Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2013 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 213 - HC - Companies LawRehabilitation scheme - demand on account of water cess payable by the petitioner, imposing the penalty of equivalent amount as well as interest - Held that:- here in respect of an industrial company, amongst other things, a sanctioned scheme is under implementation then notwithstanding anything contained in any other law, no proceedings for execution, distress or the like against any of the properties of the industrial company or for the appointment of a receiver in respect thereof and no suit for the recovery of money or for the enforcement of any security against or of any guarantee in respect of any loans or advances granted to the industrial company is to lie or be proceeded with further except with the express permission of the BIFR or the AAIFR as the case may be. As decided in Rishabh Agro Industries Ltd. v. P.N.B. Capital Services Ltd. [2000 (5) TMI 954 - SUPREME COURT OF INDIA] that for successfully invoking the applicability of section 22 of the SICA, it has to be established that a sanctioned scheme is under implementation and it could not be said that despite the aforesaid situation the provisions of section 22 would not be attracted. Therefore, it is evident that the BIFR has permitted respondents Nos. 2 and 3 to accept the payment of water cess as based on actual discharge till the company was in operation as per past average. The payment has to be made over a period of 12 months from the date of sanction of the scheme and to waive the entire interest, penalty etc. This aspect has also been highlighted by the appellate authority in its order dated March 15, 2011 although it has been left to the wisdom of the assessing authority. Accordingly, the relief claimed by the petitioner is meritorious and deserves to be accepted even on this additional ground. The impugned order passed by the Assessing Authority for Cess-cum-Member Secretary, Haryana State Board for Prevention and Control of Water Pollution, under section 11 of the Water (Prevention and Control of Pollution) Cess Act, 1977 raising the demand of Rs. 8,16,851 on account of water cess payable is set aside. The respondents are directed to implement the rehabilitation scheme in so far as it concerns them and, as approved by the BIFR, vide order dated January 10, 2007 (P5). The needful shall be done within a period of one month from the date of receipt of a copy of this order.
|