Tikaram Sharma Vs Joint Commissioner (Calcutta High Court)
Summary: The Calcutta High Court devised an interim workable arrangement concerning a disputed CGST demand of Rs.75,40,424 against Tikaram Sharma, a government contractor working for the State Government. Three garnishee notices dated August 21, 2025 had resulted in restraints over the petitioner’s bank accounts, allegedly preventing payment of labour, contractors and statutory and non-statutory business liabilities. The Revenue submitted that the demand should remain secured because recovery could become difficult if the pending writ petition were ultimately dismissed. Balancing the competing interests, the Court directed the petitioner to require all debtors to deposit amounts payable to him into a specified account maintained with HDFC Bank, Kalimpong Branch. The bank was directed to set apart Rs.75,40,424, and the petitioner was prohibited from operating that account until the full amount was credited and secured. After the disputed demand was set apart, the petitioner could operate the specified account beyond the reserved amount, while all liens and restraints on his other bank accounts would stand released. Accordingly, the Court set aside the three garnishee notices dated August 21, 2025 and directed the petitioner’s debtors to deposit the amounts into the identified account. The Court expressly clarified that the arrangement was interim, without prejudice to the parties’ rights and contentions, and did not express any opinion on the merits of the pending writ petition. I.A. No. CAN 5 of 2026 was disposed of without costs.
