Allowed

The Official Assignee v. a.Ghouse Basha

Madras HC12 Dec 2017APPLN/150/2017

Case brief

AI extract

What is this about?

The court directed the Official Assignee to discharge the income tax liability of a non-insolvent co-sharer arising from the sale proceeds utilized to pay the insolvent's debts, acting on her conditional consent.

What did the court decide?

The Official Assignee is directed to discharge the tax liability arising out of the sale of the 50% share of the 3rd respondent for Assessment Year 2015-2016.

The Official Assignee Vs a.Ghouse Basha — Insolvency and Bankruptcy | Madras HC (2017)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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(IN INSOLVENCY)

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TUESDAY, THE 12th DAY OF DECEMBER 2017

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THE HON'BLE MR.JUSTICE R.SUBRAMANIAN

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APPLN. No.150 of 2017 in IP. No.117 of 2010

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In the matter of the Presidency Towns Insolvency Act, III of 1909 and In the matter of A. Ghouse Basha ... Debtor IP NO. 117 of 2010 A. Ghouse Basha S/o. A. Abdul Munnaff residing at No.8, Dooming Lane Santhome, Chennai – 600 004. ... Petitioner

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Appln. No.150 of 2017

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The Official Assignee High Court, Madras ... Applicant -VS1.A.Ghouse Basha, S/o.A.Abdul Munnaff, No.8, Dooming Lane Santhome, Chennai 600 004. ... 1^st Respondent/Insolvent 2.The Assistant Commissioner of income tAx, Non Corporate Range-1, Wanaparthy Block (New Block), No.121, Mahatma Gandhi Road, Chennai 600 034. ... 2^nd Respondent 3.A.Shamshad Begum, D/o.A.Abdul Munaff, No.30, Ranjith Road, Kotturpuram, Chennai 85. ... 3^rd Respondent 4.The Assistant Commissioner of income tAx, Non Corporate Range-2, Wanaparthy Block (New Block), No.121, Mahatma Gandhi Road, Chennai 600 034.. ... 4^th Respondent

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Application praying that this Hon'ble Court be pleased to direct to pay the tax liabilities along with interest of the co-sharer of the properties Mrs.A.Shamshad Begum, the 3^rd Respondent herein with respect to the sale of immovable property and the proceeds being used for payment of debts due to Board of Creditors of the insolvent for the Assessment Year 2015-16 on the conditional consent given by the Non-Inbsolvent co-sharer to pay her taxes from the sale proceeds.

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This application coming on this day before this Court for hearing in the presence of Mr.J.Balachander, advocate for the Official Assignee, the applicant herein and Mr.Rajkumar Paul, advocate for the 1^st

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Respondent/Insolvent herein and upon reading the Judges Summon and report of Official Assignee filed herein and

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THE COURT MADE THE FOLLOWING ORDER :

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This application has been taken out to permit the Official Assignee to pay the tax liabilities of the cosharer of the properties Mrs.A.Shamshad Begum in respect of the sale of immovable property. It is not in dispute that the proceeds of the sale of the immovable property of which the 3^rd respondent Mrs.A.Shamshad Begum is a co-sharer along with the insolvent has been utilised for payment of debts due to the General Body of the creditors of the insolvent. However, she had given her consent for sale of 50% of share also on condition that the Official Assignee would pay the

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tax liability that may arises out of the same. Therefore, it is the duty of the Official Assignee to discharge the tax liability that arises on the sale of the property for the Assessment Year 2015-2016. Hence, this application is ordered and the Official Assignee is directed to discharge the tax liability arising out of the sale of the 50% share of the 3^rd respondent Mrs.A.Shamshad Begum, for the Assessment Year 2015-2016. This application is ordered accordingly.

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WITNESS, THE HON'BLE MS. INDIRA BANERJEE, CHIEF JUSTICE, HIGH COURT AT MADRAS, AFORESAID THIS THE 12TH DAY OF DECEMBER 2017.

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//CERTIFIED TO BE TRUE COPY// DATED THIS THE DAY OF 2018

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MANAGER

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INSOLVENCY OFFICE From 25^th Day of September 2008 the Registry is issuing certified copies of the Orders/Judgments/Decrees in this format.

cns – 24.01.2018

HIGH COURT , MADRAS

APPLN. No.150 of 2017 in I.P. No.117 of 2010

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THE HON'BLE MR.JUSTICE

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R.SUBRAMANIAN

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ORDER DATED: 12.12.2017

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FOR APPROVAL: 25/01/2018/ 06/02/2018

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APPROVED ON : 07/02/2018

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COPY TO:

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THE OFFICIAL ASSIGNEE HIGH COURT,MADRAS.

The Official Assignee v. a.Ghouse Basha

Case brief

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The Official Assignee v. a.Ghouse Basha

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The Official Assignee Vs a.Ghouse Basha