K.Venkatesan Vs Principal Additional Director General (Madras High Court)
Madras High Court held that the provisional attachment order passed under Section 83 of the CGST Act could not be made a basis to challenge any action that may be taken in future or any order passed towards recovery of loan under the SARFAESI Act.
Facts- By this petition under Article 226 of the Constitution of India, the petitioner has called in question the correctness and validity of the order of provisional attachment passed by the first respondent in purported exercise of power u/s. 83 of the Central Goods and Services Tax Act, 2017.
The relief, however, which has been sought in the writ petition is to forbear the respondent bank from taking coercive or adverse action against the petitioner under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise arising directly out of the consequence of the provisional attachment ordered by the first respondent. The petitioner has also prayed for issuance of a direction to the respondent bank to reverse any such action, if already, taken holding that the prolonged effect of attachment beyond the statutory limit was contrary to law, void ab initio and pass appropriate consequential order granting relief to the petitioner.
