1996 (1) TMI 385

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..... ny was declared as a sick industry and a scheme for rehabilitation was framed by BIFR (Board for Industrial and Financial Reconstruction). Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 deals with suspension of legal proceedings, contracts, etc. That section states that no proceedings for execution, distress or the like against any of the properties of the industrial co .....

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..... as also issued to the State Bank of Travancore, Tirupur, for the said amount of Rs. 64,72,755. It is at this stage the petitioner has approached this Tribunal with the prayer to forbear the Commercial Tax Officer, Tirupur from recovering sales tax for the assessment years 1985-86 to 1987-88 without obtaining the sanction of Board for Industrial and Financial Reconstruction, as per section 22 of th .....

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..... for the recovery of which the form B6 notice was issued. It is true that the High Court granted a conditional stay. On the condition not having been complied with, the stay stood automatically vacated. The only legal consequence would be that there was no stay. The amount of sales tax due for the years 1985-86 to 1987-88 became due and payable. The petitioner was admittedly in arrears of paymen .....

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