Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Assessee in default Provincial Insolvency Act 1920 Income Tax Act 1961 Article 372 Constitution of India |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961:s.226(3) - Assessee in default of income tax - Such assessee, also declared a defaulter member of Stock Exchange - Priority over debts owed by defaulter member to Stock Exchange and Income Tax Department - Held: Membership card is only a personal permission from Stock Exchange to exercise the rights and privileges that may be given subject to Rules, Bye-Laws and Regulations of Stock Exchange - Therefore, the proceeds of a membership card cannot be paid over to Income Tax Department for the dues of the members -As regards securities deposited with Stock Exchange, the lien possessed by Stock Exchange makes it a secured creditor and, as such, it would have priority over Government dues - Provincial Insolvency Act, 1920- s. 2( e) - Securities and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 - s.2(zf) - Constitution of India, 1950-Art. 372 - Securities Contracts (Regulation) Act, 1956- ss. 8 and 9- Rules framed under- rr. 5, 9, 16(iii) and 43 - Subordinate legislation. |
Judge | Hon'ble Mr. Justice R.F. Nariman |
Neutral Citation | 2014 INSC 678 |
Petitioner | The Stock Exchange, Bombay |
Respondent | V. S. Kandalgaonkar & Ors. |
SCR | [2014] 14 S.C.R. 409 |
Judgement Date | 2014-09-25 |
Case Number | 4354 |
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