The Supreme Court of India has rejected a plea seeking to recall an ex-parte order citing the reason that if in-person notice was served to company’s Chartered Accountant ( CA ).
The Plea has been filed for Recall of the Judgment dated 05.03.2019 passed in C.A. No. 2463 of 2019, on the ground that the Applicant – Company was not served with the Notice of the SLP at the registered office of the Company, nor was a copy of the SLP served on the Applicant – Company. Consequentially, since the Judgment was passed exparte, the Applicants prayed for Recall of the Judgment and a de novo hearing.
The Applicants submitted that the Court Notices were sent to the earlier registered office address of the Applicant – Company i.e. at 310, 3rd Floor, BBlock, International Trade Tower, Nehru Place, New Delhi. However, on 19.05.2014, the Applicant – Company changed its registered office.
The Company also submitted that on an inspection of the court record, they learnt that the Affidavit of dasti service filed by the Revenue – Department on 19.12.2018, showed an acknowledgement receipt by Mr. Sanjeeva Narayan, the Chartered Accountant of the Applicant – Company on 13.12.2018.
The Company placed on record the Affidavit of Mr. Sanjeev Narayan – Chartered Accountant, wherein he has stated that he was the authorized representative of the Respondent – Company before the Income Tax Authorities but was not engaged before the High Court, or the Supreme Court. The Chartered Accountant further submits that he had received service on 13.12.2018 from one of the Inspectors of the Income Tax Department, but he bona fide believed that the documents were “some Income Tax Return documents from Income Tax Department.”
While dismissing the petition, the two judge bench comprising of Justice U.U Lalit and Justice Indu Malhotra observed that, “the Applicant – Company was duly served through their authorized representative, and were provided sufficient opportunities to appear before this Court, and contest the matter. The Applicant – Company chose to let the matter proceed exparte. The grounds for Recall of the Judgment are devoid of any merit whatsoever”.
“The Company having failed to make out any credible or cogent ground for Recall of the judgment dated 05.03.2019”, the Court also added.
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