https://www.taxtmi.com/caselaws?id=98306 A writ petition challenging recovery notices was maintainable where the grievance was against enforcement of demand notices, not the underlying assessment orders, and the pending statutory appeals did not furnish an equally efficacious remedy. In the context of a sanctioned compromise under Section 391 of the Companies Act, 1956, the term "creditor" was applied in a wide winding-up sense and included contingent or future tax claims arising before assessment. The sales tax department was therefore bound by the scheme and could not recover more than the percentage fixed under it. The recovery notices were held unlawful because the company's liability stood restricted by the sanctioned scheme. en-us Mon, 15 Mar 1965 00:00:00 +0530 Fri, 20 Jan 2012 11:16:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98306 A writ petition challenging recovery notices was maintainable where the grievance was against enforcement of demand notices, not the underlying assessment orders, and the pending statutory appeals did not furnish an equally efficacious remedy. In the context of a sanctioned compromise under Section 391 of the Companies Act, 1956, the term "creditor" was applied in a wide winding-up sense and included contingent or future tax claims arising before assessment. The sales tax department was therefore bound by the scheme and could not recover more than the percentage fixed under it. The recovery notices were held unlawful because the company's liability stood restricted by the sanctioned scheme. Case-Laws Companies Law Mon, 15 Mar 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98306