9911796707
TMI Blog2001 (6) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... the company settled the matter and the settlement became final with the payment of 50 per cent. of the tax as envisaged by the Scheme itself. However, the declarations made on behalf of the directors and others, i.e., co-noticees, were not accepted and the order was passed on October 30, 1998, against them. Thereafter, an order was passed on November 30, 1998, imposing penalties on the directors and others. X X X X Extracts X X X X X X X X Extracts X X X X ..... come into force. As per this statutory order it was provided that in case the dispute has been settled by the company, the proceedings will be treated to be concluded against the other directors/co-noticees in case the notice was pending as on the date of declaration. In view of this statutory order, the petitioners herein made a representation on December 24, 1998, that the order imposing penalties against them may not be acted upon because the company had already settled the dues and under section 1(2) of the Kar Vivad Samadhan Scheme (Removal of Difficulties) Order, 1998, their liability had come to an end with the settlement of dues by the company as the Removal of Difficulties Order itself provided that it will be effective from Sept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a show-cause notice was issued on the same matter covered under the declaration. (Sd.) Lata Gulati, Under Secretary to the Government of India. The respondents have opposed this claim on the ground that on December 8, 1998, when the aforesaid Removal of Difficulties Order was issued, the orders with regard to the penalties had already been passed against the petitioners on November 30, 1998, after the rejection of their claim on October 30, 1998. We have considered the submissions made on behalf of both the sides. In teeth of the fact that the Removal of Difficulties Order itself has been made effective from September 1, 1998, and which is clearly retroactive in nature, the submission of the respondents cannot be accepted. If such in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppened and the same has precipitated the filing of these petitions. For the reasons aforesaid, all these six petitions deserve to be allowed. All these six petitions are hereby allowed and it is observed that the orders dated October 30, 1998, and November 30, 1998, passed against the petitioners shall not be given effect to and acted upon against them and it will be treated as if these orders had never been passed against them and the case of the present petitioners shall also be treated as covered and settled under the Kar Vivad Samadhan Scheme (Removal of Difficulties) Order, 1998, and the proceedings which were initiated against the petitioners under the show-cause notice dated July 16, 1997, shall stand terminated. Rule is made absol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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