Facts of the Case

The petitioner, M/s Kotdwar Steel Limited, challenged an order dated 14.02.2024 whereby its cash credit account maintained with Canara Bank was provisionally attached by the respondent authority, i.e., Directorate General of GST Intelligence.

During the pendency of the writ petition, the respondent authority issued a communication dated 08.04.2024 vacating the attachment and informing the concerned bank accordingly.

Issues Involved

  1. Whether the provisional attachment of the petitioner’s bank account was legally sustainable.
  2. Whether relief was required from the Court after the attachment had already been vacated during proceedings.

Petitioner’s Arguments

  • The petitioner challenged the legality of the attachment order dated 14.02.2024.
  • It was submitted that the attachment had already been vacated by the respondent authority through a communication dated 08.04.2024.
  • Therefore, appropriate directions were sought for implementation of the said communication by the bank. 

Respondent’s Arguments

  • The respondent authority acknowledged that the attachment had been lifted.
  • A formal communication had already been issued to the bank for compliance.

Court’s Findings / Order

  • The Court took on record the communication dated 08.04.2024 vacating the attachment.
  • In view of the development, the Court disposed of the writ petition.
  • The Court directed Canara Bank to comply with the directions issued by the Principal Additional Director General and act upon the communication lifting the attachment.

Important Clarifications

  • Once the provisional attachment is vacated by the authority itself, the writ petition becomes infructuous to that extent.
  • The Court can still issue directions for effective implementation, ensuring that banks act promptly.
  • The order reflects judicial restraint where no adjudication on merits is required due to subsequent developments.

Link to download the order - https://delhihighcourt.nic.in/app/showFileJudgment/62709042024CW42622024_111030.pdf

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