| Case ID |
0a9a6bc1-a774-4144-bfe1-008ebdced3d2 |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeal No.417 of 1989 |
| Decision Date |
Feb 06, 1993 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the appeal filed by the petitioners against the Lahore High Court's order. The court found that the sale of the Muslim Ginning Factory was not fraudulent and upheld the decision of the Tax Recovery Officer who had sold the property after due process. The court ruled that the proceedings initiated for recovery of income-tax dues were valid as they commenced before the winding-up petition was filed. Therefore, the subsequent sale was deemed acceptable, as no order of winding-up had been made by the court at the time of the auction, and the necessary permissions were not required for the Tax Recovery Officer to proceed with the sale. The court concluded that the findings of the lower courts did not suffer from any legal or factual infirmity, thus affirming the legality of the sale and dismissing the appeal without costs. |
| Summary |
In the case of Civil Appeal No. 417 of 1989, the Supreme Court of Pakistan addressed the complexities surrounding the winding up of A.B.M. Associates Ltd. and the subsequent sale of the Muslim Ginning Factory. The case involves critical interpretations of the Companies Act (VII of 1913), particularly sections related to the winding up process and the authority of the Tax Recovery Officer in the sale of company assets. The court evaluated whether the sale was conducted fraudulently, considering the value discrepancies and the timing of the winding-up petition. Ultimately, the Supreme Court upheld the decisions of the lower courts, affirming that the sale was lawful and did not violate any legal provisions, as the necessary permissions were not required until an official winding-up order was issued. The ruling emphasizes the importance of adhering to procedural norms in corporate liquidation scenarios, providing clarity on the rights of tax authorities vis-à-vis corporate assets during insolvency proceedings. This case serves as a significant reference for future legal interpretations concerning company liquidation and asset recovery processes. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Tax Recovery Officer,
Muslim Ginning Factory,
A.B.M. Associates Ltd.
|
| Judges |
MUHAMMAD AFZAL ZULLAH, C.J.,
ABDUL QADEER CHAUDHRY,
SAEEDUZZAMAN SIDDIQUI, JJ
|
| Lawyers |
Ch. Ghularn Mujtaba, Advocate-on-Record for Appellants,
Rana MA. Oadir, Advocate-on-Record No. 5,
Abid Hasan Minto, Senior Advocate Supreme Court,
M. Afzal Wahla, Advocate Supreme Court,
M.A. Oureshi, Advocate-on-Record No. 6,
Naazar Khan, Advocate-on-Record Nos. 1 and 7
|
| Petitioners |
Begum Anwar Sultana
|
| Respondents |
A.B.M. ASSOCIATES LTD.,
FAISALABAD
|
| Citations |
1993 SLD 329,
1993 PLD 404
|
| Other Citations |
Not available
|
| Laws Involved |
Companies Act (VII of 1913),
Constitution of Pakistan (1973)
|
| Sections |
183(5),
168,
169,
170,
171,
227,
232,
185(3)
|