2014 (4) TMI 1285 - SCH - Companies Law

Recovery of sales tax dues of the company in liquidation - priority to be observed in the matter of payment of debts in the case of winding up - It was held by the HIgh Court that If the sale is held free of encumbrances and if the State is allowed to pursue its claim as against the property, it would naturally bring the sale under a cloud and there would be no end to the litigation which would in the ultimate analysis be not only against the interests of persons whose interests are sought to be secured by the Companies Act on the basis of priority, but against the scheme of the Companies Act. HELD THAT - There are no merit in the Special Leave Petition. It stands dismissed accordingly.