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2002 (10) TMI 77 - MADRAS HIGH COURTA director of Pilot Pen Company (India) Private Ltd., the company under liquidation has filed the above application seeking a direction to the first respondent-official liquidator, High Court, Madras, to remit the admitted liability of Rs. 95,57,921 after waiving the demand for interest and penal interest claimed by various creditors. - All the above decisions clearly show the power of the company court under section 446(2)(b) of the Companies Act, 1956, which overrides any other law more particularly section 220(2) of the Income-tax Act, 1961. The only restriction is that the court has to satisfy on the facts of a particular case that the claim for statutory interest under the Income-tax Act would amount to hardship, cause grave miscarriage and injury to the contributories. - am of the firm view that this is a fit and proper case where the claim of the income-tax authorities for interest/penal interest should not be allowed, as this court has ample power to waive under section 446(2)(b) of the Companies Act, 1956, read with rule 9 of the Companies (Court) Rules, 1959. - In the light of what is stated above, the official liquidator is permitted to remit the admitted liability of Rs. 6,94,122 excluding the demand for interest and penal interest. It is made clear that the present order is confined to the demand for interest and penal interest in respect of income-tax liability of the company under liquidation.
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