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2017 (10) TMI 918 - HC - Companies LawDirections to the Official Liquidator to issue instructions to Axis Bank to release in favour of the applicant 98.181879% of the amount received from Madhya Pradesh Excise Department (MPED) lying in Escrow account - Held that:- The circumstances reveal the work was actually completed by the applicant herein and the role of the respondent company was merely to obtain the contract from Madhya Pradesh Government and to hand it over to the applicant. The principal employer recognized the applicant to be responsible for completion of the contract and even the Income Tax Authority did not attach the share of the applicant lying in the escrow account as the respondent could hold on to the money lying in the escrow account only to the extent of its legal title being 1.181821%; the Axis Bank being a trustee was thus obliged to release the balance amount lying in the escrow account in favour of the applicant herein. The liquidation would not come in the way of the applicant to receive the amount to the extent of its share to which it is entitled, per the teaming agreement(s) referred to above. In view of the above observations, the application is disposed of. The amount to the extent of 98.181879% lying in the escrow account be released to the applicant within a period of four weeks from today.
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