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TMI Blog2016 (9) TMI 1039X X X X Extracts X X X X X X X X Extracts X X X X ..... the latest agreement dated 23.07.2015 is clear in all material terms and essentially brings about an end to the relationship between M/s. N.K.Industries Ltd. and M/s. Banpal Oil Chem Pvt. Ltd. That being the position, the Tax Recovery Officer was not correct in contending that M/s. N.K.Industries Ltd. owed any amount to M/s. Banpal Oil Chem Pvt. Ltd which can be recovered directly for the tax dues of M/s. Banpal Oil Chem Pvt. Ltd. The impugned order dated 10.06.2016 is, therefore, set aside. We make it clear that if the department has any recovery to be made either against M/s. Banpal Oil Chem Pvt. Ltd or M/s. N.K.Industries Ltd., it is always open for them to proceed in accordance with law. - SPECIAL CIVIL APPLICATION NO. 12508 of 2016 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder which, the petitioner would pay a larger amount as compared to what was envisaged in the original agreement and the parties would withdraw multiple proceedings from different courts. Since copy of this settlement agreement is not filed by either side, the same is taken on record. 3. It appears that despite this settlement agreement dated 09.04.2015, the issues could not be completely resolved. The petitioner, therefore, withheld the balance payment of ₹ 2.42 crores in favour of M/s. Banpal Oil Chem Pvt. Ltd. Finally, the petitioner M/s. N.K.Industries Ltd. and M/s. Banpal Oil Chem Pvt. Ltd executed the agreement dated 23.07.2015, under which, they decided to call off the deal. The petitioner would withdraw the suit filed for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rived at by deducting ₹ 10.75 crores already paid by M/s. N.K.Industries Ltd. to M/s. Banpal Oil Chem Pvt. Ltd. out of the original sale consideration of ₹ 11.11 crores mentioned in the agreement to sale and does not take into consideration the revised terms contained in the later agreement dated 09.04.2015. 6. Be that as it may, the case of the department is that what ever the amount M/s. N.K.Industries Ltd. may have to pay to M/s. Banpal Oil Chem Pvt. Ltd, the department can seek direct recovery thereof in terms of section 226(3) of the Act in form of tax arrears of M/s. Banpal Oil Chem Pvt. Ltd. However, the record would suggest that the petitioner is no longer a debtor of M/s. Banpal Oil Chem Pvt. Ltd. Though previously t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany namely N K Proteins Ltd out of cash accrual(S) generated from business in future. 5. Party of part 1 agreed to waive its rights under agreement dated 02/09/2011 and subsequent MOU dated 15/01/2013 and waives execution of deed of assignment as well as sale of factory premises/plant and machinery as was envisaged in the above referred two agreement/MOU. 7. It can thus be seen that M/s. N.K.Industries Ltd. waived its rights under agreement dated 02.09.2011 and subsequent agreement dated 05.01.2013 and also waived execution of the sale deed. In turn, M/s. Banpal Oil Chem Pvt. Ltd agreed to return consideration of ₹ 10.75 crores already paid by M/s. N.K.Industries Ltd. and M/s. N.K.Industries Ltd. withdrew the suit for specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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