TaxTMI 
TaxTMI 
2010 (4) TMI 619
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....reinafter referred to as 'the Act'). They are being disposed of by this common order since the question that arises for our consideration is one and the same. 2. M/s. Dhanraj Mills Private Limited in its ordinary course of business had advanced interest-free loans to the appellant M/s. Killick Nixon Limited and its group of companies. In the year 1992, the Special Court found that M/s. Dhanraj Mills Private Limited, its Directors and their close associates indulged in fraudulent securities transactions resulting in siphoning off huge funds of various banks. The banks had gone into liquidation as a result of those fraudulent securities transactions. The Special Court also held that the end beneficiaries of the siphoned funds were the Direct....
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....um. In the year 1997, the Special Court passed decrees against the appellant and its group Companies which are consent decrees qua invitum the Custodian, whereby individually ascertained amounts were to be paid in instalments with the interest at the rate of 15 per cent per annum. Similar consent decree was passed against 13th group Company also. 6. M/s. Dhanraj Mills Private Limited, in the meanwhile, made an application before the Special Judge contending that the amounts recovered from the group Companies cannot be attached towards the debt payable by M/s. Dhanraj Mills Private Limited to the Custodian, since there was no nexus between loans advanced to original judgment-debtors and the transactions with the banks. The prayer in the sai....
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....fer the facts, the subsequent events in detail and various objections raised from time to time as to the sale of properties in the process of realizing the decretal amounts. However, one important fact that may be required to state is that the Special Court by its earlier order dated 30-11-2001 required the judgment debtors to pay Rs. 16 crores payable towards all decrees for considering the prayer for extension of time to which all of them agreed to do so. This singular fact establishes that even judgment debtors were treating the separate decrees passed against each one of them as a consolidated common decree. The Custodian, at all points of time treated them as a group to which no objections were raised at any point of time. The sale pro....
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....proceeded and agreed to have appropriation of the sale proceeds of the properties sold on group basis. The averment in the petition filed in the Special Court contained figures relating to the aggregate dues of the group, the aggregate amounts received from the sale of properties and the aggregate balance amount. 11. The Special Court after a detailed consideration came to the conclu-sion that M/s. Killick Nixon Limited and others are group companies and they are all controlled by M/s. Dhanraj Mills Private Limited - notified party and the amounts that are being recovered in execution of the decrees are really public funds which were siphoned off by the Directors of M/s. Dhanraj Mills Private Limited, and parked in the companies controlled....