| Case ID |
ec3907cb-5553-416d-871d-e8e1fa692f31 |
| Body |
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| Case Number |
CIVIL MISCELLANEOUS WRIT PETITION No. 402 OF 1979 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court held that after making an attachment, proceedings should be taken for the sale of the property within a reasonable time. The petitioner was entitled to a direction from the High Court to the Tax Recovery Officer (TRO) to proceed to sell the attached properties for the realization of the outstanding liability. The shares in question could not be sold as they were given as security and were never attached by the department in realization of disputed liabilities. The petition was allowed in part, directing the TRO to act within a specified timeframe for the sale of the attached properties. |
| Summary |
This case revolves around Tikaram & Sons (P.) Ltd., which faced heavy losses and was unable to pay certain income-tax dues. The Tax Recovery Officer attached the company's properties, including movable and immovable assets, as well as shares held by its directors. The petitioner sought a writ of mandamus to compel the sale of the attached properties to satisfy outstanding tax liabilities. The court emphasized the necessity of timely proceedings following an attachment and ruled that the TRO must sell the attached properties to recover dues. It was concluded that the shares could not be sold as they were merely security. This case highlights the complexities of tax recovery processes and the rights of companies under financial duress. |
| Court |
Allahabad High Court
|
| Entities Involved |
M/s. Malook Chand Cotton and Oil Mills
|
| Judges |
K.N. SETH,
R.R. RASTOGI
|
| Lawyers |
Shanti Bhushan,
R.K. Gulati,
L.M. Singvi,
R.R. Agarwal
|
| Petitioners |
Tikaram & Sons (P.) Ltd.
|
| Respondents |
Commissioner of Income tax, Agra
|
| Citations |
1983 SLD 969,
(1983) 142 ITR 319
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
222
|