C.V. CHERIAN Vs. C.A. PATEL

JUDGEMENT

(1.) The only question that arises for determination in this writ application under article 226 of the Constitution of India is whether for the purpose of recovery of sales tax dues under the Gujarat Value Added Tax Act and Gujarat Sales Tax Act against a private limited company, the personal property belonging to the managing director of such company can be attached and sold for realisation of the dues against the company. After hearing the learned counsel appearing for the parties and after going through the affidavit filed by the State-respondent, it appears that it is not the case of the State that the property in question at any point of time belonged to the company nor is it the case that the managing director is holding property as "benamdar". In that view of the matter, we find substance in the contention of the learned counsel Mr. Kaji appearing on behalf of the petitioner that the attachment and proposed auction of the residential building No. 56, Near Hanuman Temple, Valinath Mahadev Road, Kalol, was on the face of it without jurisdiction (See Division Bench decision of this court dated June 17, 2004 passed in Special Civil Application No. 243 of 1991 with Special Civil Application No. 3103 of 1991 and Special Civil Application No. 7578 of 1991, in the case of Choksi v. State of Gujarat). We, thus, find substance in this application and consequently quash the notification dated January 24, 2012 for holding the auction of the residential property No. 56, Ward No. 8B; City Survey No. 86 and Property No. 8/17/22/2/2, Near Hanuman Temple, Valinath Mahadev Road, Kalol. The respondents are restrained from attaching or selling any private property of the managing director of the company for realisation of the aforesaid dues. This order, however, will not stand in the way of the respondents in proceeding against the property of the company itself.

(2.) With above observations, the writ application is disposed of. There shall be, however, no order as to costs.