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2016 (2) TMI 857 - HC - Companies LawCompany in liquidation - interpretation of the words used in condition No.7 i.e. “the taxes in relation to property” and whether the said words include the sales tax liability of the company in liquidation or not - whether purchaser is required to pay all the taxes in relation to the property including all outstanding dues? - Held that:- Merely because this Court has observed in condition No.7 of the terms and conditions that the purchaser is required to pay all the taxes in relation to the property levied/leviable by the State Government or any local authority in relation to the company in liquidation, it does not mean that preferential payment from the sale proceeds be made to any Government Authority or any local authority over the other secured creditors, workers, etc. of the company in liquidation in contravention to the provisions of Section 530 of the Companies Act, 1956. Moreover, as observed above, as per the condition No.7 of the aforesaid order, the purchaser is required to pay all the taxes in relation to property and sales-tax is not the taxes in relation to the property. The sales tax dues of the company in liquidation for the year 1988 cannot be termed as the taxes in relation to the property. Further, when the respondent No.2 has already lodged its claim before the respondent No.1 – Official Liquidator in the year 1995, the same would be considered by the Official Liquidator as per the provision of Section 530 of the Companies Act and therefore the charge created by the respondent No.2 in respect of the land of the company in liquidation is required to be removed and the concerned revenue authority is required to make necessary entries in the revenue record entering the name of the applicant No.1 as purchaser of the land of the company in liquidation. Hence, the Mamlatdar, Anand is hereby directed to cancel the entry registering the so-called charge of Sales Tax Department as arrears of land revenue to ensure that the applicant No.1 gets free and clear marketable title qua the property of the company in liquidation purchased vide order dated 06.05.2004 passed in O.L.R. No. 22 of 2004
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