PUNJAB NATIONAL BANK Vs. STATE OF H.P.

JUDGEMENT

(1.) THIS is a writ petition filed by the petitioner for issuance of directions restraining respondents from affecting sale of the immovable property of respondent No. 4 for recovery of alleged arrears of sales tax as well as for quashing Section 16 B of the Himachal Pradesh General Sales Tax Act, 1968 (referred to as Sales Tax Act), being ultravires of the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, (referred to as Banking Act).

(2.) BRIEFLY stated the facts of the case are that in August, 1984, respondent No. 4 company was sanctioned term loan of Rs. 12.85 lakhs and working capital loan of Rs. 9.70 lakhs on 3.1.1985 which was sanctioned by the petitioner bank for manufacturing of carpets. Respondents No. 5 and 6 stood as guarantors for the loan. The loan account of respondent No. 4 company became irregular in the year 1990 and was transferred to the protested account category on 29.10.1990 with a debit balance of Rs. 33.20 lakhs. A suit for recovery of Rs. 42.29 lakhs was filed on 26.2.1992 by the petitioner bank against respondents No. 4 to 6. The suit was transferred to the Debt Recovery Tribunal, Jaipur and a consent decree was passed on 12.11.1998 in favour of the petitioner bank and against respondents No. 4 to 6. Pursuant to the said decree, respondent No. 4 deposited Rs. 50,000/ on 13.8.1998 but did not make the balance payment as per the decree. The bank proceeded with execution of recovery certificate for an amount of Rs. 2,65,97,162.50 before the Debt Recovery Tribunal, Jaipur on 14.5.1999, which execution of recovery certificate was transferred to Debt Recovery Tribunal, Chandigarh on 2.11.2000. and the proceedings are pending there.

(3.) IT was further alleged that a sum of Rs. 4,31,18,676.00 is due from respondents No. 4 to 6 to the petitioner bank and the Tribunal had fixed the sale of mortgaged property of respondent No. 4 for 14.2.2000 with the reserve price of Rs. 50 lakhs, which was reduced to Rs. 30 lakhs. The fresh value of the property was submitted before the Tribunal and the Recovery Officer has not fixed any date for sale of the mortgaged property. In the mean while, a notice was issued by the Collector cum Assistant Excise Commissioner, Solan (Respondent No. 2), in 'The Tribune' dated 12.2.2000 for auction of the mortgaged property of respondent No. 4 as mentioned above. The date of auction was fixed for 3.3.2001. Thus, it was alleged that the said property of respondent No. 4 is being put to auction by respondent No. 2 for recovery of alleged arrears of sales tax amounting to Rs. 32,72,365/ and are being recovered as land revenue arrears under the H.P. Land Revenue Act, 1953. An application was submitted by the petitioner bank before the Recovery Officer, Debt Recovery Tribunal Chandigarh for stay of the sale by respondent No. 2.