NAND KISHORE SINGH Vs. STATE OF BIHAR

JUDGEMENT

(1.) IN this writ petition the petitioners have assailed the validity of the entire certificate proceeding in Certificate Case No. 259 St. 74. -75, 26 -ST of 1964 -65 initially started against their father Sarjug Prasad for realisation of Rs.25,600/ - as Sales Tax dues of the State of Bihar.

(2.) IT is contended by Mr. Verma, learned counsel for the petitioners, that Sarjug Prasad was declared insolvent under the provisions of Insolvency Act, 1920 by the 2nd Additional District Judge, Patna in Pauper Case No.1 of 1964 vide Annexure -1 to the writ petition. As such, according to him, in view of the provisions contained in Section 29. of the said Act, this certificate proceeding pending against the debtor Sarjug Prasad cannot legally proceed for adjudication and is fit to be finally dropped. Mr. Verma, submitted that in any view of the matter the continuance of such a proceeding against the petitioners was not permissible in law unless the Certificate Officer would have given notice to them as required under Section 52 of Bihar and Orissa Public Demands Recovery Act, 1914 (hereinafter to be referred to as 'the Act') which was not complied.

(3.) LEARNED counsel appearing for the respondent State of Bihar and its officials submitted that section 29 of the Insolvency Act does not contemplate for dropping of the proceeding finally. It only contemplates that the court in such case should either stay the proceeding or allow it to continue on such terms as the court may impose.