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TMI Blog1964 (12) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... on the one hand and the six petitioners on the other hand, the petitioners were appointed trustees with powers to realise and sell the properties and other assets of the said firm set out in the schedules thereto and to pay from the sale proceeds thereof rateably the debts due by the firm to its creditors. Clause (1) of the said deed of arrangement provided that the debtors, namely, the said firm and the two partners thereof, thereby assigned unto the trustees all their personal property mentioned in the first part of the first schedule to the deed as also immovable properties, free-hold as well as lease-hold, belonging to the debtors and described in the second part of the first schedule thereto. Under the said deed, the trustees were to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... schedule to the deed, were, (1) the stock-in-trade, outstandings and all movable properties belonging to and lying at the shop premises of the debtor-firm, namely, Messrs. G. Bhagwandas Ramchand, (2) the stock-in-trade, outstandings and all movable properties belonging to and lying in the shop premises and godown of Messrs. Harsh Radio Corporation, and (3) the stock-in-trade, outstandings and movable properties lying in the business premises of two other concerns by the name of Jay Ambe Sahayak Vastra Bhandar and Union Radios. The firm of Messrs. G. Bhagwandas Ramchand consisted of two partners, the said Narandas Aishiram and Govindram Aishiram. The firm of Harsh Radio Corporation consisted of three partners, Narandas Aishiram, Govindram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount by way of sale proceeds of the stock-in-trade or by way of outstandings appears to have been collected by the petitioners or deposited by them in the said bank account. It appears from the affidavit in reply that Harsh Radio Corporation was a registered dealer under the Bombay Sales Tax Act, 1959, for the period between 1st April, 1961, to 31st March, 1962, and 1st April, 1962, to 31st December, 1962. The aggregate amount of tax due by this firm under the assessment for these two assessment periods, when ultimately assessed, came to Rs. 5,184.78 nP. and under the notice issued for payment, that tax was payable on or before 28th September, 1963. The firm of Union Radios likewise was registered as a dealer. The firm had failed to pay t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the said two firms, namely, Harsh Radio Corporation and Union Radios. The notice set out the names of the two partners, i.e., Narandas Aishiram and Govindram Aishiram, and also the names of the six trustees under the said deed of arrangement. Copies of this notice were served on the said two partners, the petitioners and also the firms of Harsh Radio Corporation and Union Radios. By a revised notice dated 20th August, 1963, the first respondent demanded from the petitioners' bankers Rs. 5,184.78 nP. being the sales tax due from Harsh Radio Corporation, and Rs. 7,309.60 nP. from Union Radios, the assessments of the two firms having been completed on 19th August, 1963. The petitioners have challenged the two notices dated 7th August, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice, so much of the money as is sufficient to pay the amount due by the dealer in respect of the arrears of tax, penalty and sum forfeited under this Act, or the whole of the money when it is equal to or less than that amount. Therefore, the Commissioner can require a person, from whom any amount is due to a dealer, or a person who holds money for and on account of such a dealer. It is obvious that the dealer in this case would be the debtorfirm of Messrs. G. Bhagwandas Ramchand or the said firm of Harsh Radio Corporation or Union Radios. The point for determination, therefore, is whether the moneys deposited in the bank by the petitioners can be said to be moneys due to the debtor-firm or the said two firms or held on account of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners of the properties assigned to them, holding the trust premises upon trust to collect them in the first instance and after selling them to distribute the sale proceeds thereof rateably amongst the various creditors, a list of whom was annexed to Schedule II to the deed of arrangement. It follows, therefore, that the trustees were not holding the sale proceeds which they deposited with the said bank in a separate account in their names as agents of the said firms or any one of them, nor were they the transferees of or successors to those businesses. That being the position, it is not possible to say that the United Commercial Bank Ltd., Ahmedabad Branch, was holding the moneys lying in the said deposit account for or on account of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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