Tamil Nadu Industrial vs Deputy Commissioner, Commercial Tax Office, Madurai And Others

B.Pugalendhi, J

The issue in this writ petition is whether the petitioner / Tamil Nadu Industrial Investment Corporation Ltd (hereinafter referred to as 'the TIIC') is having the first charge over the property or the first respondent / Commercial Tax Department.

2.The fifth respondent's Company has brought a loan from the TIIC and established a unit in the year 1994. The Company was also having certain arrears towards the Commercial Tax Department, for which, action was taken by the first respondent and the property was auctioned on 26.03.2008. The second respondent has purchased the property on the auction conducted by the first respondent.

3.The TIIC has now filed this writ petition claiming first charge over the property that they have lent money for the Company as early as in the year 1994.

Learned Counsel on either side submitted that the issue whether the TIIC is having the first charge or the Tax Department is having the first charge is the subject matter before the Hon'ble Supreme Court in Civil (Appeal) No.7332 of 2021. Therefore, a decision can be taken only on the outcome of Civil (Appeal) No.7332 of 2021.

4.It is also reported that the second respondent, pending these litigations, has also made a proposal and also paid a part amount of Rs.7,00,000/- to the TIIC. Based on the proposal and the amount paid by the second respondent, the petitioner / Branch Manager of TIIC, Dindigul, has sent a proposal to the Head Office for consideration. Therefore, the learned Counsel on either side requested to adjourn this writ petition for the outcome of the Civil Appeal and also for the acceptance of the proposal made by the second respondent.

5.Admittedly, the question as to whether TIIC is having the first charge over the property or the Tax Department is having the first charge is the subject matter pending before the Hon'ble Supreme Court in Civil (Appeal) No.7332 of 2021. This writ petition is pending from the year 2008. Therefore, this Court is not inclined to keep this matter any further and is inclined to dispose of the writ petition with a direction to the petitioner / TIIC to work out their right / claim based on the outcome of Civil (Appeal) No.7332 of 2021.

6.However, in view of the submission made by the learned Counsel on either side that the proposal of the second respondent is pending consideration and that since a part-amount has already been paid by the second respondent to the petitioner / TIIC, list this writ petition on 15.12.2023 'for orders', in the top of the list.