IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SEVENTEENTH DAY OF JUNE TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 10142 of 2008 Between: M/s Tirupati Cotton Mills, (A Unit of Natinal Textile Corporation Limited) Renugunta, Rep by its Assistant Manager(Accounts), G.Someshwer Rao,S/o. Rama Rao, aged about 52 years. ..... PETITIONER AND 1 The Commercial Tax Officer-III, Tirupati, 2 The Appellate Deputy Commissioner(CT), Kurnool Division, KURNOOL .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate writ, order or direction more particularly in the nature of writ of Mandamus declaring the action on the part of the first Respondent namely the Commercial Tax Officer, Circle-ii, Tirupati, in seeking to enforce , demand and collect interest from petitioners Sick Industrial company during pendency of the reference application before the Board for Industrial Finance and Reconstruction , New Delhi in case No.534/92 as illegal, improper, arbitrary, without authority of Law, without jurisdiction and ultravires Section 22 of the sick Industrial Companies (Special Provisions) Act 1985 as also contrary to the Law laid down by the Hon'ble Supreme Court in 86 STC 41 and this Hon'ble Court in 43 APSRJ 46. Counsel for the Petitioner:MR.M.V.J.K.KUMAR Counsel for the Respondents.: SPECIAL STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION No:10142 OF 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is filed seeking to declare the action of the first Respondent namely the Commercial Tax Officer, Circle-ii, Tirupati, in seeking to enforce, demand and collect interest from petitioners Sick Industrial company during pendency of the reference application before the Board for Industrial Finance and Reconstruction, New Delhi in case No.534/92 as illegal, improper, arbitrary, without authority of Law, without jurisdiction and ultravires Section 22 of the sick Industrial Companies (Special Provisions) Act 1985 as also contrary to the Law laid down by the Hon'ble Supreme Court in 86 STC 41 and this Court in 43 APSRJ 46. It is the case of the petitioner that questioning the proceedings of the 1st respondent levying the interest for the belated payment were questioned before the 2nd respondent and the 2nd respondent set aside the same by applying the judgment of the Apex Court. But however, the 1st respondent again issued proceedings dated 4.12.2007 levying interest, and challenging the said proceedings, the petitioner approached the 2nd respondent. Along with the said appeal, the petitioner also filed a stay petition, but the same was rejected. Having aggrieved by the same, the present writ petition has been filed. Heard the learned Counsel for the petitioner and the learned Standing Counsel for Commercial Tax and perused the material available on record. In view of the facts and circumstances of the case and without expressing any opinion on the merits of the case, We feel that it is a fit case wherein stay can be granted subject to certain conditions. Accordingly, there shall be stay of recovery of the disputed amount, pending disposal of the appeal before the 2nd respondent, subject to the condition of the petitioner paying 25% of the interest, on or before 30th August, 2008. On such deposit, the appeal shall be disposed of within a period of six months thereafter. Subject to the above direction, the writ petition is disposed of. No order as to costs. _______________________ Justice T. Meena Kumari ____________________________ Justice Ramesh Ranganathan Date: 17th June, 2008 Nn/Gurc. THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 10142 of 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 17.6.2008