| Case ID |
d835c9b5-1a90-4622-9357-23061a092bd2 |
| Body |
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| Case Number |
CIVIL ORIGINAL No. 8 OF 1961 |
| Decision Date |
Sep 08, 1961 |
| Hearing Date |
|
| Decision |
The court ruled that the official liquidator must admit the petitioner's claim of Rs. 12,500 concerning penalty orders that were issued prior to the company's liquidation, while the claim related to a penalty order dated April 14, 1956, was not entertained as proper notice was not given to the official liquidator. It was held that once a winding up order has been made, no legal proceedings shall be commenced against the company without the court's permission, which was not obtained in this case. Thus, the petitioner was deemed an ordinary creditor for the admitted amount, confirming the official liquidator's actions regarding the claims prior to the liquidation. |
| Summary |
This case involves the Union of India petitioning for the admission of a claim amounting to Rs. 16,500 related to penalty orders issued under the Income-tax Act. The official liquidator had refused to admit this claim, leading to the dispute. The court examined various penalty orders issued over multiple assessment years, ultimately deciding that the claim of Rs. 12,500 was valid as it pertained to penalties imposed before the company was ordered to be wound up. The court highlighted that the Income-tax Act's provisions create a special tribunal for handling such claims, and civil courts cannot interfere in these matters. The ruling underscores the importance of following legal procedures during liquidation and the limitations on claims against companies undergoing such processes. The case references several prior judgments to support its conclusions, establishing a clear precedent in handling similar disputes involving tax penalties and liquidation proceedings. |
| Court |
Punjab High Court
|
| Entities Involved |
Union of India,
Seth Spinning Mills Ltd
|
| Judges |
Tek Chand, J
|
| Lawyers |
Mr. D.N. Awasthy
|
| Petitioners |
Union of India
|
| Respondents |
Seth Spinning Mills Ltd
|
| Citations |
1962 SLD 46,
(1962) 46 ITR 193,
(1963) 7 TAX 110
|
| Other Citations |
Commissioner of Income-tax v. Bhikaji Dadabhai & Co.[1961] 42 ITR 123,
A.I.R. 1961 SC 1265,
In re Kaithal Grain and Bullion Exchange [I954] 25 ITR 87,
A.I.R. 1954 Punj. 84,
In re Culvert [1899] 2 Q.B. 145,
Dinshaw & Co. v. Income-tax Officer, Lucknow [1941] 9 ITR 215,
Janda Rubber Works Ltd. v. Income-tax Officer, Salaries Section [1950] 18 ITR 951,
Governor-General in Council v. Sargodha Trading Co. Ltd.[1947] 15 ITR 332,
Raleigh Investment Co. v. Governor-General in Council [1943] 11 ITR 368
|
| Laws Involved |
Companies Act, (VII of 1913)
|
| Sections |
171
|