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2017 (3) TMI 1800 - HC - Income TaxRecovery proceedings - sale proceeds of the membership rights of the defaulting members - Petitioner's claim that the sale proceeds of the membership rights of the defaulting members, is subject to their prior rights in view of the income tax dues payable to it by Respondent No.2 (Mr. Khona and Mr. Dalal) and it is the case of the Respondent No.1 Exchange that the aforesaid amounts are in the nature of ex-gratia payments, being made to defaulting members - HELD THAT:- Provisions to Section 226(3) would not apply as it is neither a debt due from Respondent No.1 Exchange to the defaulting members (Mr. Khona and Mr. Dalal) nor according to them, is the Respondent No.1 Exchange holding the money on account of Respondent No.2 (Mr. Khona and Mr. Dalal). As further submitted that the payments are being made to the defaulting members, consequent to a resolution dated 13th October, 1999. This very resolution dated 13th October, 1999, was subject of consideration by the Apex Court in Bombay Stock Exchange v/s. B. S. Kandalgaonkar & Others [2014 (10) TMI 368 - SUPREME COURT] and the said amounts payable under the resolution, were held to be not attachable by the Income Tax Department. n the above view, interim relief in terms of prayer clause (c), in respect of which, all parties are adidem. Respondents are directed to deposit the amounts of ₹ 1,60,58,253 and ₹ 1,60,46,276/with the Prothonotary and Senior Master, High Court, Bombay, within a period of two weeks from today.
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