PRAKASH TEXTILES Vs. TAX RECOVERY OFFICER

JUDGEMENT

(1.) This appeal oy the plaintiff is directed against the judgment and decree dated 10-4-1981 passed by the VIII Addl. City Civil Judge, Bangalore, in R. A. No. 188 of 1980, on his file, dismissing the appeal, on confirming the judgment and decree dated 16-4-1977 passed by the I Addl. I Munsiff, Bangalore, in O. S. No. 69 of 1975, on his file, dismissing the suit of the plaintiff.

(2.) Plaintiff filed a suit for permanent injunction to restrain defendant-1 from selling the suit schedule property and in any way interfering with his possession and enjoyment thereof. The plaintiffclaims that it was a registered partnership firm and that the plaintiff was the absolute owner in possession and enjoyment of the suit schedule property having purchased the same from defendant-2 under a registered sale deed dated 24-10-1966. Proceedings were initiated by defendant-1 for recovery of arrears of income tax due by defendant-2 who, in turn, sold the property in question in favour of plaintiff. It is the case of the plaintiff that the suit schedule property could not be attached by defendant-1 as, at that time, it became the property of the plaintiff/firm and it was no longer the property of defendant-2. Hence, the plaintiff sought for injunction to restrain defendant-1 from proceeding with the matter.

(3.) The suit was resisted by defendant-1 on the ground that under S. 281 of the Income Tax Act, the sale was manifestly fraudulent and void as it was done with a view to evade the tax. Besides, it was contended that notice under S. 80 of CPC was not given and the Union Government was not made a party to the proceedings. Hence, the suit was not tenable.