TaxTMI 
TaxTMI 
TaxTMI 
2017 (5) TMI 1545
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.... of power under Section 26 (4) (a) of the Chhattisgarh Vanijyik Kar Adhiniyam, 1994 (for short 'the Act of 1994') imposed interest on the petitioners for the period from 1-4-2000 to 31-3-2001 and from 1-4-2001 to 31-3-2002 which was challenge in appeal before the appellate authority and the appellate authority also held that merely on the ground of registration in the Board for Industrial and Financial Reconstruction (BIFR), interest liability cannot be waived. Thereafter, the Chhattisgarh Commercial Tax Tribunal by its order held that on the basis of mere registration with the BIFR, interest liability cannot be waived and also held that statutory liability to pay interest must be expressly waived against which these writ petitions ....
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....s in BIFR, the petitioners would be relieved of the interest liability which is statutory in nature under Section 26 (4) (a) of the Act of 1994 under the provisions of the BIFR. 8. Section 22 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985 provides as under: - "22. Suspension of legal proceedings, contracts, etc.-(1) Where in respect of an industrial company, an inquiry under section 16 is pending or any scheme referred to under section 17 is under preparation or consideration or a sanctioned scheme is under implementation or where an appeal under section 25 relating to an industrial company is pending, then, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or any other law or the memorandum a....
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....s Ltd. v. Church of South India Trust Association CSI CINOD Secretariat, Madras ((1992) 3 SCC 1), the Supreme Court has held the conditions precedent for applicability of Section 22 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985 which state as under: - "9. A perusal of the aforesaid provision shows that it is applicable, in respect of an industrial company, where (i) an inquiry under Section 16 is pending; or (ii) a scheme referred to in Section 17 is under preparation or consideration; or (iii) a sanctioned scheme is under implementation; or (iv) where an appeal under Section 25 relating to the industrial company is pending. ..." 11. In the matter of Deputy Commercial Tax Officer and others v. Corromandal Pharmaceuti....
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....stance etc. by Government, banks or other institutions, are contemplated. In other words, the scheme is implemented or given effect to, by affording financial assistance by way of loans, advances or guarantees or reliefs or concessions or sacrifices by Government, banks, public financial institutions and other authorities. In order to see that the Scheme is successfully implemented and no impediment is caused for the successful carrying out of the scheme, the Board is enabled to have a say when the steps for recovery of the amounts or other coercive proceedings are taken against sick industrial company which, during the relevant time, acts under the guidance/control or supervision of the Board (BIFR). Any step for execution, distress or the....
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....y other construction will be unreasonable and unfair and will lead to a state of affairs enabling the sick industrial unit to collect amounts due to the Revenue and withhold it indefinitely and unreasonably. Such a construction which is unfair, unreasonable and against spirit of the statute in a business sense, should be avoided." 12. The Supreme Court in the matter of Ghanshyam Sarda v. Shiv Shankar Trading Company and others ((2015) 1 SCC 298) has held that bar under Section 22 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short, 'the SIC Act') would be applicable to the entirety of the period beginning from the inquiry under Section 16 till the implementation of sanctioned scheme for rival or until BIF....
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....n of an award, beyond any cavil of doubt, would attract the provisions of Section 22 of the 1985 Act. Whereas an adjudicatory process of making an award under the 1993 Act may not come within the purview of the 1985 Act but once an award made is sought to be executed, it shall come into play. Once the awarded amount has been included in the scheme approved by the Board, in our opinion, Section 22 of the 1985 Act would apply. 19. If the liabilities of the appellant are covered by the scheme framed under Section 22 of the 1985 Act, the High Court was clearly in error in coming to the conclusion that the provisions thereof are not attracted only because the debt had been incurred after the Company was declared to be a sick one." 14. Similar ....