Facts of the Case

RVS Global Solutions Pvt. Ltd. filed an Interim Application seeking modification of the Bombay High Court's earlier order dated 25 July 2022. Under the previous order, the petitioner was restrained from alienating or creating any third-party interest in the property.

The petitioner submitted that the earlier order effectively prevented it from dealing with the property despite its willingness to deposit the differential premium, process fees, and applicable GST. It therefore requested suitable modification of the interim directions.

Without prejudice to its rights and contentions, the petitioner offered to deposit ₹31,37,113 towards differential premium and ₹2,630 towards process fees and GST before the Court.

Issues Involved

  1. Whether the earlier interim order restraining dealings with the property required modification.
  2. Whether the petitioner should be permitted to secure the claim by depositing the differential premium, process fees, and GST.
  3. Whether Respondent authorities should be directed to transfer the writ plot after such deposit.
  4. Whether the deposit should remain subject to the final outcome of the writ petition

Petitioner's Arguments

  • The petitioner contended that the earlier injunction practically disabled it from dealing with the property.
  • It expressed readiness to deposit the entire differential premium along with process fees and GST.
  • The petitioner submitted that such deposit should adequately protect the interests of the respondents while allowing the transfer of the writ plot.
  • The offer to deposit the amount was made without prejudice to its legal rights and contentions in the pending writ petition.

Respondents' Arguments

  • Senior Counsel appearing for Respondent Nos. 2 to 4 stated that the respondents had no objection to the petitioner's proposal of depositing the differential premium together with process fees and GST.
  • Accordingly, the respondents did not oppose modification of the earlier interim order.

Court Order / Findings

The Bombay High Court accepted the proposal made by the petitioner and modified its earlier order dated 25 July 2022.

The Court directed:

  • The petitioner shall deposit ₹31,37,113 towards differential premium.
  • The petitioner shall also deposit ₹2,630 towards process fees and GST.
  • The deposits shall be without prejudice to the rights and contentions of both parties and shall remain subject to the final decision in the writ petition.
  • Upon such deposit, Respondent Nos. 2 and 3 shall transfer the writ plot in favour of the petitioner within one month.
  • The earlier order dated 25 July 2022 stood modified accordingly.
  • The Interim Application was disposed of.

Important Clarification

  • Deposit of the disputed amount does not determine the final rights of either party.
  • The deposit was accepted only as an interim arrangement pending disposal of the writ petition.
  • The transfer of the writ plot was directed only after compliance with the Court's deposit conditions.
  • The Court specifically preserved the legal rights and contentions of both sides for final adjudication.
  • The order illustrates that interim restrictions may be modified where adequate financial security is furnished and the opposite party has no objection.

Sections / Legal Provisions Involved

  • Article 226 of the Constitution of India
  • Principles governing interim relief in writ proceedings
  • Provisions relating to payment of differential premium, process fees and applicable GST
  • Civil Appellate Jurisdiction of the Bombay High Court 

Link to Download the Order

https://mytaxexpert.co.in/uploads/1785321635_2221compressed.pdf

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