Rakesh Kumar Saini Vs Power Finance Corporation Ltd. (Delhi High Court)
Delhi High Court held that it is beyond the scope of the High Court to allow premature redemption from the bond through judicial intervention. Accordingly, petition for premature redemption from bond dismissed.
Facts- The petitioner sold his residential property and based on an advise invested the sale proceed in the bonds issued by the Respondent – Power Finance Corporation in order to avail the benefit of capital gain tax exemption.
In the meantime, the Petitioner booked a residential flat in Noida and he wanted to make payment for the final instalment of the flat in lieu of the residential property sold by him in Delhi. He was advised that he would have been eligible for a capital gains tax exemption had he used the proceeds from the Delhi property sale to purchase the property in Noida.
Accordingly, within a month of the bond certificates being issued, the Petitioner, through communication dated 13th July, 2024, requested the Respondent to cancel the PFC bonds and refund the invested amount, intending to use those funds to pay the final instalment for the residential flat in Noida.
On 16th July, 2024, the Respondent replied to the Petitioner’s request, stating that there was no procedure in place to allow redemption of the investment before maturity of the bonds. Aggrieved by this refusal, the Petitioner filed the present writ petition.
