9911796707
|
Home
Issues:
Recovery of arrears of cess from a Company in liquidation by the Crown. Analysis: The case involves the recovery of arrears of cess from a Company in liquidation by the Crown. The Deputy Collector of Manbhum sought to recover the arrears of cess due from the West Laikdih Coal Company, Limited, within whose District the colliery is situated. The motion was filed to restrain the Cess Deputy Collector from levying execution against the Company's property. The key legal provisions at play were Section 98 of the Cess Act (IX of 1880) and Section 3(6) of the Bengal Public Demands Recovery Act (III of 1913), which define the authority and methods for recovering public demands, including arrears of cess. The Company argued that the Crown's right to recover debts was restricted by the Companies Act (VII of 1913), specifically citing Sections 171 and 232. However, the Court noted that Section 232 exempts the Government from certain provisions regarding attachment during winding up. Referring to a previous case, it was established that the Crown's prerogative was not affected by the Companies Act of 1888, and the Crown retained its right to recover debts due to it. The Court examined Section 171 of the Companies Act VII of 1913 and concluded that it did not restrict the Crown's prerogative rights. Citing precedents from English courts, it was emphasized that the Crown is not bound by a statute unless expressly mentioned or implied. The Court held that the Crown had the right to recover arrears of cess and dismissed the motion to restrain the Crown's representative from enforcing its powers. The Liquidator was awarded costs from the estate. In summary, the judgment reaffirmed the Crown's prerogative to recover arrears of cess from a Company in liquidation, emphasizing that the Companies Act did not restrict this right. The Court's decision was based on legal precedents and the interpretation of relevant statutory provisions, ultimately upholding the Crown's authority in the matter.
|
