Madras High CourtWP/36063/2003allowed

S.Kumar, v. The Commercial Tax Officer,

2017-07-07Honourable Mr Justice T. S. Sivagnanam3 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATE: 07.07.2017

CORAM

THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM W.P.No.36063 of 2003 and W.P.M.P.No.43781 of 2003 S.KUMAR [ PETITIONER ] Vs 1 THE COMMERCIAL TAX OFFICER ARIYALUR, PERAMBALUR DISTRICT.

2 THE THASILTHAR VEPPANTHATTAI, PERAMBALUR TALUK PERAMBALUR DISTRICT.

[ RESPONDENTS ] Prayer: Writ Petition filed under Article 226 of the Constitution of India, seeking for a Writ of certiorari against the respondents calling for the records culminated in the proceedings in RC.No.4915/99/A3 dated 25.08.2003 on the file of the Commercial Tax Officer, Ariyalur, Perambalur District and to quash the same as illegal, arbitrary, void and not in accordance with the law relating to the properties comprised in Survey No.322/1, Malayalapatti Vilalge, Perambalur Taluk and District of total extent 5 acres.

For Petitioner : Mr.A.Thiagarajan, Senior Counsel for Mr.R.Sundaram For Respondents : Mr.K.Venkatesh, GA

O R D E R

Heard Mr.A.Thiagarajan, learned Senior Counsel for Mr.R.Sundaram, learned counsel for the petitioner and Mr.K.Venkatesh, learned Government Advocate for the respondents.

2. The petitioner is a Director of a Private Limited Company, under the name and style of M/s Balamurugan Refineries

Private Limited. The present writ petition has been filed challenging the auction sale notice, bringing the petitioner's own property for sale, for recovery of the sales tax arrears of the Company.

3. According to the petitioner, the Company has become defunct as early as in the year 1988 and the properties have been taken over by the Tamil Nadu Industrial Investment Corporation and the liability of the Director is limited and therefore question of proceeding against the petitioner's individual property does not arise.

4. Earlier, the petitioner filed a writ petition in W.P.No.7569 of 1993, challenging the notice issued by the Deputy Commercial Tax Officer, Ariyalur. Though, it was contended that the Government has power to initiate proceedings against the Director of the Company in default, that legal question was gone into in the earlier writ petition and the same was disposed of by order dated 09.03.2000, stating that the earlier recovery notice cannot be given effect to, with liberty to issue fresh proceedings.

5. When admittedly the property in question is an individual property of the Director and the liability is being limited insofar as the Private Limited Company is concerned, the question of proceeding against his property would not arise. Therefore, this Court, prima-facie satisfied, and while admitting the writ petition granted an order of interim stay, with liberty to the respondents to proceed against M/s Balamurugan Refineries Private Limited in respect of tax liability.

6. In the light of the above, the writ petition is allowed and the impugned order is set aside with liberty to the respondents to proceed against M/s Balamurugan Refineries Private Limited in respect of tax liability. No costs. Connected miscellaneous petition is closed.

Sd/- Asst.Registrar (CS V ) /true copy/ Sub Asst. Registrar rg To 1 THE COMMERCIAL TAX OFFICER ARIYALUR, PERAMBALUR DISTRICT.

2 THE THASILTHAR VEPPANTHATTAI, PERAMBALUR TALUK PERAMBALUR DISTRICT +1cc to Special Government Pleader (Taxes)sr.47633 W.P.No.36063 of 2003 ss(19/7/2017)