2024 (11) TMI 1337

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....er assailing the action of the respondents in freezing his saving bank accounts maintained with Bank of Baroda, Manali Branch, Punjab National Bank, Chandigarh Branch, UCO Bank, Manali Branch with the purpose to recover the VAT dues of M/s East Bourne World Cuisine Private Limited, where the petitioner was a former director and prays for quashing the attachment notice dated 12.02.2021. 2. Learned counsel for the petitioner submits that recovery proceedings can be initiated in terms of specific provisions of the statute. There exists no particular provisions under the Punjab Value Added Tax Act, 2005 as extended to Chandigarh (hereinafter to be referred as 'the Act') whereby the liability of the private limited company can be fastened on ....

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....ught not to have been driven to the remedy of preferring an appeal. 9. Accordingly, the Appeal succeeds. The impugned judgments and orders of the learned Single Judge and the Division Bench are set aside. The notice of recovery dated 6th June, 2019 issued by the third respondent is hereby quash and set aside." 4. Learned counsel for the petitioner further submits that Section 83 (3) of the Act also similarly provides for liability of a director in case a company which is wound up and is pari materia to Section 12 of the Uttarakhand Value Added Tax Act, 2005, as noticed by the Supreme Court (supra). 5. Learned counsel for the respondent submits that the petition is pre-mature and the proceedings are to be taken against the com....

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....reflect that the recovery from the director of a company can only be made when such a company has been wound up. Even under the Companies Act, 1956, the provision for recovery from the director is not available at the stage prior to winding up of the company. 7. There is also no case of allegation of mismanagement of the company and in such circumstances also, the order would have to be obtained from the concerned NCLT. 8. Even earlier on 05.09.2024, we have directed the respondent to decide the appeal of the company which has not been decided even till date. Be that as it may, the aforesaid fact should not detain us from declaring the attachment of the saving accounts of the petitioner as bad in law as we find that it is a clear case....