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2017 (8) TMI 865 - HC - Indian LawsProceedings before BIFR - sick industrial company - recover the petitioner's pending dues directly from the petitioner's bank account - Held that:- Consequent to a company being a sick industrial company under section 3(1)(o) of the Act, all proceedings for execution, distress or the like against any of the property of a sick company would automatically be suspended and could not be taken without the consent of the Board. It was held that in such a case, gram panchayat could not have recovered the property tax and other amount of dues from the company by initiating coercive proceedings under section 129 of the Bombay Village Panchayats Act, 1959, without the consent of the Board. The fact that the impugned demand notices seek to coercively recover the petitioner's pending dues directly from the petitioner's bank account is not possible to be disputed. The fact that no consent of the BIFR was obtained by the department when they carried out such steps is not in dispute. That being the position, we cannot upheld the action of the department. If at all the department would have to move the BIFR for appropriate order or reliefs, either permitting recovery or taking into account the dues of the department at the time of preparation of the scheme in case of the petitioner company. Our findings and observations are based on the premise that the proceedings before the BIFR are still pending. If however, it is found that the same have been disposed of, it would be open for the department to proceed further in accordance with law.
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