Quick Summary: Vigneswara Developers got caught in a mix-up with their bank account being frozen because of a partner's other business dealings. The court stepped in to sort it out and ordered the bank to unfreeze their account.
Vigneswara Developers, a company based in Hyderabad, found themselves in a tough spot. Their bank account was frozen because of a notice related to unpaid taxes. The problem? The taxes were actually linked to another company, Select Enterprises, where one of their partners, Nallavelli Geeta, is also a partner.
"The petitioner-firm has received a notice... stating that it has been asked to hold an amount of Rs.10,92,298/-."
The case was heard by Chief Justice Sri Aparesh Kumar Singh and Justice G.M. Mohiuddin. The court was informed by the lawyer for Vigneswara Developers, Sri G.R.S. Akhileswar, that Vigneswara Developers had nothing to do with the taxes owed by Select Enterprises. They just wanted to use their account normally.
"Vigneswara Developers is not being allowed to use its account in Karur Vysya Bank."
During the proceedings, the court allowed Vigneswara Developers to put money into their frozen account but did not allow any withdrawals until the next hearing. This was a temporary solution until the issue was fully resolved.
"Vigneswara Developers is permitted to make deposits... subject to the condition that they will not withdraw any amount."
The Assistant Government Pleader for State Tax explained that the issue was with the partner's account, not Vigneswara Developers' account. With this clarification, the court ordered Karur Vysya Bank to unfreeze the account within three days.
"Karur Vysya Bank would unfreeze Vigneswara Developers’ account within a period of three days."
The court decided that Vigneswara Developers' account should be unfrozen, allowing them to use it again. The mix-up was sorted out, and there were no claims against them.
