- (1.) BY means of this writ petition, the Petitioners are seeking a writ of certiorari or any other appropriate writ, order or direction for quashing the recovery proceedings against the personal assets of the Petitioners and further proceedings pursuant thereto, as well as seeking a writ of mandamus commanding Respondents and restraining them from recovery proceedings against the Petitioners.
(2.) THE facts of the case in brief are that the Petitioners were directors in M/s. Piyarey Lal Rajendra Kumar, 45, Fatehganj, Buland Shahar, a company registered under the Companies Act, 1956. They had resigned from the directorship of the company and had sold their shares. Form No. 32 have also been filed by the company in the office of the Registrar of Companies. Certain amount as well as interest thereon was raised as an outstanding demand against the company (both U.P. and Central). The Respondent No. 1 -Trade Tax Officer, Sector I, Bulandshahar directed the Petitioner to deposit the aforesaid amount and also issued certificates against the Petitioners for recovery of the said amount. The Petitioners raised objection before the Respondent orally but to no avail. It is alleged that the recovery proceedings against the Petitioners are illegal and without jurisdiction.
(3.) THE stand of the Respondents as disclosed in the counter -affidavit of S.C. Jaiswal, Assistant Commissioner, Sector 1, Bulandshahar, is that the present recovery proceedings relate to the trade tax dues against the company and the amount of trade tax dues is being sought to be recovered. It has been admitted that the Petitioners were directors of the company at the relevant point of time. The assessment orders under the provisions of the U.P. Trade Tax Act, 1948 as well as under the Central Sales Tax Act, 1956 were passed. The Petitioners did not deposit the tax assessed by the assessing authority and hence the recovery certificate had been issued in accordance with law. It is further alleged that Petitioner No. 4 -Chhajju Mal (since deceased) had given his security for the payment of tax up to the extent Rs. 35,000. The amount of personal security of late Chhajju Mal can be recovered from the assets of late Chhajju Mal which has been inherited by his legal heirs and representative. The sole controversy involved in this writ petition is whether the tax dues from the corporate body can be recovered from the assets of the directors of corporate body. Undisputedly, the Petitioners were directors of the company and dues are against the company. The question is whether such dues can be recovered from the personal assets of the directors of the corporate body.;