SANTOSH KUMAR SAHU Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) WE have heard Sri R.P. Agarwal, the learned counsel for the appellants, Sri Govind Krishna, learned advocate and Sri Bharat Ji Agarwal, learned senior advocate for the IT authorities.

(2.) PURSUANT to our order passed on 8th Jan., 2001, Sri Bharat Ji Agarwal, the learned senior advocate appearing for IT authorities has filed counter-affidavit in this case. He submits that he has obtained instructions pursuant to Court's order dt. 8th Jan., 2001 and he has been instructed to point out that the appellants were not the directors at the relevant time. In the view of the matter the order passed by the learned Single Judge directing that a proceeding be initiated against the appellants appears to be uncalled for and there is no basis for the same. The observations made against the IT Department also appear to us that learned Single Judge has unnecessarily commented on the action of the IT authorities and the observations made by the learned Single Judge which are reproduced below should stand deleted :

(3.) IN the result the observations made by the learned Single Judge against the appellants, herein, to the extent noted above, stand set aside and are also expunged. The proceeding initiated pursuant to the order of the learned Single Judge against the appellants shall stand withdrawn. It is, however, made clear that this order shall not prevent the IT authorities to proceed with the proceeding against the erstwhile directors.