Law:

Section:

Article 226 of the Constitution of India - Writ - Maintainability of - Whether where a rural bank established by Central Government filed writ petition against Income-tax Department without obtaining clearance from High Powered Committee, such a writ petition was not maintainable - Held, yes FACTS The petitioner, a rural bank established by the Central Government. It filed writ petition against Income-tax Department. The department by raising preliminary objection contended that as petitioner had not obtained clearance from High Powered Committee, the writ petition was not maintainable. The petitioner contended that in case it went to obtain clearance from the High Powered Committee, the same had no jurisdiction to pass stay/interim order and secondly, there was long queue and the application (for seeking appropriate permission to approach Court) itself might be rendered infructuous by passage of time since the impugned order itself might be exhausted. HELD High Powered Committee may be functioning purely as an administrative body but when the petitioner and the Income-tax Department both were under control of the Central Government, there was no doubt that such High Powered Committee could issue instructions/order which should be binding in administrative exigency upon the both and there was no doubt that the department against which such order was passed should honour the same. As far as question of long queue was concerned, as the Courts are also overburdened by litigations in that background this self-mechanism is provided to shed unnecessary litigation between the departments.[Para 7] In that view of the matter, the petitioner might approach the High Powered Committee by filing appropriate application for seeking permission along with an application for interim relief, if any. The High Powered Committee should consider the interim application on merit exercising its unfettered discretion on the basis of material on record before it. [Para 8] In view of the above, the preliminary objection raised by the department was to be upheld. It was not disputed that no clearance from High Powered Committee was obtained. [Para 9] Thus, the writ petition was dismissed…

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