R.K.AGARWAL, J. - (1.) By means of the present writ petition i.e. Civil Misc. Petition No. 488 of 1996, the petitioner M/s. Modi Industries Ltd. Modi Nagar, district Ghaziabad seeks a writ, order or direction in the nature of certiorari quashing the impugned demand notice dated 5-7-1996 (contained in Annexures-7 and 8 to the writ petition). The petitioner further seeks a writ of mandamus restraining the respondents, that servants, employees or agents from recovering in any manner, the amount of Rs. 34,90,195.20 p. in pursuance of the impugned demand notice dated 5-7-1996.
(2.) The facts in brief are that the petitioner, which is a Public Ltd. Company incorporated under the provisions of the Companies Act, has its registered office at Modinagar in the district of Ghaziabad. It has 9 Units, namely, Sugar, Steel rods, wire, Vegetable, Electrodes, Gases, Chemicals Distillery, Soap, Paints and lanterns. The petitioner possessed and owned vast properties at Modinagar. The respondent No. 1, i.e. Nagar Palika, Modi Nagar is a statutory authority. It is improved to levy house tax under the provisions of the U.P. Municipalities Act. It assessed the annual market value of the buildings located within its jurisdiction for a period of 5 years. It appears that the petitioner became a sick company under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as the Act). It applied to the Board of Industrial and Financial Re-construction (hereinafter referred to as the 'BIFR') constituted under aforesaid Act. The BIFR vide order dated 14-3-1991 declared the petitioner as sick and formulated a Scheme for its rehabilitation. However, later on the BIFR formed an opinion that the petitioner cannot be rehabilitated and prima facie it is satisfied that the petitioner should be wound up. Accordingly, the BIFR by order dated 8-10-1993 directed the2 issuance of public notice under Sec. 20 of the Act for consideration of objection/suggestion or alternative proposal, if any, in respect of the petitioner company. The relevant portion of the order dated 8-10-1993 passed by BIFR is reproduced below :"In the circumstances, no viable scheme can be formulated for MIL's revival. Banks and financial institutions have categorically ruled any further increases in their exposure to MIL, in the face of the above mentioned inability refusal of the Modis. As all efforts to formulate any scheme for revival of MIL have failed, and there is no alternative to winding up the company under Sec. 20 of the SICA.Accordingly, the Bench directs issue of public show cause notice (s) under Sec. 20 of the Act fixing 14-12-1993 at 12.15 PM for consideration of objections/suggestions or alternative proposals, if any, in respect of the Sick Industrial Company, Modi Industries Ltd., by anyone concerned, which should reach the Board latest by 30-11-1993"
(3.) It has further been stated by the petitioner that the aforesaid order dated 8-10-1993 passed by the BIFR was challenged before this Court by Bhartiya Kisan Union, being Civil Misc. Writ Petition No. 45214 of 1993. On 10-12-1993 a Division Bench of this Court stayed further proceedings in Case No.151 of 1990 with regard to Modi Sugar Mills pending before BIFR. The said order was made operative by this Court initially till 18-2-1994. However, subsequently, the stay order passed on 10-12-1993 had been extended from time to time and now it is operative till further orders. It may be pointed out that the petitioner consists of 9 Units. This Court stayed the proceedings before BIFR only in respect of Modi Sugar Mill's i.e. one of the units. The said writ petition is still pending.;