2008 (8) TMI 223 - HC - Customs

Sick company - Dues under Custom Act - recovery proceedings of liability due, by invoking bank guarantee - proceedings for recovery, either by invoking the bank guarantee or otherwise, is essentially a provision for enforcement and recovery of a liability due - Such distress action, apparently, falls within the purview of Section 22(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 therefore, revenue have to get appropriate orders from the BIFR in terms of the SICA

Summary

The High Court of Kerala heard a writ petition filed by the Commissioner and Deputy Commissioner of Customs, Kochi, challenging a decision communicated through Ext.P6. The petition concerned recovery of amounts due from a company to the Union of India under the Customs Act, 1962. The State Bank of Travancore had issued a bank guarantee for the amount. The proceedings for recovery fall within the purview of the Sick Industrial Companies (Special Provisions) Act, 1985. The bank guarantee had not been renewed since 2001, and the petition was closed without prejudice to further action under the SICA.