Court modifies tax deposit from 20% to 10%, petitioner must comply within 45 days. Stay order contingent on deposit.

The Court modified the 20% tax deposit condition imposed on the petitioner in Ext.P7 order, replacing it with a 10% deposit requirement to be paid within 45 days. The petitioner was granted the benefit of the stay order subject to meeting this revised condition. Failure to comply would nullify the stay order. The Court directed the appeal to be disposed of within four months.

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Issues:
Challenge to Ext.P7 order imposing 20% tax deposit condition for stay petition.

Analysis:
The judgment involves a challenge to Ext.P7 order passed by the 2nd respondent, which imposed a condition on the petitioner to pay or deposit 20% of the total tax demanded for the assessment year in question. The petitioner contended that the condition was onerous and that Ext.P7 failed to consider the grounds urged by the appellant. The petitioner sought setting aside Ext.P7 and granting stay without imposing any condition. On the other hand, the respondents argued that the 2nd respondent's decision was justified, emphasizing that the condition was reasonable and necessary. They proposed either dismissing the writ petition or directing the appeal to be disposed of promptly with a different reasonable condition in place of the 20% deposit requirement.

The Court examined the arguments presented by both parties and found that while there was no apparent illegality in the 2nd respondent's exercise of discretion, the circumstances warranted a modification of the condition. The Court, therefore, substituted the 20% deposit condition with a 10% deposit requirement to be paid within 45 days from the judgment date. The petitioner was granted the benefit of the stay order subject to meeting this revised condition within the specified timeframe. Failure to comply with the condition would result in the presumption that the stay order was no longer in effect. Additionally, the Court directed the 2nd respondent to consider and dispose of the appeal within four months from the judgment date. Consequently, the writ petition was disposed of in accordance with these directions.

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