The Madras High Court, in a notable ruling earlier this week, overturned an order issued against a deceased individual, stating that legal proceedings targeting someone who has passed away are invalid.

In a tax dispute involving M/s S.R. Steels, a company previously owned by a deceased proprietor, the Madras High Court recently ruled on the validity of proceedings against the deceased. The order, dated February 7, 2024, was issued against the late proprietor, who had passed away on November 21, 2019.

Justice Krishnan Ramasamy overturned the tax order, allowing the legal heir of the deceased to present their case. The petitioner, represented by Adv Manoharan S. Sundaram, argued that the order was issued without their knowledge and requested permission to respond to the allegations. They also sought the de-freezing of the company's bank account, which had been frozen following the tax order.

Special Government Pleader G. Nanmaran, representing the respondent, conceded that the proceedings were incorrectly initiated against the deceased. He asked the court to allow the petitioner to file a response to the show cause notice and to remand the matter for fresh consideration. The respondent also proposed that the petitioner be required to pay 10% of the disputed tax amount as a precondition for further hearings.

The court agreed to remand the case to the tax department for reevaluation. Justice Ramasamy directed the petitioner to pay 10% of the disputed tax within four weeks and ordered the department to lift the bank account attachment upon payment. The petitioner was given two weeks to file objections to the show cause notice, and the tax officer was instructed to issue a clear notice for a personal hearing. The case was to be disposed of expeditiously after considering the petitioner’s objections. 

The writ petition was thus disposed of, with an order for the immediate de-freezing of the petitioner’s bank account upon proof of the tax payment.