Asset purchaser liability: tribunal grants stay and waives pre-deposit where liabilities were not assumed.

Pre-deposit was waived and recovery stayed where the applicant, as purchaser of assets of a defaulting company through RIICO, argued that it had not assumed the company's liabilities. The tribunal accepted, for interim purposes, that there was prima facie merit in the contention that the penalty may not be recoverable from an asset purchaser who did not take over the predecessor's obligations, and granted protection pending disposal of the appeal.

---

---

Issues: Whether pre-deposit of the dues demanded under the impugned order should be waived, and whether recovery should be stayed, in view of the applicant's contention that penalty could not be enforced against a purchaser of assets of the defaulting company through RIICO.

Analysis: The application raised a limited question for stay consideration arising from transfer of assets of the erstwhile defaulting company and the applicant's plea that it had not taken over the company's liabilities. The tribunal found prima facie merit in the submission that the penalty may not be recoverable from the applicant, who had purchased the assets through RIICO, and considered this sufficient for interim protection.

Outcome: Pre-deposit was waived and recovery of the dues under the impugned order was stayed till disposal of the appeal.

---