An asset reconstruction company challenged an attachment notice issued under the Revenue Recovery Act against a company Director's property for gratuity dues. The court noted the company was in liquidation and surplus sale proceeds lay with the erstwhile management, permitting recovery from those proceeds.
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W.P.No.7396 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 25.06.2024
CORAM
THE HONOURABLE MR.JUSTICE G.K.ILANTHIRAIYAN
W.P.No.7396 of 2021 and
W.M.P.Nos. 7911 & 7912 of 2021
M/s.Omkara Asset Reconstruction Company Private Limited, represented by its authorised signatory Sudhan Srikanth .... Petitioner
Vs
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W.P.No.7396 of 2021
Prayer:- Writ Petition filed under Article 226 of Constitution of India for the issuance of Writ of Certiorarified Mandamus, quashing the Form 5 Notice issued under Section 27 of Tamil Nadu Revenue Recovery Act 1864 issued by the third respondent Tashildar in Na.Ka.2679/D32 dated 11.01.2021 issued in lieu of the communications of the first respondent order dated 11.09.2020, second respondent communication 24.07.2020, and third respondent communication 07.12.2020 and direct the respondents as not to take any coercive steps by attempting to recover or attach any properties based the third respondent notice dated 11.01.2021 as it would be prejudicial to the petitioner holding first charge over the properties of the fifth respondent and respondent's company.
For Petitioner : M/s.S.Yogalakshmi For R1 to R4 : Mr.E.Vijay Anand Additional Government Pleader
For R5 : No appearance
ORDER
This Writ Petition has been filed challenging the attachment
notice issued by the third respondent dated 11.01.2021 as against the one of the Director of the fifth respondent's property.
perused the materials available on record.
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submitted that the personal properties of the fifth respondent have been specifically assigned in favour of the petitioner and it is having first charge over the properties of the fifth respondent. Therefore, the third https://www.mhc.tn.gov.in/judis Page 3 of 7
W.P.No.7396 of 2021
respondent cannot proceed to execute Form 5 notice of attachment issued under Section 27 of the Revenue Recovery Act 1864 for pending gratuity payment.
the respondents 1 to 4 relied upon the order passed by this Court in W.P.(MD) No.19938 of 2020, in which, the President of Tamil Nadu Textiles and Common Labour Union filed for a direction directing the first respondent to recover an amount of Rs.24,45,404/- with interest at the rate of 15% p.a. from 11.01.2018 from the fifth respondent herein. While hearing, it was brought to the notice of this Court that the fifth respondent herein is subjected to liquidation proceedings before the National Company Law Tribunal and the liquidator is already appointed for liquidation of said Company. Accordingly, the fifth respondent Company was already sold out by the creditor Bank and the surplus sale proceedings are lying with the erstwhile Management and the amounts can be recovered from the first respondent by implementing the order dated 24.07.2020. Therefore, the first respondent is directed to take all necessary steps for complying with the said requirements. Further, it is recorded that the first respondent had already initiated the proceedings
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under the Revenue Recovery Act and an order of attachment under Section 27 of the Revenue Recovery Act, was effected and directed the first respondent to conclude the proceedings.
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W.P.No.7396 of 2021
No costs.
disposed of. Consequently, connected miscellaneous petitions are closed. No costs.
25.06.2024
Internet : Yes Speaking/Non-speaking order Neutral Citation : Yes/No Lpp
To
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W.P.No.7396 of 2021
G.K.ILANTHIRAIYAN, J.
Lpp
W.P.No.7396 of 2021
25.06.2024
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1 issue framed by the court
Whether the Form 5 attachment notice under Section 27 of the Revenue Recovery Act for gratuity dues could proceed against a Director whose property was mortgaged to an asset reconstruction company hol
2 provisions across 2 enactments
M/s.Omkara Asset Reconstruction Company Private Limited
The District Collector, Karuppa Gaundanpalayam, Tiruppur, Tamil Nadu
The Deputy Commissioner of Labour, DMS Campus, Teynampet, Chennai, Tamil Nadu
The Tashildar, Tiruppur South, Kallangadu, Tiruppur, Tamil Nadu
The Revenue Tashildar, Jaivabhai School Road, Susaiyapuram, Rayapuram, Tiruppur, Tamil Nadu
Radhambigai, Director of M/s.Tiruppur Surya Hi Tech Apparel Private Limited
G.K. Ilanthiraiyan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
