( 1 ) THE two petitioners were the Directors of M/s. Drill Rock Engineering Company (P) Ltd. Secundcrabad, from 15-9-1976 till 1-7-1984. On 1-7-1984 they have resigned from the Board of Directors of the said company. The Company was distributor for M/s. Consolidated Pneumatic Tools Company India Limited for their compressors and pneumatic tools. For the assessment years 1978-79 to 1988-89 thecompany was due income-tax to the Department of Income-Tax. There was also settlement before the Settlement Commission under the Income-Tax Act. The Board of Directors who assumed office after the resignation of the petitioners agreed before the Settlement Commission for total tax liability of Rs. 64,27,371. 00 for the assessment years 1978-79to 1988-89. Pursuant to the agreement before the Settlement Commission proceedings were initiated for recovery of the said amount against the Company and the said proceedings are pending. However, by the impugned proceedings dated 10-2-1998 the Assistant Commissioner of Income-tax issued a notice under Section 179 of the Income-Tax Act proposing to recover the amount of Rs. 64,27,371. 00 from the petitioners. Hence the writ petition.

( 2