Attachment of Cash Credit or Overdraft untenable as bank doesn’t become a debtor: Himachal Pradesh HC

Kundlas Loh Udyog  Vs Union of India and others (Himachal Pradesh High Court) Himachal Pradesh High Court held that attachment of account like Cash Credit or Overdraft by exercising powers conferred under section 226(3) of the Income Tax Act untenable as bank doesn’t become a debtor. Facts- The petitioner deals in the work of Iron and Steel for which it purchases raw material and thereafter manufactures the final products as per the demand. As per the petitioner, it has the bank accounts in the nature of “Over Cash Credit” (OCC Account)/ “Cash Credit (CC)” with HDFC bank (respondent...