TaxTMI 
TaxTMI 
1996 (10) TMI 4
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..... S. No. 1 of 1964, was filed for division of the properties by metes and bounds among the sharers, an attempt was made by the State to have the estate attached for recovery of the tax dues. Pursuant to an agreement between the parties, the court passed an order avoiding attachment and directed the joint Commissioners to recover the dues from the estate and pay over the same to the income-tax and other Government dues. On an application, the final decree was passed on July 15, 1967, in which the appellants had purchased a 4/13ths share. In the final decree proceedings for recovery of dues of the State certain properties came to be identified and ultimately Devi Vilas Palace was also agreed to be sold by order of the court dated January 28, ....
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....Court. The learned single judge further directed the trial court to consider the matter in the light of the direction issued by this court in the special leave petition. The appellants also filed an application under Order 21, rule 90, of the Civil Procedure Code, to set aside the sale. All these matters were heard together and by order dated August 16, 1995, the executing court rejected the objections to the sale and extended time for payment of the balance amount. The matter was then carried in revision to the High Court and the High Court dismissed the revision petitions. Thus, these appeals by special leave. Shri D. D. Thakur, learned senior counsel for the appellants, has contended that it is clear from the record that the arrear....
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....alth-tax, etc. Since that procedure was not followed and rule 9 of the Rules being a bar to the jurisdiction of the civil court, the proceedings taken for recovery of the amount were without authority of law. We find no force in the contention. Section 222 and Schedule II are relatable to the procedure to be adopted by the Tax Recovery Officer for recovery of arrears of tax from the assessee or the estate of the assessee. In this case, the Tax Recovery Officer had not proceeded under the Act. It is seen that when an attempt was made by the State, as stated earlier, to proceed against the estate, by consensus and consent of the parties, the property was directed to be sold to liquidate the arrears due to the State. The income-tax and other d....
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....er 6, 1995, an amount of Rs. 5,15,000 and odd was still due and recoverable from the estate. It is then contended that since the property is a valuable property and was sold for a meagre amount, this court may interfere and direct the appellants to pay interest on the 1/4th amount deposited and also some compensation to the auction-purchaser. Having considered the contention, we find on the facts in this case that it would not be justifiable on the part of the court to interfere with the sale. It is seen that on the earlier occasion, the executing court had unsuccessfully limited the sale inter se between the parties. This court in the first round of the present litigation, by several orders tried to save the estate but the same proved f....