UNION OF INDIA Vs. TATA MILLS LTD

JUDGEMENT

(1.) This appeal is directed against a judgment and order passed by the learned trial judge on the 30th November and 2nd December, 1970, respectively, in an application made by the Union of India in Suit No. 890 of 1967 (Tata Mitts Ltd. v. Gulab Chand Dhanraj) (hereinafter referred to as the said suit) for directions for, inter alia, stay for sale of the premises No. 1, Vivekananda Road, Calcutta (hereinafter referred to as the " said premises "), and all proceedings taken by all the judgment-creditors to obtain payment by sale and attachment of the said premises and, alternatively, for an order directing the Sheriff of Calcutta to pay to the petitioner certain sums prior to making any payment to judgment-creditors.

(2.) The said suit was filed in this court on the 25th April, 1967, by Tata Mills Ltd. against the defendants for a decree for a sum of Rs. 72,142.56 with interest and for other reliefs. The defendant No. 1 was a partnership firm and the other defendants were the partners thereof. On the 21st September, 1967, a decree was passed in the said suit against the defendants Nos. 1, 2, 4 and 5 for Rs. 70,672.74 with interest. On 11th of March, 1968, a decree was passed in the said suit against the defendant No. 3 only for Rs. 69,172.74 with interest. In execution of the said decree an order was made, on the application of the plaintiff-decree-holder, directing the Sheriff of Calcutta to sell by public auction the undivided right, title and interest of the defendants-judgment-debtors Nos. 2, 3 and 4 in the said premises. The said premises thereafter was attached and put up for sale by public auction by the Sheriff of Calcutta. Prior to the sale of the said property an application was made by the Union of India praying for the reliefs mentioned hereinabove. No ad interim order was passed staying the sale of the said premises and the same was sold during the pendency of the application and the sale proceeds are now lying in the hands of the Sheriff of this court.

(3.) The notice of motion in respect of this application was taken out on behalf of the Union of India on the 10th of October, 1969, under the following circumstances as would appear from the said application and the subsequent affidavit. It was stated that the defendant No. 1 is a partnership firm. The other defendants were the partners thereof. It was alleged by the Union of India that the said firm was assessed as a registered firm under the Income-tax Act, 1961 (hereinafter referred to as the "said Act"), for the assessment years 1962-63 and 1963-64 and the income-tax payable by the firm was determined to be Rs. 45,741.42 and Rs. 33,604, respectively.