B K NOWLAKHA Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in this writ petition is to the search and seizure which was effected at the premises of the petitioners under the provisions of Section 132 of the Income Tax Act, 1961 and to the continuation of the order under Section 132(3) in respect to the property, materials and stocks which were in existence at the time of the search of the petitioner's premises.

(2.) Petitioner No. 1 is stated to be an individual carrying on business of dealing in handicraft items at premises No. B-55. Greater Kailash-I New Delhi. Petitioner No. 2 is a partnership firm carrying on business under the name and style of M/s. Sundaram.

(3.) On 11th February, 1991, pursuant to an authorisation which was issued by the Director (Investigation), the aforesaid premises were searched. During the course of the search, the respondents found a number of articles which, according to the respondents, included some articles which were antique pieces. No seizure was effected but the respondents purported to pass an order under Section 132(3) of the Act restraining the petitioners us well as the partners of the firm and their family members from operating or removing or dealing with the stock or other valuable articles or things lying in the premises. The entire room in which the stocks were lying, was sealed and restraint orders were passed against some saving bank accounts.