9911796707
TMI Blog2017 (8) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... ated:- 24-7-2017 - M. Sundar, J. For the Petitioner : Mr.V.Kuberan for M/s.Rank Associates For the Respondents : Mrs.Rita Chandrasekaran for R-1 for M/s.Aiyar Dolia Mr.T.M.Pappiah, Spl.G.P. For RR 2 and 3. ORDER Subject matter of the writ petition is a Hire Purchase Agreement dated 31.01.1996 (hereinafter referred to as 'said HP agreement'). 2. Said HP agreement is between the writ petitioner company, i.e., Virgo Polymer (India) Limited, and respondent no.1 before me, i.e., The Tamil Nadu Industrial Investments Corporation Limited ('TIIC' for brevity). 3. Said HP agreement is for purchase of Circular Weaving Machine Model LSHD N 4 and the name of the supplier is M/s.Lohia Starlinger Limited, Bang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9000 sq.ft. of superstructure in the form of shed (hereinafter referred to as 'collateral security properties'). 7. The entire writ petition turns on a very narrow compass. That narrow compass is sales tax payable on said machineries. 8. TIIC would contend that sales tax payable on said machineries has to be paid by the writ petitioner vide clause 8 of the said HP agreement, which reads as follows: 8.The HIRER further covenants and agrees to pay to the OWNER sales tax and any other taxes, levies or dues, that may become payable under any rules or law in force at the time of transfer of ownership of the machinery and equipments from the OWNER to the HIRER. 9. Per contra, learned counsel for the writ petitioner would c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ownership of the same is transferred to the hirer and in default, the owner may proceed against the hirer for such payment by all legal means. 14. Documents pertaining to collateral security properties, i.e., two sheds set out supra, are not being returned by TIIC only because the aforesaid sales tax amount paid by TIIC to the sales tax department has not been made good by the writ petitioner. 15. On whether the writ petitioner has to make good the aforesaid sum of ₹ 13,13,075/- with interest to TIIC is pivoted on two aspects of the matter. One aspect of the matter is whether this sum is also covered in the aforesaid 60 EMIs. The other aspect is whether the sales tax payable on said machineries is 4% or 8%. 16. This Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, bearing No.B37, land admeasuring an extent of 22 cents or thereabouts with 3000 sq. ft. of superstructure in the form of shed and No.B48, land admeasuring an extent of 42 cents or thereabouts with 9000 sq.ft. of superstructure in the form of shed, to the writ petitioner within a fortnight therefrom; c)After furnishing the bank guarantee as aforesaid, the writ petitioner shall submit a representation to the first respondent/TIIC raising the two pivotal aspects pertaining to the lone issue of sales tax payable on said machineries; d)The first respondent / TIIC shall make every effort to reconcile / resolve the issue and respond suitably in writing to the same within six (6) weeks therefrom; e)Though obvious, it is made clear that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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