H C SHASTRI Vs. DOLPHIN CANPACK PRIVATE LIMITED

JUDGEMENT

(1.) A letter bearing No. TRO-15/96-97/99 addressed to the Registrar has been put up before the Court. Let this letter be registered as an Interim Application.

(2.) Learned Standing Counsel for the department urged that there is an outstanding recovery to the extent of Rs. 7,27,926.00 from M/s. Dolphin Canpack Pvt. Ltd. He submitted that since a sum of Rs. 50 lakhs has been deposited by M/s. ASP Investments limited, defendant No. 3 in the main suit, the dues of the revenue to the extent of Rs. 7,27,926.00 be satisfied first and the amount to that extent, out of the sum of Rs. 50 lakhs should not be released to any party. By the said letter the Tax Recovery Officer also purported to exercise the powers under Section 226(3) of the Income Tax Act, 1961.

(3.) Arguments on whether the revenue could claim a lien on the amount of approximately Rs. 13 lakhs, lying in the Court were heard on 14.3.1997 when orders were reserved. By this order, I propose to decide the request made by the Department.