Judgment

UNTWALIA, J.:- This is an appeal by certificate from the Order of the High Court of Punjab and Haryana dismissing the appellants writ application in limine. Sandhu Transport Company (Private) Limited is a private limited company. The two appellants were its directors. One of them was a Managing Director. A resolution was passed on the 13th November, 1961 for a voluntary liquidation of the company at the instance of its creditors. In respect of some years ending with the assessment year 1964-65 a huge amount of income tax to the tune of Rupees 1,34,319 remained due from the company. The Income-tax Officer issued a notice on 7th of February 1970 against appellant No. 2 under Section 179 of the Income-tax Act 1961, hereinafter called the Act, to show cause why action should not be taken against the directors of the company for realisation of the arrears of income-tax due from the company. A similar notice was issued to appellant No. 1 on the 11th of November, 1970. Both the appellants filed their show cause before the Income-tax Officer mainly taking the stand that since the company had gone into liquidation before the Act had come into force, action under Section 179 could no