Delhi High Court
In Re Inchcape India (P) Ltd. vs Unknown on 19 April, 2002
Equivalent citations: (2002) 175 CTR Del 198
Author: M Mudgal
JUDGMENT
Mukul Mudgal, J.
This petition under section 518 of the Companies Act is filed seeking the determination of amount of income-tax which may be payable by the petitioner company so as to repatriate the amount pursuant to the resolution of voluntary winding up of the company passed on 10-7-2000, by the annual general meeting of the shareholders of the company. It is also submitted that the only assets of the company are as under :
(a) Rs. 35,00,000 lying in current account in Sanwa Bank, Connaught Place New Delhi.
(b) Certificate of Deposit of Rs. 1,65,00,000 (maturity value) with Sanwa Bank Connaught Place, New Delhi.
(c) Certificate of deposit of Rs. 3,35,00,000 (maturity value) with bank of Nova Scotia, Barakhamba Road, New Delhi.
Section 518 of the Companies Act reads as under :
"Power to apply to court to have questions determined or powers exercised(1) The liquidator or any contributory or creditor may apply to the court.
(a) to determine any question arising in the winding up of a company; or
(b) to exercise, as respects the enforcing of calls, the staying of proceedings or any other matter, all or any of the powers which the court might exercise if the company were being wound up by the court.
(2) The liquidator or any creditor or contributory may apply to the court specified in sub-section (3) for an order setting aside any attachment, distress or execution put into force against the estate or effects of the company after the commencement of the winding up.
(3) An application under sub-section (2) shall be made
(a) if the attachment, distress or execution is levied or put into force by a High Court, to such High Court; and
(b) if the attachment, distress or execution is levied or put into force by any other court, to the court having jurisdiction to wind up the company.
(4) The court, if satisfied on an application under sub-section (1) or (2) that the determination of the question or the required exercise or power or the order applied for will be just and beneficial, may accede wholly or partially to the application on such terms and conditions as it thinks fit, or may make such other order on the application as it thinks just ........."
2. It is averred that the winding up process cannot be completed if the assets are not distributed and accordingly a prayer is made to determine the quantum of income-tax dues that may be set aside before the distributing the remaining assets to the shareholders.
2. It is averred that the winding up process cannot be completed if the assets are not distributed and accordingly a prayer is made to determine the quantum of income-tax dues that may be set aside before the distributing the remaining assets to the shareholders.
3. Mr. Jolly who appears on behalf of Income Tax Department, pursuant to the notice issued by this court, has filed an affidavit of the Deputy Commissioner Circle 11(1), Income Tax Department, New Delhi, quantifying the amount said to have been due from the company as income-tax including the tax on the interest earned on the fixed deposits. The amount quantified is Rs. 11,40,822. The total amount claimed to be due is quantified at Rs. 1,28,40,822 to be set aside so as to provide for payment if justified to the Income Tax Department. The total money available with the petitioner is Rs. 5,38,56,924. After the retention of the amount of Rs. 1,28,40,822, the balance amount of Rs. 4,10,16,102 is permitted to be distributed/remitted by the petitioner to the shareholders.
3. Mr. Jolly who appears on behalf of Income Tax Department, pursuant to the notice issued by this court, has filed an affidavit of the Deputy Commissioner Circle 11(1), Income Tax Department, New Delhi, quantifying the amount said to have been due from the company as income-tax including the tax on the interest earned on the fixed deposits. The amount quantified is Rs. 11,40,822. The total amount claimed to be due is quantified at Rs. 1,28,40,822 to be set aside so as to provide for payment if justified to the Income Tax Department. The total money available with the petitioner is Rs. 5,38,56,924. After the retention of the amount of Rs. 1,28,40,822, the balance amount of Rs. 4,10,16,102 is permitted to be distributed/remitted by the petitioner to the shareholders.
In view of the above, the company petition stands disposed of.
OPEN
