THE DISTRICT COLLECTOR Vs. K.K. DINAKARAN

JUDGEMENT

(1.) A Company by name M/s.Varuni Biomass Energy Products Private Limited started an industry for the manufacture of sulfuric acid and elemental sulphur. The company took on lease, a land owned by four brothers by name K.K.Surendranath, K.K.Dinakaran, K.K.Gnanaprabhakaran and K.K.Karunakaran. All of them were shareholders in the company and the land was of the extent of an about 3.82 acres in Survey No.235/6B of Kullallkundu Village.

(2.) The Company was granted the facility of deferred payment of sales tax by the Government of Tamil Nadu, for the period from 29.05.1994 to 28.05.2003. The facility was governed by an agreement dated 27.09.2004 entered into between the Company and the Assistant Commissioner of Commercial Taxes (East).

(3.) After the advent of Sterlite Industries in the locality, the aforesaid company went into severe financial crisis and it made an application in the year 2001 to the Government for rehabilitation under the Tamil Nadu Industrial Undertakings (Rehabilitation) Act.