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Gram Panchayat And Anr vs Shree Vallabh Glass Works Limited And ... on 15 March, 1990

25. The decision of the Supreme Court in Gram Panchayat v. Shree Vallabh Glass Works Ltd., on appeal from the decision of the Bombay High Court in Shree Vallabh Glass Works Ltd v. State of Maharashtra, strongly relied upon for the company, is clearly distinguishable. There the Gram Panchayat, Salwad, initiated coercive proceedings under section 129 of the Bombay Village Panchayats Act, 1958, for recovery of Rs. 9.47 lakhs odd towards property tax and costs of an appeal due from the company. If the company did not pay the amounts, the Gram Panchayat was entitled to resort to the provisions of sub-section [7] and sub-section [8] of section 129 of the Bombay Gram Panchayats Act, 1958. In that context, the Supreme Court observe [see page 173] that it may be against the principles of equity if the creditors are not allowed to recover their dues from the company, but such creditors may approach the Board for permission to proceed against the company. In our view, the above observations made in the context of recovery of property tax and other dues by coercive processes of recovery against the properties of the company cannot be applied to a case of non-supply of electricity in the future by the electricity board.
Supreme Court of India Cites 16 - Cited by 132 - K J Shetty - Full Document
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