Non-Communication About Show Cause Notice Being Transferred To Call Book Renders It To Have Lapsed: Bombay HC

Update: 2024-06-22 14:15 GMT

The Bombay High Court reiterated that non-communication about the show cause notice being transferred to the call book and being kept in abeyance would render the show cause notice to have lapsed.

The Court was hearing a petition seeking a declaration that the proceedings initiated pursuant to two show cause notices be declared as non-est.

The bench comprising Justice K R Shriram and Justice Jitendra Jain observed, “…ATA Freight Line (I) Pvt. Ltd. Vs. Union of India where it was held that non communication to petitioner about show cause notice being transferred to call book and being kept in abeyance would render the show cause notice to have lapsed……ATA Freight Line (I) Pvt. Ltd. has been confirmed by the Apex Court.”

Advocate Jitendra Motwani appeared for the appellant and Advocate Asha A. Desai appeared for the Respondent.

Brief Facts-

The petitioner, a subsidiary of ICICI Bank Limited, seeks a court declaration to nullify proceedings from two show cause notices citing delays in adjudication. The petitioner was not given a personal hearing for show cause notice 2. Notices for a personal hearing were received after a gap of 9 years. The petitioner was granted ad-interim relief which remains in effect. Later as per the affidavit, both show-cause notices were transferred to the call book.

While considering whether non-communication of transfer of the show cause notices to call book is fatal to the case of respondents the Court mentioned the decision in Shreenathji Logistics Vs. Union of India & Ors where according to the Court it was observed, “....... This Court has, time and again, held that if the show cause notice is being transferred to the call book, the party should be informed about the same. ........”

The Court noted that admittedly petitioner’s case was kept in abeyance in view of the pending SLP in the Apex Court in Malabar Management Services Pvt. Ltd however, in the Union of India & Anr. Vs. Intercontinental Consultants & Technocrats Private Limited the issue is decided in favour of the assessee.

Therefore, according to the Court, adjudication of a show cause notice could be nothing but an exercise in futility.

Finally, the Court quashed the show cause notices and disposed of the petition.

Cause Title: ICICI Home Finance Company Ltd. v. The Union of India (Neutral Citation: 2024:BHC-OS:8648-DB)

Appearance:

Appellant: Adv. Jitendra Motwani and Adv. Rinkey Jassuja

Respondent: Adv. Asha A. Desai, Adv. Jitendra B. Mishra and Adv. P. S. Patkar

Click here to read/download Judgment


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