TaxTMI 
TaxTMI 
2010 (9) TMI 235
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....atma Gandhi Road, Bangalore and also the furniture and fixtures. Under a separate agreement for security deposit dated 24-12-2004 the respondent-company has received and acknowledged the security deposit of Rs. 18,26,000 from the petitioner-company. 3. During the subsistence of this lease, the secured creditor of the respondent-company by name The Tamilnadu Industrial Investment Corporation Limited invoked the provisions of State Financial Corporations Act, 1951 and sold the premises and furniture in question by way of public auction. In the said public auction the petitioner-company participated and became successful bidder for a sum of Rs. 2,30,00,000. On payment of sale consideration, the secured creditor has executed a registered sale ....
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.... It is also not in dispute that the secured creditor by name Tamilnadu Industrial Investment Corporation Limited invoked the provisions of State Financial Corporations Act and sold the leased premises and furniture in a public auction in favour of the petitioner-company. Thus by operation of law the lease between the petitioner and respondent-company came to be terminated. This is also the finding of this Court in its order dated 7-10-2009 while admitting this petition. Therefore the contention of the respondent-company that the lease between the parties is not terminated is not acceptable to me. 7. Learned counsel for the respondent-company further contends that what was mortgaged in favour of the secured creditor - Tamilnadu Industrial I....
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....ding up of the company itself. Till such a future event happens, the charge is of an ambulatory or roaming character. It remains in this hovering and condition until the contemplated future event takes place. Once, however, this future event occurs the charge settles down, and attaches itself to a fixed property. The right created under it is no doubt a right in praesenti. The security in respect of which the right is created, however, become crystallized only when the future event takes place. It may, therefore, be said that until the time that such further event occurs the right created thereby is a dormant right. The movement such future event takes place, this dormant right assumes a dynamic form, and becomes capable of enforcement agai....