed to decide the appeal as expeditiously as possible and in any event by 30.9.2025.

It is made clear that till the time, the appeal is not finally disposed of, the respondents shall not take or continue with any coercive steps against the petitioner.

Pending application, if any, also stands disposed of.

(Tarlok Singh Chauhan)

(Sushil Kukreja) Judge

6.5.2025 (pankaj)