TMI Blog2012 (7) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... tration; has to be answered against the dealer and in favour of the Revenue. At this stage the petitioner has withdrawn the application to be adjudged as insolvent. It is for the petitioner to work out his remedies and apply for fresh registration or renewal of registration in accordance with law. Revision petition rejected. - O.T. Rev. No. 45 of 2012 - - - Dated:- 10-7-2012 - THOTTATHIL B. RASHAKRISHNAN AND VINOD CHANDRAN K., JJ. For the Appellant : P.N. Damodaran Namboodiri For the Respondent : Bobby John, Government Pleader, ORDER:- The order of the court was made by K. VINOD CHANDRAN J.- The petitioner herein was a registered dealer in the rolls of the Sales Tax Officer, Vadakara and engaged in the local ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed proceedings for cancellation of registration and effected cancellation by annexure AII. The petitioner then approached this court with W.P. (C). No. 10438 of 2009, which was dismissed. On appeal being filed, the Division Bench concurred with the view of the learned single judge in relegating the petitioner to the statutory remedy. On the prayer of the petitioner to permit him to continue registration, the Division Bench in its judgment allowed the same, however, on strict conditions in the following words: However, we feel the assessing officer should allow the appellant to retain registration pending disposal of appeal on the appellant remitting rupees five lakhs (Rs. 5 lakhs) towards arrears. The appellant is granted two weeks time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the liability of the petitioner was also consequently reduced. The property of the petitioner was proceeded against and sold. The petitioner himself withdrew the petition for adjudging him as insolvent, filed before the sub-court, Vadakara. However, the statutory remedies against the cancellation of the registration having been unsuccessful, the petitioner is in revision before this court. 4. The petitioner himself had obtained an order for continuation of registration from this court in writ appeal, but on condition of deposit of rupees five lakhs, which condition has not been complied with. Hence, when the matter came up for admission, we directed the learned Government Pleader to get instructions as to whether any arrears is subsis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluded the defaulted amount due to the State also in the schedule of debts. The properties, the petitioner is in possession of, are seen included in the schedule of assets. 6. The petition submitted by the petitioner herein, numbered as I.P. 1 of 2008, is produced herewith as annexure AIII. The said petition is submitted under section 7 of the Insolvency Act, 1955. Section 7 enables a creditor or a debtor, on the commission of an act of insolvency by the debtor, to file a petition for adjudication under the Act. The Explanation to section 7 deems the presentation of a petition by a debtor to be an act of insolvency. Section 13 speaks of the necessary ingredients which should be contained in a petition of a debtor under section 7. Sub-cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the competent court that all his assets would only be applied to his debts. Section 16(10) of the KVAT Act speaks of good and sufficient reasons for passing an order cancelling a registration. The very fact that a registered dealer had himself sought to be declared as an insolvent would disable that dealer from carrying on any further business which would necessarily involve money transaction and applying liquid and other assets of the dealer to the transactions in the business. That, according to us, is good and sufficient reason for cancellation of registration. The question of law regarding whether the filing of an insolvency petition by the debtor/dealer himself would disentitle the debtor/dealer from carrying on the business and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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