The Delhi High Court has recently dismissed a petition by P C Financial Services Private Limited observing that the provisional attachment order has expired.
Recently, the Reserve Bank of India (RBI) has cancelled the certificate of registration (CoR) of P C Financial Services primarily engaged in mobile app-based lending operations through an app ‘Cashbean’ on account of supervisory concerns.
The petitioner, P C Financial Services Private Limited, approached the Court seeking modification of the order dated 31st May, 2022 passed by this Court by relying on the order dated 31st May, 2022 passed by a learned Single Judge of this Court in W.P.(C) 8514/2022, directing the Directorate of Enforcement to release a further amount of Rs. 25 crores in favour of the Petitioner to meet its essential expenditure as well as towards salaries of employees.
The department challenged the petition as the orders dated 17th December, 2021 assailed in the present petition issued under Section 132(9B) of the Income Tax Act, 1961 (‘the Act’) have expired on 17th June, 2022 due to operation of law.
Justice Manmohan and Justice Manmeet Pritam Singh Arora observed that as the impugned orders dated 17th December, 2021 have expired on 17th June, 2022 due to operation of law, the present writ petition is infructuous.
“Accordingly, the present writ petition along with application is disposed of with liberty to the petitioner to file a fresh proceeding in accordance with law to challenge the orders dated 16th June, 2022 passed under Section 281B of the Act. It is clarified that this Court has not expressed any opinion on the merits of the controversy. The rights and contentions of all the parties are left open,” the Court said.
Mr.Arvind Nayar, Sr.Advocate with Mr.Ajay Bhargava, Ms.Vanita Bhargava, Mr.Atul Pandey, Mr.Hirak Mukhopadhyay and Mr.Milind Jain, Advocates appeared for the petitioners.
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