Allahabad Bank vs Commissioner Of Sales Tax And ...
1987 Latest Caselaw 523 Del

ORDER

S.B. Wad, J.

1. The respondent Nos. 4 to 7 have withdrawn the amount from the petitioner-bank on the overdraft facility by pleading cars, trucks and other vehicles as a security with the bank. The respondent No. 1, the Commissioner of Sales Tax, had also a large claim on account of sales tax dues against the said respondents. Eventually, under the order of this Court some vehicles were attached by respondent No. 1 and the same were sold under the order of the court and the amount was deposited with the petitioner-bank. The main dispute in this petition is between the claim of the petitioner and respondent No. 1. The petitioner claims the entire amount with interest on the ground that the cars in question had become their property under the contract. The amount with interest has now become double and the amount available for the claimants is Rs. 14,36,595.27 with interest up to 15th November, 1987. The Petitioner bank is a nationalised bank and respondent No. 1 is a department of the administration. In the interest of justice, I order that the petitioner bank will be entitled to Rs. 7,08,040.51 and the balance amount, namely, Rs. 7,28,554.76 will fall to the share of respondent No. 1. The amount of Rs. 7,08,040.51 is invested in the F.D.R. which is held by respondent No. 1. The F.D.R., according to the counsel for the respondent No. 1, is maturing in the month of January, 1988. The respondent No. 1 shall surrender the said F.D.R. to the bank after its maturity and within a week of the presentation the entire amount of Rs. 7,28,554.76 shall be paid to the respondent No. 1. The petitioner-bank shall also pay the interest accrued on the said amount from today till the actual payment. With this order, the Civil writ petition is disposed of. There will, however, be no order, the civil writ petition is disposed of. There will, however, be no order as to costs.