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2018 (6) TMI 1564

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..... uch constitutes the dues of either the Department of Income Tax or the secured creditors to whom, admittedly, the petitioner says, it owes certain money. Equally, we find that merely because an undertaking is given to this court in this writ petition and the amount is brought in this court and from which appropriations and adjustments will now be made does not mean the legal and statutory powers and rights of those, who are not before this court, cannot be adversely affected. These rights cannot be said to be prejudiced, much less adversely by any order in these petitions. Since the amount has now been credited to the account of the State of Maharashtra and the account of this court in the RBI is now debited, as is clear from the certifi .....

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..... appearing before us brought to our notice the endorsement and based on which we called upon the parties to obtain an appropriate certificate. Today, the Registrar (Judicial) has given a certificate certifying a deposit of the amount in the court and consequent debiting this court's account in the RBI so as to enable the State Government to have this amount credited to its account and for onward disbursement. 3. From the order passed on 4th May, 2018, it is apparent that the anxiety of this court was not to allow exploitation of teachers and students. In para 2 of this order, it is clear that this court referred to a policy of the State Government and regarding the amount of scholarship and fees, which are payable on account of admiss .....

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..... . In terms of this court's orders and directions, the learned Advocate General intervened and thereafter, an affidavit was filed by the Department concerned, namely, the Joint Secretary, Social Justice and Special Assistance. In this affidavit, various details were disclosed and how the policy has to be worked out or rather reworked. For the last academic session, the Government decided to implement the policy, as stated before this court. In these circumstances, the Government was told not to insist on further applications from the students, but take a pragmatic and practical view insofar as that academic session is concerned. This was a peculiar situation and the staff or teachers were awaiting payment of their salaries. 6. Then, w .....

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..... ement and the Department of Income Tax. There are proceedings filed and pending before the Division Bench of this court assigned Appeals and Writ Petitions under the Direct Tax Laws. Mr. Sawant apprehends that on account of the provisions of sections 226 and 227 of the Income Tax Act, 1961 and particularly the mode of recovery prescribed therein, the amount, which is deposited by the State Government of ₹ 112 crores and odd if credited to the account of the management, it can only be in a Bank account, not under the attachment of the Income Tax Department. He was fair to state that presently the bank accounts of the petitioner are attached. There is only one Bank account operational, but not in a Nationalised Bank. Thus, there is no B .....

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..... t is not for this court to express any opinion on whether the amount, which is brought in this court, can be taken away by the Management or can the State Government be permitted to adjust the same towards its other dues or the amount as such constitutes the dues of either the Department of Income Tax or the secured creditors to whom, admittedly, the petitioner says, it owes certain money. Equally, we find that merely because an undertaking is given to this court in this writ petition and the amount is brought in this court and from which appropriations and adjustments will now be made does not mean the legal and statutory powers and rights of those, who are not before this court, cannot be adversely affected. These rights cannot be said to .....

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