TMI Blog1996 (7) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019 of 1995 came to be filed and was dealt with by a learned single Judge of this Court. In course thereof, the learned Judge (S.D. Shah), by his order dated 22nd January 1996 worked out an interim arrangement, keeping the said question open and further directing that this question be heard and decided after the Counsels appearing for both the sides have made their submission and therefore, a peremptory date was fixed. For one reason or the other, the matter could not be taken up by the learned Judge and in course of time, the matter came before Justice Y.B. Bhatt and thereafter before Justice J. N. Bhatt. The learned Judge (J. N. Bhatt, J.) directed the office to obtain necessary order from the learned Chief Justice for placing the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an to be passed in its favour and that decree came to be challenged by the Union of India in Appeal No. 1607 of 1982. The 2nd appeal was in the nature of a cross-appeal claiming interest over the amount which was decreed by the Trial Court. 7.Obviously, therefore, what was being sought back by the Company, was not in the nature of a transaction between a creditor and a debtor, but it involved interpretation of relevant Statute and even if the Company succeeded under the law, could the Company claim the money back or could it have kept the money for itself. The provisions of law which govern the claim of the respective parties were to be found in Section 11(b) of the Central Excises and Salt Act, 1944, as amended in the year 1991. That Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ligation has to be fulfilled according to the result of the litigation. In a broader sense, it might be considered a debt, but strictly speaking, from the point of view of question of preferring one creditor over the other, this is not a debt in that sense. 9.If one visualises the situation that if the amount instead of being given back to the Company, were lying with the Union of India, the matter would have been over the moment appeal came to be allowed and decree came to be set aside. The situation which now we are dealing with, has arisen only because the money was allowed to either remain with the Company or permitted to be withdrawn by it and for securing which, the Bank was required to furnish guarantee. Far from being added, there ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
