2007 (11) TMI 400

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....ch of the Allahabad High Court. The appellant-a unit of National Textile Corporation U.P. Limited (in short 'NTC') had moved the High Court for quashing the recovery proceedings. Further prayer was for direction to the respondents not to demand and/or recover any amount from the appellant. 3. Background facts as projected by the appellant are as follows: "The appellant unit was involved in the manufacture of cotton yarn. The production in the unit stopped in the year 1992. Out of the 11 units which had become sick, nine could not be revived and only two could be revived. The appellant referred the matter of sickness of the mill to the BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985 (in short 'SICA'). The electr....

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....vy of late payment surcharge and so the amount was payable. It is not in the nature of penalty or compensation. This according to the High Court was the ratio in L.M.L. Ltd.'s case (supra). It was also noted by the High Court that the factual position in Lord Krishna Mills case was not clear and, therefore, even if some relief was granted to the said unit, that cannot be a ground to hold that late payment of surcharge was to be written off. 8. Learned counsel for the appellant submitted that admittedly no separate levy was made and, therefore, the question of waiver of interest does not arise. Additionally, it is submitted that in the case of Lord Krishna Mills case relief as has been claimed by the appellant was granted. The decision in....

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....by the purchaser of the land not by the company. (v)To waive the interest and damages on the electricity, water and municipal dues and accept payment of principal amount only during the year 2001-02. (vi)To exempt the company from payment of sales tax on the sale of scrap and other material rendered surplus. 5.04 Kanpur Electricity Board/State Electricity Board/State Government Power.-To write off interest and damages in respect of arrears current dues of the company to Kanpur Electricity Board or to any other Electricity Authority in whose jurisdiction the mills were located. (i)To ensure to supply the electricity as required continuously, regularly during the period of rehabilitation." 11. It is to be noted that the High Co....