9911796707
TMI Blog1993 (3) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... (for short "the Act") bars the impugned action of recovery of arrears of sales tax from the petitioner No. 1 company. It is not in dispute that a reference under section .15(1) of the Act was made to the Board of Industrial and Financial Reconstruction (for short "the BIFR") in respect of the petitioner No. 1 company and a reference Case No. 125/91 was registered by the BIFR. It is also not in dispute that on July 13, 1992 the BIFR disposed of the case by passing an order declaring the petitioner-company to be sick industrial company within the meaning of section 3(1)(o) of the Act. It is also not in dispute that pursuant to the order passed by the BIFR, the Industrial Credit and Investment Corporation of India Ltd. (for short "the ICICI") ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... association of the industrial company or any other instrument having effect under the said Act or other law, no proceedings for the winding up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof shall lie or be proceeded with further, except with the consent of the Board or, as the case may be, the appellate authority........" 4.. The petitioners have filed as annexure P12 a scheme prepared for rehabilitation or revival of the petitioner-company. It is, therefore, clear that in compliance with the order of the BIFR dated July 12, 1992 (annexure P3 to the petition, para 12 of the order) the ICICI has submitted its r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relying on definition of "distress" in Bradby Law of Distress and meaning of "execution" in Halsbury's Laws of England came to the conclusion that both distress and execution relate to methods of recovery of moneys due from the industrial company. The learned single Judge held that refusing to supply declaration form was also a distress in a sense. Relying on a decision of the Supreme Court in Gram Panchayat v. Shree Vallabh Glass Works Ltd. [1992] 86 STC 41; AIR 1990 SC 1017, the learned single Judge also held that as the arrears of sales tax are recovered as arrears of land revenue by attachment and sale of the defaulter's property, this mode of recovery is also covered under section 22(1) of the Act. 6.. The learned counsel for the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on may accord its approval for proceeding against the company. If the approval is not granted, the remedy is not extinguished. It is only postponed. Sub-section (5) of section 22 provides for exclusion of the period during which the remedy is suspended while computing the period of limitation for recovering the dues." 7.. In the case before us the notices, annexures P4 to P7, are under the Land Revenue Code containing a threat of employing coercive process of recovery in default of payment and notices, annexures P8 to P11, are in fact garnishee orders issued to the Manager, State Bank of Indore, Branch Amona, A.B. Road, Dewas; Manager, State Bank of Indore, Branch Palsikar Colony, Indore; Manager, Punjab National Bank, Dadar, Bombay and M ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
