Covid-19: Supreme Court Stops High Court Order Staying Tax Recovery For Two Weeks

The Supreme Court put on hold two stay orders that were issued by state high courts in view of the novel coronavirus outbreak after the central government moved against them.

The Kerala High Court had yesterday stayed all cases pertaining to tax and revenue recovery and securitisation proceedings until April 15.

The Allahabad High Court, too, passed a similar general direction directing the Uttar Pradesh administration to not pass any recovery, auction or demolition orders which may force any person to approach courts for grant of relief during the next two weeks.

A top court bench comprising Justice AM Khanwilkar, Justice Vineet Saran and Justice Anirudhha Bose passed the stay order after Solicitor General Tushar Mehta, assisted by Advocate Zoheb Hossain, mentioned the plea to the judges. This means that the orders by the high courts would be ineffective for now.

Here’s a look at the what the courts had said in these two cases and how other courts are responding to the Covid-19 pandemic:

Kerala High Court: Stay On Tax, Revenue Recovery Matters

The Kerala High Court, in a blanket order dated March 19, stayed all cases pertaining to tax and revenue recovery and securitisation proceedings until April 15.

The order, passed by a bench headed by Justice Amit Rawal, said it’s aimed at reducing the number of cases which may lead to people coming to court during this period. “I’m of the view that this present scenario of outburst of deadly coronavirus is very precarious and sensitive, as the lawyers and the staff rendering assistance to this court and the judges are vulnerable.”

The court also issued general directions to banks, financial institutions, income tax authorities and authorities dealing with the erstwhile KVAT (Kerala Value Added Tax), goods and services tax, recovery of tax on motor vehicles and building tax to defer recovery proceedings or coercive measures till April 6.

The court, however, clarified that this order won’t come in the way of those who wish to settle their disputes by availing amnesty scheme and paying their dues. Such individuals can still go ahead with their settlements and payment of dues and this order shall not be a hindrance in that, the court said.

Allahabad High Court: No Recovery, Auction, Demolition Orders

The Allahabad High Court directed the Uttar Pradesh administration to not pass any recovery, auction or demolition orders which may force any person to approach courts for grant of relief during the next two weeks.

A High Court bench headed by Justice Ajit Kumar also ordered district magistrates to not seek personal presence of any individual in relation to any of these proceedings for the next two weeks. Any demolition exercise which may be carried out at the instance of district magistrates or any other authority under the state government has also been put on hold.

The high court has asked a copy of its order to be forwarded to the Chief Secretary of the state and ensure compliance within 48 hours. The issue will be taken up next on April 6.

Rajasthan High Court: No Oral Arguments

The Rajasthan High Court has done away with the requirement of lawyers to be present in the court room and argue their cases where an urgent interim order is required. The high court announced it won’t insist on personal appearance of lawyers and submissions can be made in writing, and can be submitted on e-mail, WhatsApp or on the court website.

The court has also extended the interim order in cases where they were about to expire. Such orders will be considered to continue until the cases are taken up by a regular court in due course of time. The court has also restricted the number of people at the filing counter to one per case.

This notification comes in the light of the Section 144 orders being imposed in the state due to the threat of the outbreak of the novel coronavirus. The court’s directions will be in effect till March 31.

Bombay High Court: Only Urgent Hearings

The Bombay High Court has followed the Supreme Court in restricting the hearing of cases to only urgent matters.

The court has restricted its work timings between 1 p.m. to 2 p.m. and has moved the process from open courtrooms to conducting hearings through video conferencing.

As per the orders of the court, lawyers have been allowed to mention very urgent cases to the bench during this time by either coming to the court’s designate room for video conference with the bench or accessing the video conference through an app in their computers or cell phone.

The process has been activated from March 18 and there is no word on till when will this process continue.

Besides the high courts, the Supreme Court too is considering measures to avoid crowding of court rooms at this time. The top court has substantially reduced the number of benches sitting currently and is taking up only urgent cases for hearing.

The Supreme Court is also considering conducting hearings through video conference and allowing access to journalists to these hearings through a separate room where they can watch the proceedings on smart TVs installed in the room.

The top court’s e-committee cell, headed by Justice DY Chandrachud, is considering the proposals with members from the Supreme Court Bar Association and the Supreme Court Advocate On Record Association. No final announcement has yet been made by the court on these proposals.