The Gujarat High Court stayed the recovery of dues of the deceased dealer by auctioning his mother’s immovable property.
The principal argument of Mr. Trivedi, the counsel for the petitioner is that the respondents could not have invoked Section 57 of the Gujarat Value Added Tax Act, 2003 for the purpose of recovering the dues of the deceased dealer as the immovable property sought to be put to auction is of the ownership of the mother of the deceased dealer and it is not the estate of the deceased.
It was argued that even for the purpose of invoking Section 57 of the GVAT Act, 2003, the condition precedent is a notice under Section 42 of the GVAT Act in accordance with Rule 61 of the Rules. In the absence of any notice of demand under Section 42 of the GVAT Act, 2003 read with Rule 61 of the Rules, no notice for auction of the property in question under Section 152 of the Gujarat Land Revenue Code could have been issued.
The Division Bench of Justice J.B.Pardiwala and Justice Ilesh J.Vora noted that there is nothing to indicate that the immovable property in question is the estate of the deceased. There is nothing to even indicate that the deceased dealer was the joint owner or a co-owner of the property in question.
“However, with a view to give one opportunity to the learned AGP to meet with the aforesaid two arguments of the learned counsel appearing for the writ applicant, we grant one week time to Mr. Utkarsh Sharma. On the next date of hearing, Mr. Sharma shall point out to the Court in what manner the property in question is the estate of the deceased and whether any notice of demand under Section 42 of the GVAT Act, 2003 read with Rule 61 of the Rules has been issued at any point of time, in accordance with the law,” the court said.
Therefore, the court posted the matter on March 15, 2021, on top of the Board and directed that till the next date of hearing, the respondents shall maintain the status quo as regards the nature, character, and possession of the property in question.
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