9911796707
TMI Blog2007 (9) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... of respondent No. 2 and he becomes one of the assessee, respondent No. 1-State is entitled to recover from the petitioner the security deposit due by respondent No. 2. Therefore, the initiation of proceedings by respondent No. 1 for recovery of ₹ 20 lakhs from respondent No. 2 is maintainable as there is no incorrect or illegal findings to upset the order under challenge. Accordingly, the revision petition is dismissed. The authorities can recover the amount due under the KST Act either from the transferor or from the transferee and the recovery of the sales tax dues shall have priority over the right of the ICICI bank to proceed against the property of the borrowers which has been mortgaged in favour of the bank. The dues of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner addressed a letter to the ICICI bank showing its willingness to purchase the property belonging to the assessee, namely, the respondent herein which had been taken possession of by the bank and the ICICI bank purchased the said property of the second respondent. There is no stipulation of clause that for the amount due under the KST Act of respondent No. 2, the purchaser is liable to pay the said arrears of the assessee-company. Accordingly, the bank has given consent for him and entered into an agreement. The assessee has leased out the premises along with the plant and machinery to this petitioner. Since April 2002 it continues to be in possession as a lessee and the lease agreement had been entered into on December 23, 2001. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objection filed by this petitioner with an observation that the petitioner is none other than the close relative of the managing director of respondent No. 2. The assessee was due in a sum of Rs. 20 lakhs towards arrears of security deposit. Therefore, the trial court is right in dismissing the petition and sufficient reasons were assigned by the trial court that the petitioner was also one of the partners of the respondent No. 2-company. The loan, if any, granted by the ICICI bank in favour of the respondent No. 2 would be recovered both from respondent No. 2 and the petitioner, who was one of the partners. So also, the petitioner being a partner of respondent No. 2 is liable to be pay the same and the trial court was right in issuing f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liability of the security deposit that existed prior to such a transfer, i.e., December 18, 2002 stands also transferred to ICICI bank is incorrect. The ICICI bank which has advanced huge amount to respondent No. 2 for production of various products is expected to recover the amount due by it. The petitioner being one of the directors of respondent No. 2, is said to have started M/s. Arjun Motors. Even if the company is under loss, as regards any amount due under the KST Act shall have a preferential claim over the proceeds of the assets of the assessee-company, but in the instant case, the petitioner itself admits that it is said to have taken over the properties, plant and machinery of the respondent on lease. It never purchased the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plant and machinery of respondent No. 2 and he becomes one of the assessee, respondent No. 1-State is entitled to recover from the petitioner the security deposit due by respondent No. 2. Therefore, the initiation of proceedings by respondent No. 1 for recovery of Rs. 20 lakhs from respondent No. 2 is maintainable as there is no incorrect or illegal findings to upset the order under challenge. Accordingly, the revision petition is dismissed. The authorities can recover the amount due under the KST Act either from the transferor or from the transferee and the recovery of the sales tax dues shall have priority over the right of the ICICI bank to proceed against the property of the borrowers which has been mortgaged in favour of the bank. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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