COVID-19: SC stays Kerala & Allahabad HC order of not levying taxes, etc. till April 6

Facts: 

Hon’ble HC, Allahabad in Writ Petition (Civil) No.7014/2020 has recently issued directions to all the concerned & competent authorities under the State Government, restraining them from taking any coercive measures against any person or body of persons in the society so as to force him/them to approach the Court for the redressal of grievance as follows –

  1. All the recovery proceedings at the end of the district administration, financial institutions and other administrative bodies/authorities/agencies and otherwise at the end of the instrumentalities of the State shall be deferred for a period of two weeks i.e. till April 6, 2020.
  2. All the auction proceedings, if any pending or initiated in the meanwhile, shall remain deferred for a period of two weeks i.e. till April 6, 2020.
  3. The District Magistrates and the Administrative Authorities are also restrained from issuing any directions for presence of any person or persons in connection with any pending or any other proceeding for a period of two weeks i.e. till April 6, 2020.
  4. No demolition exercise shall be carried out at the instance of District Administration or any authorities under the State Government/local bodies for a period of two weeks i.e. till April 6, 2020.
  5. No eviction or dispossession exercise against anyone be undertaken for a period of two weeks i.e. till April 6, 2020.

Similarly, Hon’ble HC, Kerala in Writ Petition (Civil) No.8231/2020 dated March 19, 2020 passed similar direction stating “…I deem it appropriate to issue general directions to all departments concerned like banks, financial institutions, Income Tax authorities, erstwhile KVAT, GST, recovery of tax on motor vehicles and building tax to defer the recovery proceedings or coercive measures till April 6, 2020.”

The Union Ministry of finance (“Petitioner”) filed a Special Leave Petition (“SLP”) questioning the jurisdiction of the High Court(s) to pass above-mentioned directions.

Issue:

Whether HC(s) has jurisdiction to pass such directions.

Held:

The Hon’ble SC in the matter of Union of India v. PD Sunny & others [SLP (Civil) Diary No. 10669/2020 dated March 20, 2020] held as under:

  • Ex-parte ad-interim stayed above-mentioned order passed by Hon’ble HC, Kerala and Allahabad, in view of the stand taken by the Government of India through learned Solicitor General, before SC, that the Government is fully conscious of the prevailing situation and would itself evolve a proper mechanism to assuage concerns and hardships of everyone.
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