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COMA/83/2010 6/ 6 ORDER
IN
THE HIGH COURT OF GUJARAT AT AHMEDABAD
COMPANY
APPLICATION No. 83 of 2010
In
OFFICIAL
LIQUDATOR REPORT No. 156 of 2006
In
OFFICIAL LIQUDATOR REPORT No. 118 of 2006
=========================================================
ELECON
ENGINEERING COMPANY LTD - Applicant(s)
Versus
OFFICIAL
LIQUIDATOR OF SHREE VALLABH GLASS WORKS LTD. & 1 - Respondent(s)
=========================================================
Appearance :
MRS
SANGEETA N PAHWA for
Applicant(s) : 1,
OFFICIAL LIQUIDATOR for Respondent(s) : 1,
MS
AMEE YAJNIK for Respondent(s) : 1,
NOTICE SERVED BY DS for
Respondent(s) :
2,
=========================================================
CORAM
:
HONOURABLE
MR.JUSTICE M.R. SHAH
Date
: 03/05/2010
ORAL
ORDER
Present
Judges Summons has been taken out by the applicant-Elecon
Engineering Co.Ltd.- purchaser of land bearing Survey No.368,
ad-measuring 33,790.78 sq. mtrs. situated at Karamsad, District:
Anand for the following reliefs:
(A)That
this Hon’ble Court be pleased to direct the respondent No.2- Chief
Officer of the Notified Area Office of GIDC to issue No Objection to
the applicant without insisting the applicant to pay the arrears of
tax upto the date of confirmation of sale of the land covered by Lot
No.V, i.e. land bearing Survey No.368, ad-measuring 33790.78
Sq.Mtrs. situated in village Karamsad, District: Anand in the
interest of justice and equity;
WITHOUT
PREJUDICE TO THE ABOVE RELIEF AND IN THE ALTERNATIVE
(B)
That this Hon’ble Court be pleased to direct the respondent No.2-
Chief Officer of the Notified Area Office of GIDC to issue No
Objection to the applicant without insisting the applicant to pay
the arrears of tax upto the date of winding up of the company in
liquidation in respect of the land covered by Lot No.V, i.e. land
bearing Survey No.368, ad-measuring 33790.78 Sq.Mtrs. situated in
village : Karamsad, District: Anand in the interest of justice and
equity;
At
the time of hearing of the present application, Shri Pahwa, learned
advocate appearing on behalf of the applicant did not press the
prayer in terms of paragraph No.1(A) and has requested to consider
the alternative prayer in terms of paragraph 1 (B) only. Therefore,
this Court is required to consider the prayer of the applicant in
terms of 1(B) only.
It
is the case on behalf of the applicant that applicant has purchased
Lot No.V of land bearing Survey No.368, ad-measuring 33,790.78 sq.
mtrs. situated at Karamsad, District: Anand for sale consideration
of Rs.6.91 crores subject to the terms and conditions as are
contained in the tender notice and the same has been confirmed by
this Court vide order dated 15.12.2006 passed in OLR No.156 of 2006.
It is submitted that after purchase of the aforesaid property and on
payment of full sale consideration and after the execution of the
Deed of Conveyance dated 31.3.2008, the applicant approached the
Chief Officer, Notified Area, GIDC to obtain the No Objection by
application dated 5.2.2010. It is submitted that in response
thereto, the Notified Area of Office of the GIDC has addressed a
letter dated 9.2.2010 to the applicant stating therein that as there
is outstanding amount of tax due, the applicant cannot be given No
Objection Certificate. It is submitted that applicant thereupon
addressed a detailed representation dated 11.3.2010 to the
respondent No.2 pointing out that applicant being the auction
purchaser is not liable to pay outstanding dues of the company in
liquidation as claimed by the respondent No.2 and the respondent
no.2 has objected to lodge the claim with the Official Liquidator
and the Official Liquidator, in turn, is obliged to settle the dues
of respondent No.2 in accordance with provisions of the Section 530
of the Act. It is submitted that still the respondent No.2 is
insisting that the applicant shall pay the entire amount of tax
liability and therefore, the applicant has preferred the present
application. Shri Pahwa, learned advocate appearing on behalf of the
applicant has submitted that the applicant has purchased the
property of company in liquidation comprised in Lot No.V, i.e. land
bearing Survey No.368, ad-measuring 33790.78 Sq.Mtrs. situated in
village Karamsad, District: Anand for a sale consideration of
Rs.6.91 crores on the terms and conditions of the sale as per the
tender document which came to be confirmed by this Court vide order
dated 15.12.2006 passed in OLR No.156 of 2006. It is submitted that
as per the terms and conditions of the tender form, the
applicant-Company who purchass the property in question shall be
liable to pay all statutory dues, if any, due and payable on the
terms and conditions of the said sale only upto the date of winding
up of the company i.e. properties of the subject company for the
period after the date of winding up order and the payment of such
dues for pre-liquidation period shall be settled as per the
provisions of the Companies Act, 1956. Therefore, it is submitted
that for payment of any dues for pre-liquidation period, the
purchaser should not be liable to pay. It is submitted that as per
the terms and conditions of the tender form, more particularly,
Clause 15 of the terms and conditions of payment of dues for
pre-liquidation period shall be settled as per the Companies Act,
1956. It is submitted that despite the same, respondent No.2, Chief
Officer, Notified Area, GIDC, Vitthal Udhyognagar, Anand is
insisting for payment of entire amount of tax and/or levy while
issuing ‘No Objection Certificate’ in favour of the applicant. Shri
Pahwa, learned advocate appearing on behalf of the applicant has
submitted that as such, the applicant is ready and willing to pay
whatever the amount is outstanding towards tax, water charges and
drainage charges for the period post-winding up and the same shall
be deposited with the respondent no.2 within a period of 21 days
from today. Shri Pahwa, learned advocate appearing on behalf of the
applicant has relied upon the decision of this court rendered in
Company Application No. 474 of 2009.
Shri
N.V.Anjariya, learned advocate appearing on behalf of the respondent
No.2 has submitted that the respondent No.2 shall inform the
petitioner about the amount outstanding towards Notified Area tax
water charges, and drainage charges for the period post-winding up
and for the outstanding amount due and payable for the period of
pre-winding up, respondent No.2 shall lodge a claim with the
official Liquidator within a period of 4 (four) weeks and for the
rest of the amount i.e. for the post-winding up period, applicant
may be directed to pay the same at the earliest.
Having
heard the learned advocate appearing on behalf of the respective
parties and considering the terms and conditions of the sale as per
the tender document, applicant-auction purchaser is liable to clear
outstanding dues of the notified area towards tax, water charges and
drainage charges etc. due and payable to the respondent No.2 for
post-winding up period only and any outstanding dues towards tax and
water charges and drainage charges, pre-winding up period, the
applicant-purchaser cannot be saddled with liability.
Under
the circumstances, let the applicant pay / deposit with the
respondent No.2 any outstanding dues towards tax, water charges and
drainage charges, etc. for the post-winding up period within a
period of 3 (three) weeks from today and on such deposit, the
respondent No.2 shall issue No Objection to the applicant. For the
rest of the outstanding amount towards notified area, tax, water
charges and drainage charges for the pre-winding up, it will be open
for the respondent No.2 to lodge their claim before the Official
Liquidator, and as and when such a claim is lodged by the respondent
No.2, the same be considered by the Official Liquidator in
accordance with law and on its own merits considering the provisions
of the Companies Act, 1956, more particularly, Section 530 of the
Companies Act, 1956.
With
this, present application is disposed of.
(M.R.SHAH,
J.)
(ashish)
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