https://www.taxtmi.com/caselaws?id=36138 Delhi HC held that, in a winding-up context, s. 391(6) of the Companies Act can extend to taxation proceedings under special statutes and therefore permits restraint on penalty and interest recovery where needed to protect a proposed arrangement. It refused to stay the sales tax assessment proceedings themselves, but stayed penalty proceedings for the relevant pre-1980 assessment years and stayed recovery of interest to preserve the scheme's viability and creditor interests. The stay was made conditional on the company making regular monthly payments towards arrears and current liabilities, with automatic vacation on default. Costs were directed to be borne by each party. en-us Thu, 05 Feb 1981 00:00:00 +0530 Fri, 19 Mar 2010 15:39:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36138 Delhi HC held that, in a winding-up context, s. 391(6) of the Companies Act can extend to taxation proceedings under special statutes and therefore permits restraint on penalty and interest recovery where needed to protect a proposed arrangement. It refused to stay the sales tax assessment proceedings themselves, but stayed penalty proceedings for the relevant pre-1980 assessment years and stayed recovery of interest to preserve the scheme's viability and creditor interests. The stay was made conditional on the company making regular monthly payments towards arrears and current liabilities, with automatic vacation on default. Costs were directed to be borne by each party. Case-Laws Income Tax Thu, 05 Feb 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36138