Skip to main content

Dues to Government Should be Mentioned in Encumbrance Certificate: High Court

The Madras High Court has directed the Tamil Nadu Electricity Board (TNEB) to ensure that electricity bill dues of premises were reflected in encumbrance certificate issued by the Registration Department as and when a purchaser approached the property.

Wherever an electricity bill was due for a premises in question, TNEB should immeidately communicate the same to the Inspector General of Registration who, in turn, shall communicate the encumrance of the property in question to the Sub-Registrar concerned without delay and ensure it was reflected in the encumbrance certificate, Justice R Mahadevan said.

He gave the direction while allowing petitions filed by a school and two dargahs seeking to direct to give fresh electricity connection to their property in the city, which was disconnected for non-payment of dues accumulated over a period of 11 years.

Assistant Engineer of TNEB had rejected the plea for fresh connection saying that unless the dues of Rs. 3,12,656, which their erstwhile tenant had to pay were cleared, fresh connection could not be given.

The Judge directed that wherever there was an encumbrance over the properties pertaining to dues to the government like, municipal tax, electricity bill etc, and a charge should be created on such properties and the government should ensure the same was reflected in the encumbrance certificate.

This was necessary to protect the interest of purchasers, including government departments.

The court said it would be neither legal nor proper to insist on the realisation of the arrears due for giving re-connection.

The Judge also said that TNEB was at fault as it did not take steps to collect the dues.

 Article referred: http://www.ndtv.com/tamil-nadu-news/dues-to-government-should-be-mentioned-in-encumbrance-certificate-high-court-1203938

Comments

Post a Comment

Most viewed this month

Michigan House Approves 'Right-to-Work' Bill

Amid raucous protests, the Republican-led Michigan House approved a contentious right-to-work bill on  Dec 11 limiting unions' strength in the state where the (Union for American Auto Workers)  UAW was born. The chamber passed a measure dealing with public-sector workers 58-51 as protesters shouted "shame on you" from the gallery and huge crowds of union backers massed in the state Capitol halls and on the grounds. Backers said a right-to-work law would bring more jobs to Michigan and give workers freedom. Critics said it would drive down wages and benefits. The right-to-work movement has been growing in the country since Wisconsin fought a similar battle with unions over two years ago. Michigan would become the 24th state to enact right-to-work provisions, and passage of the legislation would deal a stunning blow to the power of organized labor in the United States. Wisconsin Republicans in 2011 passed laws severely restricting the power of public s...
Post a Comment
Read more

Power to re-assess by AO and disclosure of material facts

In AVTEC Limited v. DCIT, the division of the Delhi High Court held that AO is bound to look at the litigation history of the assessee and cannot expect the assessee to inform him.  In the instant case, the Petitioner, engaged in the business of manufacturing and selling of automobiles, power trains and power shift transmissions along with their components, approached the High Court challenging the re-assessment order passed against them. For the year 2006-07, the Petitioner entered into a Business Transfer Agreement with Hindustan Motors Ltd, as per which, the Petitioner took over the business from HML.  While filing income tax return for the said year, the petitioner claimed the expenses incurred in respect of professional and legal charges for the purpose of taking over of the business from HML as capital expenses and claimed depreciation. Article referred: http://www.taxscan.in/assessing-officer-bound-look-litigation-history-assessee-delhi-hc-read-order/8087/
Post a Comment
Read more

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more