HARSHAD SHANTILAL MEHTA vs CUSTODIAN — C.A. No. 5326/1995

Case Summary: Harshad Shantilal Mehta v. Custodian (C.A. No. 005326/1995) The Supreme Court interpreted Section 11 of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992, governing distribution of attached properties from the 1992 securities fraud scandal. The Court held that tax liabilities must be "finally assessed" to be payable under Section 11(2)(a), limited to taxes arising during the statutory period (April 1, 1991–June 6, 1992), and excluding penalties and interest. The Court granted Special Courts discretion to scale down disproportionate tax demands using proportionality principles, while banks' claims remain prioritized thereafter under Section 11(2)(b). This case analysis is maintained by casestatus.in based on publicly available court records.