WINDSON ELECTRONICS PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This batch of petitions raises common question of fact and law with an insignificant variation. In all these cases the petitioners herein have prayed for a writ of mandamus commanding respondents Nos. 1 to 6 to restrain from appropriating and/or withdrawing any amount lying in favour of the petitioners from respondent No. 7 and further in particular appropriating and/or withdrawing any amount in respect of the several managers' cheques all dated February 19, 2004. Further direction has been sought for commanding respondents Nos. 7 and 8 to honour the managers' cheques issued by City Bank drawn in favour of the petitioners as and when presented.

(2.) The common grievance of the petitioners is that despite presentation of the managers' cheques, the bank authorities are not honouring because of the preventive and obstructive action being taken by the Revenue authorities. The petitioners and each of them at an earlier point of time came to this court for identical grievance challenging a prohibitory order dated February 20, 2004, issued under Section 132(3) of the Income-tax Act, 1961 (hereinafter referred to as the said Act). These first writ petitions were moved on April 19, 2004 and on April 20, 2004, the aforesaid writ petitions were disposed of as the said prohibitory order under Section 132(3) had lost its force because of efflux of statutory period. As such the challenges were not maintainable as being infructuous.

(3.) In these present writ petitions because of the bank's refusal to honour the said managers' cheques on account of issuance of fresh prohibitory order under Section 132, Sub-section (3) of the said Act and for wrongful and forcible demand for encashment of the said cheques and making over proceeds thereof to them.