9911796707
TMI Blog2012 (12) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... operative by law and interest becomes payable in view of this statutory provision. Rule 156 envisages a situation where no rate of interest has been agreed upon between the parties. It postulates that interest can be paid up to a maximum of 4%. where the Official Liquidator has a surplus after payment in full of all the claims which are admitted to proof. It is only where an excess amount is available that the question of payment of interest will be considered as per Rule 179. As on date as is the submission by the Official Liquidator, Rs.2,20,00,000/- is lying with him out of which Rs.35 lacs has to paid to the workmen. The claim of the Central Excise has been admitted to Rs.1,85,04,400.76; the liability of the company today would thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de this order, a penalty of Rs.5 lacs had been imposed upon the company (in liquidation) which amount has since been deposited by the company on 03.10.1989 vide Challan of even date and as such no amount is payable under this head. (ii) Order No. 40/1996 7. This is the second adjudication order. It is dated 14.08.1996. The duty payable was adjudicated upon by the Commissioner at Rs.45 lacs; penalty of Rs.25 lacs was also imposed upon the company. In appeal, the appellate tribunal had reduced the penalty to Rs.10 lacs. Civil Appeal was filed against this order which was dismissed on 30.04.2002 confirming the order of the Commissioner. Admittedly Rs. 6 lacs has been paid by the company under this head. Out of a totally amount of Rs.71 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udication order. It is dated 27.05.1993. The amount payable under this head is Rs.4,83,171/- which was the duty levied upon the company. (vii) Order No. 50/1993 12. This is the seventh adjudication order. It is dated 25.10.1993. Attention has been drawn to the said order. The amount has admittedly not been quantified; as such the penalty of Rs. 20,000/- imposed by the aforenoted order is alone payable by the company. This has been conceded to by the learned counsel for the respondent. 13. Thus under all the aforenoted seven adjudication orders, an amount of Rs.1,85,04,400.76 is payable by the company. This figure has been arrived at after agreement and inter-see clarifications made by the parties i.e. representations made by the L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rporation of Section 11-AA; the relevant date would be the date on which the duty was determined and the liability of the company to pay the interest would arise from that date. Further submission being that the order passed by the CEGAT, Northern Bench (in the case of Prabhat Zarda Factory Ltd.) has been upheld by the Apex Court which had dismissed the Civil Appeal on 19.12.2003. 16. Submissions have been countered. Learned counsel for the Liquidator points out that the factual scenario in the instant case is different; the company is in liquidation and Chapter VII of the Companies Act dealing with the winding up of a company would be applicable; submission being that in this case, the company had been wound up on 01.05.1995 and provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the company has been detailed by him as Rs.2,20,00,000/-. It is pointed out that there was only one secured creditor who has since been paid; the claims of the workmen have already been adjudicated upon which are approximately to the tune of Rs.35 lacs. 18. Rule 156 of the Company (Court) Rules 1959 deals with the quotient of interest. It reads herein as under:- 156. Interest- On any debt or certain sum, payable at a certain time or otherwise whereon interest is not reserved or agreed for, and which is overdue at the date of the winding-up order, or the resolution as the case may be, the creditor may prove for interest at a rate not exceeding four per cent per annum up to the date from the time when the debt or sum was payable, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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