- (1.) We have heard Sri Dhruv Agarwal, Senior Advocate, assisted by Sri Nikhil Agarwal for the petitioner. Sri S.P. Kesarwani, learned standing counsel appears for respondent Nos. 1 to 5. Sri Suresh Chandra Srivastava, appears for respondent No. 6-State Bank of India. Sri Anuragh Khanna had intervened on behalf of Sri M.K. Modi and Shri S.D. Singh for Sri V.K. Modi. The rehabilitation of Modi Industries Ltd. is still pending with the Board of Industrial Finance and Reconstruction (BIFR). By an order dated March 12, 2007, a rehabilitation scheme was prepared, with cut-off date as June 30, 2007. The Commercial Tax Department, U.P., represented with an application dated February 14, 2007, to allow the recovery of current dues, on which the BIFR passed an order on March 26, 2008. The operative portion is quoted as follows : Having considered the facts on record, the Bench observed that in the hearing held on March 12, 2007, the Bench had directed the promoters of the company to submit fully tied up proposals jointly or severally, to IDBI (OA) within three months, in terms of honourable AAIFR order dated May 24, 2006. IDBI (OA) was directed to submit a fully tied up DRS to the Board within two months thereafter. The cut- off date of the scheme was to be taken as June 30, 2007. Notwithstanding the interim orders of status quo of the honourable AAIFR, the final cut-off date given by the Board continued to be June 30, 2007. 17.1. As per the standard guidelines of the Board for preparation of rehabilitation scheme, the company was required to be regular in the payment of all its current dues arising after the cut-off date, since the recovery of such dues was not covered in the proposed rehabilitation scheme. 17.2. The Bench observed from the company's audited balance sheet for 2006-07 that the company was working and paying the current statutory dues also. 17.3. Therefore, the Bench permits the Commercial Tax Department, Government of Uttar Pradesh to recover its outstanding dues, due after June 30, 2007, i.e., the cut-off date given by the Board vide its final order dated March 12, 2007 regarding preparation of the rehabilitation scheme. 17.4. The Bench further directs that a copy of this order along with the Board's proceedings of the hearings held on January 10, 2008 and February 13, 2008 may be sent to the honourable Supreme Court.
(2.) There is no dispute between the parties that the dues after June 30, 2007, are to be paid by the company, under the scheme.
(3.) In this writ petition, the petitioner is challenging the recovery and attachment orders dated August 10, 2009 and October 25, 2009, to recover Rs. 79,00,917 for the assessment year 1983-84 towards penalty, in pursuance of order under section 4B(6) and recovery of Rs. 13,12,793 towards tax liability plus interest for the assessment year 1986-87, in pursuance of the order under section 49(8) of the U.P. Trade Tax Act. The assessment orders were subject-matter of appeal. The appellate authority remanded the matter. The assessing authority vide order dated February 11, 2009 arrived at the same figure towards penalty, interest and tax dues.;