Supreme Court Orders Deposit and Bank Guarantee, Parties Restrained from Coercive Recovery

The Supreme Court directed the petitioner to deposit Rs.2,500 crores and secure Rs.8,500 crores with a Bank Guarantee. Both parties were to provide undertakings and the Department was restrained from coercive recovery steps. The Court allowed amendments to the petition, set a final disposal date, and disposed of a related Special Leave Petition. The judgment clarified actions for the parties involved.

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Issues:
1. Deposit of a specific sum by the petitioner within a stipulated period.
2. Securing the balance amount by providing a Bank Guarantee.
3. Undertakings to be given by the Department and the petitioner.
4. Stay on coercive recovery steps by the Department.
5. Granting leave to amend the Writ Petition and urging additional facts.
6. Fixing a date for final disposal of the petition.
7. Disposal of a related Special Leave Petition.

Analysis:
1. The Supreme Court directed the petitioner to deposit Rs.2,500 crores with the Registry within three weeks and secure the balance of Rs.8,500 crores with a Bank Guarantee from a Nationalised Bank within eight weeks.

2. Both the Department and the petitioner were required to provide undertakings within eight weeks. The Department was restrained from taking coercive steps for recovering the outstanding demand until further orders.

3. The Court allowed amendments to the Writ Petition and the urging of additional facts, granting the Department eight weeks to file a comprehensive reply. The petition was scheduled for final disposal on 24th February, 2011.

4. A Special Leave Petition filed against an earlier order was disposed of in light of the current judgment, ensuring it would not survive. The Court's decision provided clarity on the related matters and actions to be taken by the parties involved.

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