Facts of the Case

The petitioners, namely Panache Infrastructure Pvt. Ltd., Laurel Infrastructure Pvt. Ltd., Zest Infrastructure Pvt. Ltd., and Surge Infrastructure Pvt. Ltd., instituted writ petitions before the Delhi High Court challenging actions undertaken by the Income Tax Department. During the course of proceedings, counsel appearing for the petitioners sought permission from the Court to withdraw the writ petitions while reserving liberty to pursue such alternative statutory remedies as may be available under law.

Issues Involved

  1. Whether the petitioners should be permitted to withdraw the writ petitions.
  2. Whether liberty could be granted to avail alternative legal remedies under the applicable law.
  3. What would be the status of interim relief granted during pendency of the petitions.

 

Petitioner’s Arguments

  • The petitioners, through counsel, sought leave of the Court for withdrawal of the writ petitions.
  • It was submitted that the petitioners intended to avail appropriate remedies available under the statutory framework.
  • Liberty was sought to preserve the right to pursue such remedies in accordance with law

Respondent’s Arguments

  • The respondents were represented by the Revenue authorities through standing counsel.
  • No detailed arguments on merits were recorded in the order as the matter was confined to the petitioners’ request for withdrawal 

Court Order / Findings

The Delhi High Court permitted withdrawal of the writ petitions and granted liberty to the petitioners to avail such remedies as may be available under law. Consequently:

  • The writ petitions were dismissed as withdrawn.
  • Liberty was expressly reserved in favour of the petitioners.
  • All interim orders passed earlier stood vacated.
  • Pending applications were dismissed accordingly.

Important Clarification

The Court did not adjudicate the dispute on merits. The dismissal of the writ petitions was procedural in nature, arising solely on account of the petitioners’ request for withdrawal. Therefore, the legal issues remained open for adjudication before the competent forum under the statutory mechanism.

This order reinforces the principle that withdrawal of writ proceedings with liberty does not extinguish substantive rights, provided alternative remedies exist under law.

 

Sections Involved

  • Article 226 of the Constitution of India (Writ Jurisdiction)
  • Income Tax Act, 1961 (Relevant statutory remedies and appellate mechanism)


Link to download the order - https://delhihighcourt.nic.in/app/case_number_pdf/2016:DHC:8974-DB/SMD06042016CW56362014_125138.pdf

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