Bombay High Court
MR. DALCHAND H. GUPTAversusMR. ARUN KUMAR AGARWAL and OTHERS
- Decided
- Disposal
- DISPOSED OFF
Holding
The court held that there was no merit in calling further records and consequently disposed of the notice of motion.
Summary
In an insolvency petition filed by creditors against the debtors, the judgment debtor sought an adjournment and the production of a statement from the Income Tax Office under Section 131 of the Income Tax Act, 1961. The court refused the adjournment, noting that it had already indicated that orders would be passed based on the existing record. The debtor also contested a decree in a summary suit that was based on consent terms, arguing the terms were unacceptable, but the appeal against that decree had been withdrawn. The court found no merit in calling further records from the tax authority and therefore disposed of the notice of motion. It reiterated that the debtor may forward the tax investigation statement to the creditor, who may reply, and scheduled the matter for adjudication on 16 October 2026.
Issues considered
- Whether the judgment debtor is entitled to an adjournment of the proceedings.
- Whether the court should call for further records from the Income Tax Office under Section 131 of the Income Tax Act, 1961.
- Whether the decree in the summary suit based on consent terms is acceptable to the debtor.
- Whether the withdrawal of the appeal affects the necessity of further proceedings.
Legislation cited
- Income Tax Act, 1961 — s. 131
Subjects
- insolvency
- notice of motion
- adjournment
- Income Tax Act
- Section 131
- summary suit
- consent terms
- appeal withdrawal
Judgment
48 Inpt-7-2017.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
IN ITS INSOLVENCY JURISDICTION
INSOLVENCY PETITION NO. 7 OF 2017
ALONGWITH
NOTICE OF MOTION NO. 29 OF 2018
Dalchand H. Gupta And Ors. ...Petitioning
Creditors
Vs.
Arun Kumar Agarwal And Ors. ...Judgment
debtors/Insolvent
*****
Ms. R. V. Rane – Insolvency Registrar – Present
Adv. Kushan Kode i/by Adv. B. Shroff – Advocate for Debtor
*****
CORAM : S. M. MODAK, J.
DATE : 23rd SEPTEMBER 2026
P. C. :-
NOTICE OF MOTION NO. 29 OF 2018
1. Heard learned advocate for the judgment debtor. He seeks some
accommodation. Unfortunately, I am not with him in granting
adjournment. It is for the reason on 10.07.2026, this Court has already
observed that the appropriate orders on the basis of the available record
will be passed.
Digitally signed
2. He submitted that the Notice of Motion pressed for calling the
by SEEMA
SEEMA KSHITIJ
YELKAR
KSHITIJ Date:
YELKAR 2026.09.28
15:31:11
+0530
Seema 1/2
48 Inpt-7-2017.doc
record from the Income Tax office about the statement made by Ajay
D. Gupta-Defendant No. 4 under Section 131 of the Income Tax Act,
1961.
3. The submission is the concerned decree in Summary Suit was
passed on the basis of the consent terms and this consent terms are not
acceptable. However, on inquiry it is also submitted that the appeal
filed by him was withdrawn.
4. In view of that there is no merit in calling further record. Hence,
Notice of Motion is disposed of.
5. My attention is invited to the order dated 16.06.2025 passed by
this Court. The judgment debtor was permitted to forward the
photocopy of the statement made during investigation before the
income tax authority to the petitioning creditor and petitioning
creditor was permitted to file reply. It is submission that it is forwarded
but there is no response. Such right is kept open.
6. Matter be listed for adjudication on 16th October 2026.
[S. M. MODAK, J.]
Seema 2/2
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