9911796707
TMI Blog1995 (3) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... hat as against these total assets the appellant`s company in liquidation has fully secured creditors whose dues were amounting to Rs. 17,41,50,000/- and also that they owe more than Rs. 3 crore to their workmen. 2. Shri Atul Gandhi, Chartered Accountant appearing for the applicant submitted that the facts of the case are that the applicant company was ordered to be wound up by the Hon`ble Punjab and Haryana High Court under its order dated 28-2-1992 that the applicant was engaged in the manufacture of dry cell and silver oxide button cells; that during the year 1987-88, the applicant company was declared as a sick unit by the Board of Industrial and Financial Re-construction (hereinafter referred to as BIFR) and M/s. ITC Ltd. approached t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... panies Act, 1956 it has inter alia been laid down : 529(A)(1) : anything contained in any other provision of this Act or any other law for the time being in force in the winding up of a company -(a) workman`s dues; and(b) debts due to secured creditors to the extent such debts rank under clause `c` of the proviso to sub-section (1) of Section 529 pari pasu with such dues shall be paid in priority of all other debts. (2) : that debts payable under clause (a) and (b) of sub-section (1) shall be paid in full unless the assets are insufficient to meet them in which case they shall be paid in equal proportions." The ld. Chartered Acctt. therefore, submitted that in view of the above provision of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice in the present case. On merits, the ld. SDR submitted that a perusal of the order passed by the Asstt. Collector would show that M/s. ITC was holding 50% of shares of the applicants; that M/s. ITC were advancing soft loans and non-secured loans; that the applicant was using M/s. ITC s brand name `Toshiba ; that the affairs of the applicant company were being managed by the Directors appointed by M/s. ITC. The ld. SDR referred to the judgment of the Tribunal in the case of Metal Box India Ltd. reported in 1989 (39) E.L.T. 79 (Paras 19 to 21) wherein it was held that : * * * * * * * 5. On financial hardship claimed by the applicant the ld. SDR submitted that there was sufficient case law whereunder it has been held that Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
