Summary
The High Court properly exercised review jurisdiction to restore a writ petition challenging an income-tax auction. Earlier orders relegating the parties to a civil suit had overlooked the statutory bar under Section 293 of the Income Tax Act and the effect of the later court order concerning permission to sell property in receivership. The Supreme Court upheld restoration while leaving the auction dispute and all substantive rights for decision in the writ proceedings.
Issues
- Whether overlooking the statutory civil-suit bar and the relevant permission order justified review and restoration of the writ petition.
- Whether the earlier disposal had conclusively determined the merits of the auction dispute.
Held
- Review addresses patent material error and cannot serve as a disguised appeal. The mistaken omission of Section 293, coupled with the unexamined effect of the 8 September 1965 order, justified review in these circumstances. (¶ 26–29)
- The earlier judgment had relegated the parties to a supposed pending civil suit rather than conclusively deciding their rights; that suit had already been dismissed before pronouncement. The challenge could not be left without adjudication in an available forum. (¶ 30–31)
- Restoration of the writ petition was upheld without adjudicating the validity of the auction or the substantive disputes. Observations in the appeal were confined to reviewing the restoration order. (¶ 31–32)
Result
Appeal dismissed; review order restoring the writ petition upheld. High Court to decide it on its own merits after hearing the parties, giving priority and proceeding expeditiously in view of the prolonged dispute. No costs; pending applications disposed of.