TaxTMI 
TaxTMI 
2015 (10) TMI 758
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....e and to handover physical and vacant possession of the premises to the Applicant. The Applicant is the owner of the premises. Under an agreement of leave and licence dated 30 July 2014, the Applicant gave the premises on licence to the Respondent Company. The licence period was three years from 1 August 2014 to 31 July 2017. The licence fee was Rs. 24,425/per month. The Respondent Company kept a deposit of Rs. 72,675/with the Applicant as and by way of security deposit for fulfillment of the terms and conditions of the licence agreement. It is the Applicant's case that the Official Liquidator, who is in possession of the premises as a liquidator of the Respondent Company, does not require the premises for beneficial winding up and shou....
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.... the most adjust the security deposit held by it against unpaid licence fee, but for the balance, if any, after such adjustment, it is an unsecured creditor and must avail its turn in liquidation for recovery of its dues in accordance with the law of priorities of debts in liquidation. But if, in the course of winding up, that is to say, after the passing of the winding up order but before the Company is actually wound up, the Official Liquidator requires and uses the premises for beneficial winding up, the licence fees payable during the period of such beneficial use must rank as liquidation expenses and be accorded top priority, i.e. even over the priority claims under Sections 529 A, 529 and 530 of the Companies Act, 1956. 5. In the pre....
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....re are mutual dealings between the creditor and the Company, only that amount which is due at the foot of the account of such mutual dealings would be recoverable. It cannot be said that the amount due from the creditor to the Company should be recovered in full, whilst the amount due to him should rank in payment after the preferential claims provided under Section 530. What this means is that the Applicant Licensor, in the present case, is entitled to adjust the security deposit held by it towards unpaid arrears even prior to the period of winding up, though it is an unsecured creditor in respect of such arrears. 7. We are really not concerned with this situation in the present case, since the entire arrears claimed are for the postwindi....