Alternative remedy bar limits writ interference against tax arrears recovery during pending sick company proceedings

Writ relief to restrain recovery of tax arrears was declined where proceedings under the Sick Industrial Companies (Special Provisions) Act, 1985 were already pending before the company court and the appellate authority. The court noted that the Board for Industrial and Financial Reconstruction had sent its opinion for winding up under Section 20(1), the company judge was seized of the matter, and the appellate authority was competent to grant the relief sought. In view of these alternative and appropriate forums, intervention under Article 226 was treated as unnecessary, and the petitioner was left to pursue the available remedy before the proper forum.

---

---

Issues: Whether the writ petition should be entertained to restrain recovery of tax arrears when proceedings under the Sick Industrial Companies (Special Provisions) Act, 1985 were pending before the company court and the appellate authority.

Analysis: The petitioner sought interference under Article 226 of the Constitution of India to defer recovery of old tax arrears on the footing that an appeal against the BIFR order was pending before the AAIFR and that proceedings under Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 operated as a bar. The Court noted that the BIFR had already sent its opinion for winding up under Section 20(1) of the said Act and that the company judge was already seized of the matter. The Court also noted the pending appeal before the AAIFR, which was competent to grant the relief sought. In these circumstances, the existence of alternative and appropriate forums made writ intervention unnecessary.

Conclusion: The writ petition was not entertained and the petitioner was left to pursue the available alternative remedy before the appropriate forum.

---