FATIMA BEE Vs. DISTRICT REGISTRAR MEDAK DISTRICT

JUDGEMENT

(1.) The first petitioner is the wife and petitioners 2 to 4 are the daughters of Mirza Hussain Baig. It is stated that Mirza Hussain Baig is one of the Directors of M/s. Charminar Blue Flames Private Limited, Banjara Hills, Hyderabad. Holding that the company defaulted sales tax to a tune of ' 3,77,58,821/-, the Commercial Tax Officer, Jubilee Hills Circle, the third respondent herein addressed a letter dated 19.09.2007 to the District Registrar, Stamps and Registration Department, Medak, the first respondent herein with a request not to entertain any documents that may be presented by the family members of Mirza Hussain Baig for registration. Four items of properties held by the petitioners are mentioned and the names of the petitioners are indicated. The said communication is challenged by the petitioners. It is represented that the petitioners are not concerned with the company and even if there exists any arrears of commercial tax, the third respondent has to proceed against the company as provided for under law and that there is absolutely no legal basis for the third respondent to prevent enjoyment of ownership rights of the petitioners.

(2.) On behalf of the respondents, it is urged that the Inspector General of Stamps and Registration issued a memo dated 23.05.1987 to the effect that whenever any requests are received from the authorities of the Commercial Tax Department not to register any documents executed by the defaulters, such documents shall be kept pending until clearance is given.

(3.) Even from a perusal of the impugned letter, it is clear that the dues of sales tax are from M/s. Charminar Blue Flames Private Limited, Banjara Hills, Hyderabad. Whatever be the permissibility for proceeding against a Director of the company to recover the dues, there is no provision in law, which authorises any authority to proceed against the properties of the family members of a Director. Further, the memo issued by the Inspector General of Stamps and Registration enables the Registering Authorities to keep the documents presented by defaulters, pending. The petitioners are not at all defaulters. Hence, the writ petition is allowed and the impugned letter is set aside. It is left open to the third respondent to recover the arrears of sales tax in accordance with law. There shall be no order as to costs.