ARUN KUMAR SAWHNEY Vs. STATE OF U.P.

JUDGEMENT

(1.) We have heard Sri Praveen Kumar, learned counsel for the petitioner. Learned standing counsel appears for the respondents. Sri Arun Kumar Sawhney, S/o. Late Dharam Bir Sawhney and Sri Kailash Nath Agarwal, S/o. Late Sri Kundan Lal Agarwal, as directors of M/s. Rajinder Alloys Ltd., District Kanpur--a public limited company, with its registered office at "Tube House", 79/21 Latouch Road, Kanpur, have challenged the recovery of trade tax dues against the company and the notices served upon on them on March 28, 2004 for the assessment year 1999-2000.

(2.) A sum of Rs. 3,78,544 and further sum of Rs. 5,95,698 and interest from February 6, 2002 at 18 per cent per annum is sought to be recovered vide recovery notice by attachment, sale or arrest of the petitioners as directors of the company.

(3.) Sri Praveen Kumar, learned counsel for the petitioners, submits that the company suffered business losses, and referred itself for registration as a sick industrial company under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985, with the Board of Industrial and Financial Reconstruction (BIFR). The company was registered as Case No. 159 of 1997. The BIFR, after making enquiries, found that there are no chance of rehabilitation, and referred it for winding up to the High Court. The company filed an appeal before the Appellate Authority for Industrial and Financial Reconstructions (AAIFR). We are informed that the AAIFR registered the appeal as Case No. 216 of 2004, and remanded the matter back to the BIFR. It is stated in para 3 of the writ petition that the matter of rehabilitation of the company is pending before the BIFR, and the next date fixed by the BIFR was March 24, 2011. The counsel appearing for the petitioners is not aware about the current status of the proceedings.