AI Structured Summary
Not yet generated for this judgment
Judgment
R.M. Chhaya, J.—By way of this application, the applicant-Union Bank of India has prayed for the following reliefs:-
The Hon''ble Court would be pleased to direct the respondent No. 1 - office of the Official Liquidator to disburse the share of the applicant being secured creditor from the available balance funds of a sale proceeds.
The Honourable Court would be pleased to direct the respondent No. 2 - Gujarat Industrial Development Corporation to deposit it''s share of the liquidation expenses with either applicant or with the respondent No. 1- office of the Official Liquidator since the said expenses are already paid solely by the applicant alone.
The Honorable Court would be pleased to pass such other & further order as it deem fit and proper in the interest of Justice.
It transpires from the record of the petition that the Company in liquidation came to be wound up by an order of this Court and the properties were sold pursuant to the orders passed by this Court by the Official Liquidator. It further appears that by an order dated 24.3.2011, this Court passed an order of disbursement to the tune of Rs. 20,00,000/- (Rupees twenty lacs only) in favour of the applicant Bank being the only secured creditor. It also transpires that respondent No. 2-GIDC has also been disbursed an amount of Rs. 78,677/- on ad-hoc basis. After the said order, the present application is filed for further disbursement of the sale proceeds.
Pursuant to notice issued by this Court, the GIDC as well as the Official Liquidator has filed their response. It is noteworthy that in a further report filed by the Official Liquidator, it is indicated that the total amount payable to the applicant Bank and the claim on the basis of affidavit of proof of debt comes to Rs. 1,44,92,385/-, out of which Rs. 20,00,000/- has been paid, as aforesaid. The Official Liquidator in his further report dated 25.9.2012 has stated as under:-
It is most respectfully further submits that M/s. Kiran Shah & Associates, Chartered Accountants vide letter dated 13.09.2012 has determined the tax liability of Rs. 10 lacs (approx.) under the head STCG (Short Term Capital Gain) of the total sale proceeds. A copy of the letter dated 13.09.2012 of M/s. Kiran Shah & Associates, Chartered Accountants is annexed hereto and marked as Annexure "B".
That, the Official Liquidator most respectfully submits that the Official Liquidator having a fund of Rs. 12,73,105/- in the Company''s account. After making provisions for contingent expenses of liquidation proceedings of Rs. 2,00,000/- and after determined the tax liability of Rs. 10,00,000/- (approx), nothing remains in the hands of Official Liquidator for making any payment to the applicant as well as any class of creditors of the Company.
Mr. Trivedi, learned advocate for the applicant has contended that the applicant Bank is ready and willing to file an undertaking before this Court that in the event, if the tax liability towards Short Term Capital Gains is fixed, the applicant Bank shall reimburse the amount if this Court makes an order of further disbursement. Considering the averments made in Para 6 of the report dated 25.9.2012, the Chartered Accountants have undertaken the tax liability towards Short Term Capital Gain to the tune of Rs. 10,00,000/-. It is evident from the record that if Rs. 2,00,000/- are permitted to be returned by the Official Liquidator as contingent expenses as declared by the Official Liquidator, nothing would remain in the hands of the Official Liquidator for making any payment. In the event, though at this stage, no order can be passed for disbursement in favour of the applicant, the Official Liquidator is hereby directed to approach the income tax department and get the tax liability determined latest by 30.4.2013. Mr. M.R. Bhatt, learned Senior Advocate with Mrs. Mauna M. Bhatt assures this Court that in case if any such application is made by the Official Liquidator, the same shall be determined as expeditiously as possible. If the Official Liquidator fails to approach the income tax department as directed above, it would be open for the applicant Bank to approach this Court again seeking similar reliefs. The application stands disposed of at this stage in the above terms.