HILLWOOD TIMBERS vs. COMMISSIONER OF INCOME TAX

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ITA/3/2020HC KeralaKLHC01073741201913 October 2022Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR.JUSTICE BASANT BALAJI3 pages
AI SummaryDismissed

What did the High Court hold?

The Court noted that no orders were required in the matter as submitted by the counsel for the Official Liquidator. Consequently, the application was closed.

What were the facts?

The Official Liquidator of BST Ltd. (in liquidation) filed a miscellaneous company application seeking various permissions related to declaring and disbursing dividends to workmen creditors. The Income Tax Department was also represented.

What were the issues?

The primary issue was whether the Official Liquidator's proposed actions for dividend disbursement and related expenses were to be sanctioned by the court. The application was withdrawn by the applicant.

Which sections of the Income-tax Act were involved?

Section 457, Section 555, Section 529, Section 529A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM (Original Jurisdiction) In the matter of the Companies Act, 1956 and In the matter of M/s.BST Ltd. (In Liquidation)

M.C.A. No.3/2020 in C.P.No.23/2006 Before: The Honourable Mr. Justice VIJU ABRAHAM Monday, the 25

th day of September, 2023/3

rd Aswina, 1945

Applicant The Official Liquidator, High Court of Kerala, Ernakulam, Representing M/s.BST Ltd. (in liqn) Respondent Nil Misc. Company Application under Section 457(1)(e) and 555(1)(a) of the Companies Act, 1956 read with Rule 275, 276, 290 and Rule 9 of the Companies (Court) Rules, 1959 filed by the applicant above named praying for an order to: i) ratify the action of the Official Liquidator in serving a copy of this application to the Standing Counsel of the Income Tax Department. ii) accord sanction to the Official Liquidator to declare and disburse the 1st dividend @ 100 paise in a rupee to the 198 workmen creditors coming under the category of Section 529, 529 A of the Companies Act, 1956 of the company (in liqn); iii) appropriate the sale proceeds to the Company (in liqn)'s account since possession of the property has been handed over to the auction purchaser in view of the reasons narrated in the para 3 of the accompanying affidavit;

Contd........2

iv) permit the Official Liquidator to fix 28.02.2020 as the date of commencement of disbursement of dividend and 27.08.2020 as the last date of payment of dividend and to transfer the unclaimed amount, if any, into the Companies Liquidation Account after the last date fixed for payment of dividend as required under Section 555(1) of the Companies Act, 1956; v) permit the Official Liquidator to issue dividend notice to the creditors entitled to payment of dividend in Form No.138 of the Companies (Court) Rules, 1959 and incur necessary expenses in this regard;. vi) permit the Official Liquidator to dispense with the publication of advertisement in newspapers as required under Rule 276 of the Companies (Court) Rules, 1959; vii) permit the Official Liquidator to close the Fixed Deposit prematurely and transfer the sufficient amount to dividend account. viii) permit the Official Liquidator to open a dividend account with Punjab National Bank, M.G.Road, Ernakulam with a sum of Rs.1,91,77,783/- as provided under Rule 290 of the Companies (Court) Rules, 1959; ix) permit the Official Liquidator to incur necessary expenses in connection with the declaration and payment of dividend from and out of the funds of the company (in liqn); and x) pass such other order or orders as may be deemed fit and proper to this Hon’ble Court in the circumstances of the case. This Application coming on for orders on this day upon hearing Sri.K.Moni, Standing Counsel for Official Liquidator and Sri.Jose Joseph, Standing Counsel for the Income Tax Department, the Court passed the following:-

MCA No. 3 of 2020 : 2 : VIJU ABRAHAM , J. =========================== MCA No. 3 of 2020 ============================ Dated this the 25th day of September, 2023 O R D E R When the matter was taken up for consideration the learned Counsel for the Official Liquidator submits that no orders are required in this matter and the matter may be closed. Recording the same, the above application is closed.

Sd/- VIJU ABRAHAM JUDGE sbk/-

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