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TMI Blog2019 (7) TMI 1235X X X X Extracts X X X X X X X X Extracts X X X X ..... ither exemption from such payment or will provide protection as a justification for non-payment - Another thing of significance is that the registration of the application of the Appellant has been made on 29.05.2002, whereas this liability has arisen prior to the said date and we are of the opinion that in matters of obligations created under taxing statute, no leeway as such can be permitted to shy away from compliance or else the entire fiscal management of the State and the Union will go into disarray. The defence taken by the Appellants before the learned Single Judge did not stand the judicial test, keeping in mind the precedents which have been taken note of in the order impugned of the learned Single Judge. Appeal dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the said submission, dealt with the provisions, especially Section 22 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short, 'the SIC Act') and also took note of the various decisions rendered by the Courts, especially the Hon'ble Supreme Court in following terms : 10. In the matter of Shree Chamundi Mopeds Ltd. v. Church of South India Trust Association CSI CINOD Secretariat, Madras (1992) 3 SCC 1 , the Supreme Court has held the conditions precedent for applicability of Section 22 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985 which state as under: - 9. A perusal of the aforesaid provision shows that it is applicable, in respect of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iate inquiry as provided in Sections 16 and 17 of the Act. At the conclusion of the inquiry, after notice and opportunity afforded to various persons including the creditors, the BIFR is to prepare a scheme which shall come into force on such date as it may specify in that behalf. It is in implementation of the scheme wherein various preventive, remedial or other measures are designed for the sick industrial company, steps by way of giving financial assistance etc. by Government, banks or other institutions, are contemplated. In other words, the scheme is implemented or given effect to, by affording financial assistance by way of loans, advances or guarantees or reliefs or concessions or sacrifices by Government, banks, public financial ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an appeal under Section 25 of the Act, it will be reasonable to hold that the bar or embargo envisaged in Section 22(1) of the Act can apply only to such of those dues reckoned or included in the sanctioned scheme. Such amounts like sales tax, etc., which the sick industrial company is enabled to collect after the date of the sanctioned scheme legitimately belonging to the Revenue, cannot be and could not have been intended to be covered within Section 22 of the Act. Any other construction will be unreasonable and unfair and will lead to a state of affairs enabling the sick industrial unit to collect amounts due to the Revenue and withhold it indefinitely and unreasonably. Such a construction which is unfair, unreasonable and against spiri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operate when an inquiry had been initiated under Section 16 or a scheme referred to under Section 17 is under preparation and/ or inter alia a sanctioned scheme is under implementation. It is not disputed before us that the amount awarded in favour of Respondent 2 by the Council finds specific mention in the sanctioned scheme which is under implementation. 18. The award of the Council being an award, deemed to have been made under the provisions of the 1996 Act, indisputably is being executed before a civil court. Execution of an award, beyond any cavil of doubt, would attract the provisions of Section 22 of the 1985 Act. Whereas an adjudicatory process of making an award under the 1993 Act may not come within the purview o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it has included in the sanctioned scheme (if any) by the BIFR, are not entitled for the protection of Section 22 (1) of the SIC Act. Even otherwise, liability of the petitioner under the Act of 1994 is statutory in nature in the shape of Section 26 (4) (a) of the Act of 1994. The Supreme Court in Voltas Ltd. (supra) has clearly held that if statutory liability has to be waived then there must be express waiver of the same. 5. The learned Single Judge, therefore, came to an opinion that payment of interest and the liability so created for non-compliance within the time frame of filing returns or paying taxes would not be covered under the BIFR Rehabilitation Scheme and the obligation and liability to pay interest amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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