SEKSARIA COTTON MILLS LTD Vs. A E NAIK

JUDGEMENT

(1.) THIS petition involves a question of some complexity relating to the scope and effect of S. 391 of the Companies Act, 1956.

(2.) THE petitioners are a public limited Company carrying on the business of manufacturing textiles. They will be referred to hereafter as the Company. By 1958 the Company has suffered huge losses and incurred large debts. A petition for winding up was filed in his Court on 28th April 1958, and on the same day an order to wind up the Company was passed. The Official Liquidator was appointed Liquidator of the Company. He took possession of all the company's properties and records.

(3.) PRIOR to the winding up order, the company has submitted Sales Tax returns from time to time for the period between 1952 and 1958, and had also paid the amounts of sales tax that were due according to those returns. No assessment orders were, however, passed by the Sales Tax Officer concerned.