MAHADEV ENTERPRISES Vs. STATE OF M P

JUDGEMENT

(1.) THE petitioner-M/s Mahaveer Enterprises is a proprietorship concern and has approached this Court challenging a notice dated January 30,2002 issued under section 146 of the M.P. Land Revenue Code whereby the property purchased by the petitioner from M.P. Financial Corporation has been attached and sealed.

(2.) THE facts leading to the controversy may be noticed as follows - M/s. Prominent Cement Limited (hereinafter referred to as borrwer-Company), a Company incorporated under the Companies Act, engaged in the manufacture of cement, had obtained financial assistance from M.P. Financial Corporation-respondent No. 3. The property of borrower-Company was mortgaged as security for the repayment of the loan. The borrower-Company never repaid the loan and became a defaulter and was ultimately registered under the Sick Industrial Companies Act, 1985 with Board for Industrial and Financial Reconstruction (BIFR) on March 11,1998.

(3.) IT further appears from the record that earlier on May 12,1988 an order had been passed by the Commercial Tax Officer attaching the property of the erstwhile borrower-Company on the ground that the aforesaid borrower- Company was defaulter of the commercial tax. On the aforesaid attachment order, an objection was raised by M.P. Financial Corporation through a communication dated January 18,2002, bringing the detailed facts to the notice of the Tax Department and maintaining that since the property in question of the borrower-Company was already mortgaged and the matter was before BIFR, therefore, the attachment of the property of the said borrower-Company could not be effected. On the objection raised by MPFC, the Commercial Tax Department did not take any further steps.