PYDAH EDUCATIONAL ACADEMY Vs. STATE OF A.P.

JUDGEMENT

(1.) The petitioner herein had purchased an extent of 12000 sq. yards in Sy.Nos.98/1 and 170 of Cantonment Board, Block 2, Vizianagaram Municipality and West Sub-Registration, under a registered deed of sale dtd. 31/7/2020 from M/s. Sri Lakshmi Srinivas Jute Mills Limited (hereinafter referred to as the Jute Mills). This property had originally been mortgaged with certain banks and financial institutions. On the basis of an understanding between the vendor of the petitioner and these banks and financial institutions, the aforesaid property came to be sold to the petitioner.

(2.) M/s. Sri Lakshmi Srinivas Jute Mills Limited, on account of its financial difficulties, had defaulted payments to the Commercial Tax Department, in relation to the dues arising out of the A.P. VAT Act, 2005. The Commercial Tax Department, for recovery of its dues, had attached certain properties of the Jute Mills by way of a notice of attachment dtd. 27/11/2020. The Jute Mills sought to clear the tax dues, by way of installments, and sought such a facility. As this facility was not given, the Jute Mills had approached this Court by way of W.P.No.974 of 2021, which came to be disposed of, on 10/2/2021, permitting the Jute Mills to pay the dues in installments. Pursuant to this order, the Jute Mills addressed a letter to the tax authorities to release attachment of the property of the Jute Mills. After such attachment had been raised, the Jute Mills again sold, to the petitioner, 10,000 sq. yards under a registered deed of sale dtd. 30/3/2021. Subsequently, the Tax Department again attached the properties of the Jute Mills as tax amounts were not being paid. However, the properties sold to the petitioner were not included in the letter of attachment dtd. 18/8/2021. Thereafter, the 4th respondent- authority, passed an order, dtd. 20/10/2021, declaring the second deed of sale, dtd. 30/3/2021, to be null and void. Aggrieved by the said order, the petitioner had moved W.P.No.4847 of 2022.

(3.) At this Stage, Insolvency proceedings were initiated against the Jute Mills, before the NCLT Bench, Amaravati, under the provisions of the Insolvency and Bankruptcy Code, 2016 (for short =the IBC'). The 2nd respondent, after the initiation of the insolvency proceedings, issued a letter, dtd. 6/7/2022, to the 5th respondent seeking attachment of the entire land of the Jute Mills including the land admeasuring 12000 sq. yards sold to the petitioner, under the deed of sale dtd. 31/7/2020. The petitioner being aggrieved by the inclusion of 12000 sq. yards, in the order of attachment and subsequent process of recovery, had approached this Court by way of the present writ petition.