Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2014 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 826 - HC - Companies LawWinding up of company - Bar of limitation - Whether the issuance of ‘C’ Form under the Central Sales Tax Act constitutes an acknowledgment of the subsisting liabilities as well as the jural relationship giving fresh life of limitation under Section 18 of the Limitation Act - Held that:- though, a Form “C” certainly indicates the existence of jural relationship at some point of time, of seller and purchaser, it does not acknowledge the existence, in praesenti of a debtorcreditor relationship or the existence of a liability on the date of the making/execution of the Form “C” - where the Transfer of Property Act was not in force, and this Court had affirmed the judgment of the Punjab High Court determining the claim of the redeeming co-mortgagor for contribution against the non-redeeming co-mortgagors on principles of justice, equity and good conscience. The plea of limitation is one of the defence available to the other side which is well-recognized in law. Section 18 can be pressed when there is a valid acknowledgment of the subsisting liability and not the past liability. The words used in the acknowledgment must sufficiently indicate the circumstances of the jural relationship as that of her debtor and creditor and there must be a manifest intention to admit such jural relationship. The object behind the issuance of the Sales Tax Declaration Form is to avail of the reduce rate of sales tax. The Declaration Form does not require to contain the statements relating to the payments already made or to be made but can at best be a best piece of evidence relating to the contract of sale and the goods being sold and delivered at a price agreed upon. The letter which contains the Declaration Form does not indicate the acknowledgment of the liability as well as the admission of the existence of a jural relationship. There is no express intention of the Company to acknowledge the liability in a letter containing the Declaration Form. The present matter can be viewed from another angle as well. The petitioning creditor have grossly suppressed the fact that subsequently an agreement was entered into between the parties whereunder it was agreed that a sum of ₹ 29 lakhs, if paid by the Company, would satisfy the outstanding dues. Admittedly, the said sum of ₹ 29 lakhs had been paid by the Company - Court, therefore, does not find that the Company should be wound up and, therefore, orders that the Company Petition shall remain permanently stayed - Stay granted.
|