NEW KASHIRAM TEXTILE MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition is preferred under Article 226 of the Constitution of India to challenge the order dated 7 -3 -2006 and subsequent notice dated 29 -8 -2007 on the ground that they are against the principles of natural justice and violative of Article 14 and 19(1)(g) of the Constitution of India.

(2.) PROTECTION is sought against enforcement of recovery of excise dues of one M/s. Shree Bhavani Processors, who was a lessee in the property owned by the petitioner M/s. New Kashiram Textile Mills and another as the owner of the: property in question. Apart from the legal provision entitling the respondent to pursue such an action, there was a tripartite agreement between Bhavani Processors, Anchal Processors and the petitioner to the effect that Anchal Processors and the petitioner undertook to make good the excise liabilities of M/s. Shree Bhavani Processors.

(3.) WE have heard learned advocate Mr. Mehta for the petitioner. His bone of contention is that the respondent authorities are trying to recover the entire dues of M/s. Shree Bhavani Processors from the petitioner and are not taking any action against either Bhavani Processors or Anchal Processors. Provision contained in Section 146 of the Contract Act was heavily relied upon by learned advocate Mr. Mehta for the petitioner. According to him, the liability by virtue of the agreement would be only 1/2 and not the entire liability. Therefore, the respondent authorities cannot proceed to recover the entire dues of M/s. Shree Bhavani Processors from the petitioner. He even pressed into service the fact that the petitioner is being given unequal treatment and prayed for grant of parity with others.