Assessee is Directed to Clear Outstanding Dues to Enable Registration of Sale Certificate for Auctioned Property | HC

Case Details: Cholamandalam Investment and Finance Company Ltd. vs. Assistant Commissioner, Karur – 2 - [2025] 173 taxmann.com 450 (Madras)

Judiciary and Counsel Details

• Vivek Kumar Singh, J.
• V. Sukumar, for the Petitioner.
• J.K. Jayaselan, Government Adv., R. Suresh Kumar, Addl. Govt. Pleader & P. Dhanasekaran for the Respondent.

Facts of the Case

The petitioner’s loan accounts were declared Non-Performing Assets (NPA) due to non-payment of the loan. Following this, statutory notices were issued, and the authorities initiated the process for recovery of the outstanding dues. An e-auction of the petitioner’s property was conducted as part of this recovery process, in which Respondent-6 (R6) emerged as the successful bidder. A sale certificate was issued to R6 post-auction. However, a recovery notice was also issued to the petitioner along with GST-DRC-13, notifying the petitioner of an attachment endorsement over the subject property. As a result of this attachment, R6, the successful bidder, refrained from proceeding with the registration of the sale certificate, leaving the petitioner unable to realize the sale proceeds. The petitioner expressed a willingness to pay the remaining outstanding dues once the sale certificate was registered in favour of R6, seeking relief from the Madras High court.

High Court Held

The Hon’ble Madras High Court held that the petitioner was required to pay the remaining outstanding dues to the government within a period of four weeks to facilitate the registration of the sale certificate in favour of R6. The court directed the petitioner to clear the outstanding dues under Section 79 of the Central Goods and Services Tax Act, 2017, and the Tamil Nadu GST Act, 2017, for the registration process to proceed.