(1.) The petitioner No. 1 presently is a sick company under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. The petitioner No. 2 claims to be the Director of the company. He verified the affidavit in support of the writ petition. Affidavit of competency duly filed by the petitioner No. 2.
(2.) The contention of the writ petitioners is that the BIFR sanctioned a scheme for revival of the petitioner company by an order dated 30th June, 2000. On 5th April, 1999 an Act being West Bengal Sales Tax (Settlement of Disputes) Act, 1999 came into force. Consequently, respective Rules came into force on 12th July, 2000. Under the order of the BIFR the scheme has been provided grant soft loan by the Government of West Bengal to cover disputed Sales Tax which is under appeal, if the company are ordered to pay at concessional rate of interest prescribed in the incentive scheme of 1999. On 4th December, 2000 the petitioner requested the appropriate respondent to grant sales tax loan. On 3rd September, 2001 State Government sanctioned loan for a sum of Rs. 734 lakhs (Rupees Seven crores thirty four lakhs only) through the West Bengal Industrial Development Commission to pay the admitted arrear taxes. On 3rd September, 2001 itself the petitioner made an application for exemption of stamp duty which is payable for exemption of bond which is required before availing the said loan of Rs. 734 lakhs.
(3.) In between 2nd November, and 27th December of 2001, the petitioners filed 23 applications under section 5 of the West Bengal (Settlement of Disputes) Act, 1999. Such applications were made before the appellate authority. According to the learned counsel appearing for the Sales Tax Authority, on 27th December, 2001 the State Government passed order of exemption of stamp duty payable on bond to be executed by them. 31st December, 2001 was the last date for filing application as well as payment for admitted sales tax dues as per the aforesaid Act. Two days before, on 29th December, 2001 the petitioner No. 1 company wrote a letter to the Additional Commissioner of Commercial Tax as the applications filed by the petitioner under the Act and are pending, they are required to pay a sum of Rs. 1,30,43,678/- (Rupees One crore thirty lakhs forty three thousand and six hundred seventy eight) only as admitted tax but since the State Government has not disbursed the loan, the said applications may be kept pending considering that the petitioner No. 1 is a sick company. After various correspondence and after execution of the bond in between State Government and the West Bengal Industrial Development Corporation on 25th February, 2002, the petitioner receive a letter from Industrial Reconstruction Department to the effect that the Commissioner of Commercial Tax is not agreeable to receive the said amount of Rs. 1,30,43,678/- against payment of admitted tax. The said Commissioner has asked entire amount of Rs. 734 lakhs due and payable in this account. Incidentally it is necessary to state hereunder, the petitioner wanted to pay a further sum of Rs. 72,65,820/- (Rupees Seventy two lakhs sixty five thousand and eight hundred twenty) only in addition to s. 1,30,43,678/- totalling to Rs. 2,03,09,498/- (Rupees Two crores three lakhs nine thousand four ninety eight) only.