JUDGMENT

Satish Chandra J. - The four petitioners were partners of a firm called "Standard & Co." at Kanpur. On 27-12-63, the firm was dissolved and reconstituted. The four petitioners retired from this firm. Other partners continued the business of the firm in the same name. The erstwhile firm was assessed to sales-tax for the period 1st April 1963 to December, 1963. The assessment order and the notice of demand were served upon one C. R. Sethi who was at that time accountant of the continuing firm. In the due course recovery proceedings were initiated against the four petitioners. They have challenged the recovery proceedings principally on the ground that they had been served with any notice of demand, they are not defaulters and coercive measures to recover the sales-tax dues could not be launched against them.

2. The respondents have relied upon a letter of authority executed by K. L. Raizada, one of the partners of the new firm saying :

"We hereby appoint Sri C. R. Sethi as our authorised representative for the year 1963-64. He is fully authorised to file or receive or sign any statement or document regarding this case. All their actions shall be binding on us."

3. u/s 3-C of the