Coercive recovery restrained while appeal remained pending and stay-extension application was undecided.

Coercive recovery was restrained where the appeal against the assessment had been reserved for orders and the application for extension of stay remained pending. The court noted the assurance recorded on behalf of the respondents that the impugned notice would not be acted upon until the appellate proceedings or the stay-extension request was decided. Protective directions were therefore issued, keeping recovery in abeyance pending disposal of the appeal or the pending stay application.

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Issues: Whether coercive recovery could be pursued when the appeal against the assessment was reserved for orders and the application for extension of stay was still pending.

Analysis: The notice threatened recovery action despite the fact that the appellate authority had already reserved the appeal for orders and the request for extension of the interim stay had not yet been decided. In view of the pending appellate proceedings and the assurance recorded on behalf of the respondents that the impugned notice would not be acted upon until the appeal or stay-application was decided, the writ petition was disposed of with protective directions.

Conclusion: Coercive action pursuant to the impugned notice was kept in abeyance until disposal of the appeal or the pending stay-extension application, in favour of the petitioner.

Final Conclusion: The petitioner obtained interim protection against recovery action pending the appellate decision and the stay application.

Ratio Decidendi: Where an appeal is reserved for orders and an application for extension of stay remains pending, coercive recovery may be restrained until the appellate authority decides the matter.

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