2004 (11) TMI 44

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....direction as this hon'ble court may deem fit and proper in the circumstances of the case. Exhibit P 6 is a notice issued under section 226(3) of the Income-tax Act, 1961, demanding an amount of Rs. 38,50,000 from out of the amount, if any, payable by the Federal Bank to the petitioner. The Federal Bank is the tenant in occupation of the building owned by the petitioner. Exhibits P 7 and P 8 are similar notices issued to other respondents/tenants. The contention of the petitioner is that it is a sick industry registered under the provisions of the Sick Industrial Companies (Special Provisions) Act and an appeal from the order passed by the Board for Industrial and Financial Reconstruction under the SICA is pending before the appellate aut....

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....i P.K. Ravindranatha Menon, contended that recovery of any amount due under the Income-tax Act or Wealth-tax Act cannot be a distress proceeding coming within the ambit of section 22 of the said Act. In this connection, it has to be noticed that not only a distress proceeding but also no execution or the like against any of the properties of the industrial company shall lie except with the consent of the Board or, as the case may be, by the Appellate Authority. Admittedly, the present proceedings as per exhibits P 6 to P 8 are initiated for realisation of the amount in execution of the order of assessment, passed by the respondent. In this connection, the apex court in Gram Panchayat v. Shree Vallabh Glass Works Ltd. [1991] 71 Comp Cas 1....