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Gupta Iron and Steel Re-rolling Mills and Fabricators Vs. Amar Steel Industries and ors. - Court Judgment

SooperKanoon Citation
SubjectDirect Taxation
CourtPunjab and Haryana High Court
Decided On
Case NumberCivil Revision No. 2748 of 1990
Judge
Reported in[1992]196ITR116(P& H)
ActsIncome Tax Act, 1961 - Sections 220
AppellantGupta Iron and Steel Re-rolling Mills and Fabricators
RespondentAmar Steel Industries and ors.
Advocates: Ashok Gupta, Adv.
Excerpt:
.....& a.s. naidu, jj] writ appeal held, a writ appeal shall lie against judgment/orders passed by single judge in a writ petition filed under article 226 of the constitution of india. in a writ application filed under articles 226 and 227 of constitution, if any order/judgment/decree is passed in exercise of jurisdiction under article 226, a writ appeal will lie. but, no writ appeal will lie against a judgment/order/decree passed by a single judge in exercising powers of superintendence under article 227 of the constitution. .....august 3, 1990, whereby the objections filed on behalf of the judgment-debtor were dismissed. the decree-holder, messrs. amar steel industries, sought execution of a money decree against messrs. gupta iron and steel recoiling mills and fabricators, amloh. in that execution application, ojections were filed that the amount sought to be recovered by way of execution already stands attached by the income-tax department and the judgment-debtor was paying the said amount to the income-tax department by way of an agreement in instalments. a sum of rs. 50,000 was paid as lump sum and, later on, some instalments were agreed to between him and the income-tax department. it was, therefore, prayed that the execution application was liable to be dismissed. one of the issues was whether the amount.....
Judgment:

J.V. Gupta, C.J.

1. This petition is directed against the order of the executing court dated August 3, 1990, whereby the objections filed on behalf of the judgment-debtor were dismissed. The decree-holder, Messrs. Amar Steel Industries, sought execution of a money decree against Messrs. Gupta Iron and Steel Recoiling Mills and Fabricators, Amloh. In that execution application, ojections were filed that the amount sought to be recovered by way of execution already stands attached by the Income-tax Department and the judgment-debtor was paying the said amount to the Income-tax Department by way of an agreement in instalments. A sum of Rs. 50,000 was paid as lump sum and, later on, some instalments were agreed to between him and the Income-tax Department. It was, therefore, prayed that the execution application was liable to be dismissed. One of the issues was whether the amount of decree has already been attached by the decree-holder and, if so, its effect The executing court did find that the amount of decree has already been attached by the Income-tax Department and that the judgment-debtor has already paid a sum of Rs. 50,000 in lump sum and was now paying monthly instalments of Rs. 10,000. However, at the same time, the objection petition was dismissed as not tenable because, in case the decree-holder succeeds in getting the amount, it will still remain attached with the Income-tax Department and the decree-holder will pay the arrears in lump sum and the Income-tax Department can get the same back.

2. Learned counsel for the petitioners submitted that this approach of the executing court was wholly wrong and erroneous. Since the decretal amount already stands attached, the decree holder has no right to execute the decree. Moreover, the attached decretal amount is already being paid by the petitioner to the Income-tax Department and, therefore, the objection petition has been dismissed arbitrarily.

3. After hearing learned counsel, I find merit in this petition. Since the decretal amount already stands attached at the instance of the Income-tax Department, the execution application was not maintainable, particularly when the judgment-debtor was paying the attached amount to the Income-tax Department. Consequently, this petition succeeds, the impugned order is set aside and the objections filed on behalf of the judgment-debtor are allowed with no order as to costs.


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