JOGMOHAN BAHL Vs. EXCISE AND TAXATION OFFICER

JUDGEMENT

(1.) The petitioner impugns a recovery proceeding by which the respondent i.e. Excise and Taxation Officer-cum-Assessing Authority, Rewari, Haryaya sought to enforce a bond for the recovery of dues under the Haryana General Sales Tax Act (hereafter called "the State Act").

(2.) The brief facts necessary for deciding this petition are that one M/s. J.B. Paper Mills Ltd. made a reference under Section 15(1) of the Sick Industrial Company (Special Provisions) Act, 1985. The company was declared sick by the BIFR on 14.9.1989. In the meanwhile, the first respondent issued a warrant of attachment of the company's properties to realise its dues under the Sales Tax Act on 21.10.1989. The petitioner issued a surety bond on 25.10.1989 undertaking to pay Rs. 9.50,000/- towards Sales Tax liability of the company. At this stage, it would be relevant to extract the material conditions of the said bond which inter alia is in the following terms:

(3.) The first respondent sought to take coercive measures against the company, to realise its Sales Tax dues. The action was impugned before the Punjab and Haryana High Court being Writ Petition No. 2520/1990. By its order dated 29.5.1990, that High Court rejected the writ petition, directing the respondent to decide the issue within a period of two months by passing a speaking order. Consequently, the first respondent issued an order on 28.7.1990. A copy of that order is part of the record; it records that the sales tax arrears, both (State and Central) of approximately Rs. 36,20,600/- were pending and due as on 31.3.1990 from the firm/company.