C G SANGAMNERKAR Vs. SURESH CHANDRA MODI

JUDGEMENT

(1.) THIS application under section 482 of the Code of Criminal procedure has been made for quashing the proceedings before the Judicial magistrate First Class, Damoh, in Criminal Case No. 18 of 1978.

(2.) FACTS may be briefly stated; M/s United Transport Company were defaulters in the payment of income tax amounting to Rs. 79,100 for the assessment years 1950-51 to 1964-65. In recovery proceedings, Bus no. M. P. A. 362 was attached on 29-12-1976. The warrant of attachment of movables was issued under the seal and signature of the Tax Recovery officer C. G. Sangamnerkar (applicant No. 1 ). N. K. Kolhe (applicant No. 2), inspector of Income Tax, Jabalpur, was authorized to execute the warrant. He attached the said Bus by affixture of the warrant on its body, in the presence of witnesses, prepared an inventory and kept the bus in the custody of the local police. Suresh Chandra Modi, claiming to be the partner of M/s Development company, Damoh, objected to the attachment. He said that M/s Development Company was the owner of the vehicle though by some arrangement, the bus was being plied on the road permit issued in favour of M/s United transport Company. Such an arrangement, he said, was permissible under the Motor Vehicles Act. The objection was investigated by the Tax Recovery Officer under rule 11 of the II Schedule of the Income Tax Act, 1961. The Tax Recovery officer found that the bus belonged to the defaulters and not to the objectors. The order of the Tax Recovery Officer was challenged in appeal before the commissioner, Income Tax. The appeal was incompetent and was, there fore, rejected. Rule 11 (6) provided for a civil suit to establish right subject to the result of which the order of the Tax Recovery Officer was conclusive.

(3.) SURESH. Chandra Modi then filed a civil suit in the Court of Additional District Judge, Damoh. The question of ownership is still subjudice in order that the bus may not remain idle, the same has been released to m/s United Transport Company, the defaulters, and not to M/s Development company, the objectors. M/s United Transport Company have been directed to give security for the value of the bus and also to render true and honest accounts of the profits, the profits to remain in deposit in certain Bank. This interim order was confirmed by the High Court with some modification on 26-4-1977 in Civil Revision No. 435 of 1977.