Recovery Officer Can't Attach Taxpayer's Overdraft Account With Banks By Exercising Power U/s 226(3): Himachal Pradesh HC Quashes Attachment Order

Observing Cash Credit account or overdraft is capable of being attached u/s 226(3) of Income tax Act, the Himachal Pradesh High Court turned down the decision of Tax recovery officer in passing the order of attachment of Cash Credit Account. Explaining the relationship between debtor & creditor, the High Court clarified that bank does not become a debtor to its customers and cannot hold money for account of its customers merely because it has provided a facility of overdraft to...

Negotiable Instruments Proceeding Under Section 138 Does Not Abate On Initiation Of Insolvency Proceeding: Himachal Pradesh High Court

In a significant judgement delivered by the Himachal Pradesh High Court, the personal liability of the accused under the Negotiable Instruments Act was upheld in spite of the insolvency proceedings initiated under the Insolvency and Bankruptcy Code (IBC). Brief Facts Tushar Sharma (accused) and his wife Smt. Shaveta Sharma applied for a house loan to the tune of Rs. 2 crores which was approved and granted on January 24, 2015. The loan amount was secured by mortgaging a property with...