9911796707
TMI Blog2000 (12) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer under the Bengal Finance (Sales Tax) Act, 1941 and also under the Central Sales Tax Act. Since there was a continuous labour trouble in the company it could not run smoothly as such resulting heavy loss in the production. Ultimately, the Board of Directors of the petitioner made reference to the BIFR pointing out the relevant facts reflected in the final accounts of the company and on considering the financial position and other aspects, the BIFR declared the company a sick industrial company on February 8, 1990 within the meaning of Sick Industrial Companies Act. A rehabilitation scheme was proposed and the IRBI decided to advance term loan subject to the scheme being sanctioned for implementation by AIFR but ultimately due to finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the honourable High Court, but it was made out of list due to pendency of the writ petition filed before the High Court against the order of BIFR. In the meantime, assessment of four quarters ending on March 31, 1988 was completed by the assessing authority and huge demand was raised by the respondent No. 1, the assessing authority. Appeal was preferred against this order and it was modified in appeal. The petitioner thereafter was directed to make payment by a letter dated September 13, 2000 issued by the respondent No. 2 and there was a threat that penal action would be taken if no payment is made. The said letter was not given effect being challenged before the Tribunal since it was not in form prescribed under a statute. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proceeding for realisation of sales tax should be stayed since the decision of the honourable Court if goes in favour of the petitioner or for taking further step by the BIFR for reconsideration of the scheme or appeal, the realisation of tax will be against the existing position of law and will act adversely to the principles of natural justice. 5.. The point for consideration, therefore, is if the petitioner is entitled to get the relief such as for stay of the proceedings for realisation of sales tax. Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 provides that in case the enquiry under section 16 is pending or any scheme referred to under section 17 is under preparation or consideration by BIFR or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as 381 (MP) held that the sales tax dues would be barred by the provisions under section 22(1) of the Act where reference had been made to the Board under section 15(1) and operating agency had been appointed for preparing a scheme for the same. The Allahabad High Court has held in Industrial Finance Corporation of India v. Maharashtra Steels Ltd. [1990] 67 Comp Cas 412, that an aggrieved party may move the Board for its consent to appointment of a receiver where a reference had already been made to the Board registered and even a Bench nominated to make an enquiry. Thus, in all the aforesaid cases it is clear that the High Courts never adopted the measure to stop the proceedings for execution or distress against the properties of sick indu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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