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Judgment
M/s. Bal Pharma Limited is seeking to quash the attachment notice dated 9-9-2003 passed by the second respondent in terms of Annexure-E.
Petitioner is a dealer under the Karnataka Entry Tax Act, 1979. He is in arrears of tax payable as a dealer. Recovery proceedings were initiated by the respondents State. Respondents have now issued a notice under Section 9 of the Karnataka Entry Tax Act, 1979. Same is challenged before me.
Petitioner states in these petitions that the amount lying in the Bank is only on account of overdraft facility and is not belonging to the petitioner. He says that no proceedings can be initiated in respect of overdraft facilities.
At my instance, Ms. Niloufer Akbar, learned High Court Government Pleader, accepts notice for the respondents 1 and 2.
Heard the learned Counsels for the parties and perused the material placed on record.
It is well-settled that recovery proceedings insofar as attachment of Bank accounts are concerned is available only as against the amounts belonging to the account holders. Overdraft facilities are made over to the petitioner by the Bank and that facility cannot be attached as held by Courts of law.
In the circumstances, I deem it proper to dispose of these petitions thereby restricting Annexure-E only to any amount other than the overdraft facilities. Liberty is also reserved to the respondents to ascertain the correctness of amounts in the Bank and proceed in accordance with law in terms of this order. It is made clear that if any amount other than overdraft facility is available, liberty is reserved to the Government to attach the same in terms of Section 9 of the Karnataka Entry Tax Act, 1979.
Ms. Niloufer Akbar, learned High Court Government Pleader is permitted to file her memo of appearance within four weeks.