Lalit Hardware Ltd. (LHL) was ordered to be wound-up and Nayan was appointed as the official liquidator. The official liquidator sought to sell the goods, which were imported by availing duty exemption granted in favour
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2015
Lalit Hardware Ltd. (LHL) was ordered to be wound-up and Nayan was appointed as the official liquidator. The official liquidator sought to sell the goods, which were imported by availing duty exemption granted in favour of 100% export oriented unit under the scheme without payment of any customs duty by bonding the goods to the Department. Since export obligations were not fulfilled, the Commissioner of Customs claimed recovery of customs duty and central excise duty and requested the official liquidator to incorporate in the sale notice that the removal of the goods are subject to payment of duty components as the goods are bonded goods. Official liquidator refused to accept this condition. The Commissioner of Customs filed writ petition seeking prevention of removal of goods without settlement of customs duty, central excise duty and interest payable thereon. Based on the above facts, give your opinion whether writ petition in the case of a company which is in the process of liquidation by the order of company court is maintainable?
Answer & Explanation:
The Writ Petition is not maintainable. The Companies (court) Rules give wide powers to the company court to pass and order in furtherance of justice and taking into consideration of Charge created over properties, which were directed to be sold by the official liquidator under direction of the company court. The Commissioner of Custom was required to make request to the company court and appropriate direction could be framed from the company court. After the appointment of official liquidator, the entire affairs of the company had come to the hands of the official liquidator controlled by the Company Court. Hence the writ petition is not maintainable and commissioner of Customs, if desired, may approach the company court. Commissioner of Customs and Central Excise v. Official Liquidator (2007) 139 company case 591 (Mad).
Topics: Insolvency
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