STATE OF PUNJAB Vs. AMOLAK RAM KAPOOR

JUDGEMENT

(1.) THE Assessing Authority under the Punjab General Sales Tax Act, 1948, framed assessment of sales tax against Hosiery Industry Welfare Board, Ludhiana, a society registered under the Societies Registration Act, 1860, for the years 1973-74 to 1975-76. The said Board having become defunct the recovery of arrears of sales tax was sought to be effected from Amolak Ram Kapoor, ex-President of the said Board.

(2.) THE arrears of sales tax were being recovered as arrears of land revenue under the provisions of the Punjab Land Revenue Act, 1887. The suit was filed by Amolak Ram Kapoor and Kapoor Hosiery and Textiles, Panipat, for the grant of permanent injunction restraining the State of Punjab, Excise and Taxation Officer and the Tahsildar-cum-Assistant Collector, II Grade, Panipat, from realising the alleged sales tax arrears of the aforesaid Board from the plaintiffs alleging that they were not liable to pay the arrears of sales tax which were due from the aforesaid Board in their individual capacity. Along with the suit an application under order XXXIX, rules 1 and 2 read with Section 151 of the Code of Civil Procedure, 1908, for the grant of ad interim injunction during pendency of the suit, was filed. The arrears amounted to Rs. 81,687. 42 which were sought to be recovered. Sub Judge, I Class, Ludhiana, vide his order dated July 18, 1987, rejected the application for the grant of ad interim injunction. On appeal, the aforesaid order was set aside by the District Judge and ad interim injunction was granted as prayed during pendency of the suit. Hence this revision petition by the defendant, State of Punjab and others.

(3.) SHRI Anil Malhotra, Advocate appearing on behalf of the petitioners, has argued that the present suit was barred under the provisions of the Punjab General Sales Tax Act as well as the Punjab Land Revenue Act and thus their being no prima facie case in favour of the plaintiffs, ad interim injunction ought not to have been granted.