P P DE AND CO Vs. STATE

JUDGEMENT

(1.) This is an application on the part of Messrs. M. L. Mallick and D.N. Das who are the liquidators of Messrs. P. P. De & Co. Ltd. for an order that all attachment and certificate proceedings initiated for realisation of income-tax and sales tax be stayed and for an order setting aside the attachment and execution put in force against the estate and effects of the company for realisation of income-tax and sales tax and for other reliefs. The company went into voluntary liquidation by a special resolution of the members on 7-3-1949.

(2.) It appears that the Union of India and the State of West Bengal are claiming large sums on account of income-tax and sales tax respectively and they seek to realise their claim by execution and attachment of the properties of the company. The notice of motion was served upon the Union of India, the Income-tax Officer, Companies District I and the Commercial Tax Officer, Central Section, West Bengal. The notice of this application was not served upon the State of West Bengal, but Mr. Samaren Sen who is instructed by the solicitor to the State of West Bengal appeared on behalf of the State and waived service of the notice of motion and I have proceeded upon the footing that the State of West Bengal is adequately represented in these proceedings.

(3.) The question whether and under what circumstances the petitioners are entitled to restrain the respondents from realizing their claims by execution and attachment has been very much debated before me.