Facts of the Case

The Petitioners, Ashoka Big Ventures and Kabana Agro Foods, filed writ petitions before the Delhi High Court challenging the action of the Income Tax Department in freezing their bank accounts.

During the course of proceedings, learned counsel for the Revenue gave an oral assurance that the bank accounts of the Petitioners would be de-freezed.

In light of this assurance, the Petitioners sought permission from the Court to withdraw the writ petitions, with liberty to approach the Court again if circumstances required.

Issues Involved

  1. Whether the writ petitions challenging freezing of bank accounts should continue when the Revenue assures de-freezing.
  2. Whether the Petitioners should be granted liberty to re-approach the Court in case of non-compliance.

Petitioners’ Arguments

  • The Petitioners challenged the freezing of their bank accounts as unjustified.
  • Upon receiving oral assurance from the Revenue regarding de-freezing, the Petitioners requested:
    • Withdrawal of the petitions
    • Liberty to file fresh petitions if required in future

Respondent’s Arguments

  • The Revenue, through its counsel, provided an oral assurance before the Court that the Petitioners’ bank accounts would be de-freezed.

Court’s Findings & Order

  • The Court recorded the statement made by the Petitioners’ counsel regarding the assurance given by the Revenue.
  • Accepting the request, the Court:
    • Dismissed the writ petitions as withdrawn
    • Granted liberty to the Petitioners to file fresh petitions if circumstances so warrant

Important Clarification

  • The Court did not adjudicate on the merits of the case.
  • The dismissal was procedural, based on:
    • Assurance by the Revenue
    • Voluntary withdrawal by the Petitioners
  • Liberty granted ensures that Petitioners retain the right to seek judicial remedy again if the assurance is not honored.

Link to download the order -

https://delhihighcourt.nic.in/app/case_number_pdf/2019:DHC:7523-DB/SMD22072019CW28332019_144014.pdf

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