RAMBALI BHULESHWAR Vs. SALES TAX OFFICER RECOVERY I BOMBAY

JUDGEMENT

(1.) This is a petition under Article 226 of the Constitution challenging the validity of the demand made against the petitioner for payment of Rs. 7,432-65 and giving notice that in default of such payment the amount will be recovered as arrears of land revenue.

(2.) The relevant facts are as follows :- Prior to April, 1957, one Govindsharan Mawawala and one Nepalsingh Jawaharsingh carried on business in partnership with each other in the firm name and style of Messrs Govindram Ramsharan Mawawala at 532, Duncan Road, Bombay. The shop of the firm appears to have been obtained on sub-tenancy. By a notice dated 22nd April, 1957, the Collector of Bombay notified that the partnership firm had failed to discharge the liability in respect of the sum of Rs. 16,582-83 payable in respect of arrears of sales tax dues for the period upto 31st March, 1951, and 1st April, 1951 to 12th December, 1955, and penalty and income-tax dues for the years 1950 to 1954, which amount together with process fee of Rs. 48 came to Rs. 16,630-83. He gave notice under section 13 of the Bombay City Land Revenue Act that the concern known as Messrs Govindram Ramsharan Mawawala situate at 532 Duncan Road, would be sold by public auction with its goodwill and sub-tenancy rights and all movables. Under clause (8) of the conditions of sale it was mentioned that the purchaser would be put into possession of the property as soon as possible after the auction is confirmed, and that the auction sale was of right, title and interest of the partnership firm with stock-in-trade and movables including goodwill and sub-tenancy rights in realisation of government dues (sales tax and income-tax).

(3.) At the auction sale held on 20th May, 1957, the petitioner became purchaser. The sale was confirmed by an order dated 10th June, 1957, and a certificate of sale evidencing that the sale was in realisation of arrears of sales tax and income-tax dues and that the sale was of the goodwill and sub-tenancy rights along with movables of Govindram Ramsharan Mawawala and Nepalsingh Jawaharsingh was issued to the petitioner.