BARANAGORE JUTE FACTORY PLC. MAZDOOR SANGH (BMS) ETC. versus BARANAGORE JUTE FACTORY PLC. ETC.

BARANAGORE JUTE FACTORY PLC. MAZDOOR SANGH (BMS) ETC. versus BARANAGORE JUTE FACTORY PLC. ETC.

Refund received from Income-Tax Department was part of compensation for acquired land which the court intended to protect, and appropriation of such refund without leave of court was in violation of order dated 23.02.2011. Division Bench was wrong in holding otherwise and interfering with the order for securing the refund amount.

Parties
Appellants: Baranagore Jute Factory PLC Mazdoor Sangh (BMS) etc.; Respondents: Baranagore Jute Factory PLC etc.
Jurisdiction
India
Judgment Date
21 March 2017
Procedural Posture
Civil Appeal / Appeal From Division Bench of High Court of Calcutta
Outcome
appeals allowed
Legal Topics
Violation of Court Order, Restitutive Measures, Compensation Protection, Income Tax Refund Appropriation
Company Law Contempt of Court Violation of Court Order Restitutive Measures Compensation Protection Income Tax Refund Appropriation

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Parties

Baranagore Jute Factory PLC Mazdoor Sangh (BMS) etc.

Appellants

Baranagore Jute Factory PLC etc.

Respondents

Procedural Posture

Civil Appeal / Appeal From Division Bench of High Court of Calcutta

Legal Issues

  1. 1 Whether appropriation of income-tax refund by respondents was in violation of court's order dated 23.02.2011
  2. 2 Whether division bench was justified in interfering with single judge's order to secure refund amount

Ratio Decidendi

Refund received from Income-Tax Department was part of compensation for acquired land which the court intended to protect, and appropriation of such refund without leave of court was in violation of order dated 23.02.2011. Division Bench was wrong in holding otherwise and interfering with the order for securing the refund amount.

Court Disposition

appeals allowed

Orders

  • Respondents shall not operate bank accounts of the company after 03.04.2017 without securing an amount of Rs.8,32,60,331/-.
  • Without leave of the High Court, fixed deposit of Rs.2,23,00,000/- with Axis Bank shall not be withdrawn.