REGENT COMPUTRONICS PVT. LTD.

Fairgrowth Financial Services Ltd., In Re Appellant

V/S

ABC Respondents

Referred Judgements :-

SABAPATHI RAO V. SABAPATHI PRESS CO. LTD. [REFERRED TO]
CHATTURAM V. COMMISSIONER OF INCOME TAX [REFERRED TO]
INCOME TAX OFFICER V. OFFICIAL LIQUIDATOR [REFERRED TO]
TSAKIROGOLOU & CO. LTD. V. NOBLEE THORL [REFERRED TO]
DAVID CONTRACTORS LTD. V. FAREHAM URBAN DISTRICT COUNCIL [REFERRED TO]
SIRAJ UL HAQ KHAN OTHERS VS. SUNNI CENTRAL BOARD OF WAQF U P [REFERRED TO]
ALOPI PARSHAD AND SONS LIMITED VS. UNION OF INDIA [REFERRED TO]
C A ABRAHAM VS. INCOME TAX OFFICER KOTTAYAM [REFERRED TO]
BHOR INDUSTRIES LIMITED PRADYUMNA M D TLIACKERSEV PUSHPAKUMAR M D THACKERSEY MRS MOTIBAI M D THACKERSEY VIJAY M MERCHANT MRS PREMLATA PADAMSI HARIDAS VS. COMMISSIONER OF INCOME TAX BOMBAY CITY I [REFERRED TO]
COMMISSIONER OF INCOME TAX ANDHRA PRADESH HYDERABAD VS. BHIKAJI DADABNAI AND CO [REFERRED TO]
INCOME TAX OFFICER BOMBAY VS. SIMPLEX MILLS LTD [REFERRED TO]
UNION OF INDIA VS. INDIA FISHERIES PRIVATE LTD [REFERRED TO]
KESORAM INDUSTRIES AND COTTON MILLS LIMITED VS. COMMISSIONER OF WEALTH TAX CENTRAL CALCUTTA [REFERRED TO]
KESORAM INDUSTRIES AND COTTON MILLS LIMITED VS. COMMISSIONER OF WEALTH TAX CENTRAL CALCUTTA [REFERRED TO]
SETH MOHAN LAL IN BOTH THE APPEALS VS. GRAIN CHAMBERS LTD [REFERRED TO]
S V KANDEAKAR VS. V M DESHPANDE [REFERRED TO]
UNION OF INDIA VS. RAMAN IRON FOUNDRY:AIR FOAM INDUSTRIES PRIVATE LIMITED [REFERRED TO]
STATE BANK OF TRAVANCORE VS. MOHAMMAD MOHAMMAD KHAN [REFERRED TO]
ASSOCIATED CEMENT COMPANY LIMITED VS. COMMERCIAL TAX OFFICER KOTA [REFERRED TO]
COMMISSIONER OF WEALTH TAX MADRAS VS. K S N BHATT [REFERRED TO]
COMMISSIONER OF WEALTH TAX GUJARAT AHMEDABAD VS. VADILAL LALLUBHAI [REFERRED TO]
RAJRATHA NARANBHAI MILLS COMPANY LIMITED VS. SALES TAX OFFICER PETLAD [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. RAJA T AND SATYANARAYANA MURTHY [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. NONSHI DEVSHI KATTAWALA PTE LIMITED [REFERRED TO]
D R MEHTA VS. TIN PLATE DEALERS ASSOCIATION LTD [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. EXPRESS NEWSPAPERS PRIVATE LIMITED [REFERRED TO]
KUNJUKRISHNAN VS. STATE OF KERALA [REFERRED TO]
(PENUMETSA) CHINA VENKATARAJU VS. PULAVARTHI LAKSHMANASWAMI [REFERRED TO]
SALES TAX OFFICER, PETLAD VS. RAJRATNA NARANBHAI MILLS CO. LTD. [REFERRED TO]

JUDGEMENT

(1.) This Court has been functioning since June 1992. Now so far as two notified parties are concerned, viz., the Harshad Mehta Group and Fairgrowth Financial Services Ltd., the time is approaching for distribution of their assets under section 1 I of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 ('Special Court Act'). For this purpose, the Court has already appointed Auditors who are looking into and preparing accounts including list of assets and liabilities of these parties. In case of Fairgrowth Financial Services Ltd., under directions of Court, the custodian has also issued a public notice calling upon the parties to lodge their claims, if any. The custodian has also received claims from some parties.

(2.) In the meantime, the Income-tax Department has filed before this Court a large number of applications, for payment in priority, of tax, interest and penalty. There are approximately 24 such applications. Out of these approximately 17 applications are against the Harshad Mehta Group. By these 17 applications, a sum of approximately Rs. 1,380 crores has been claimed. I am also informed that the Income-tax Department is also in the process of reopening assessment of various notified parties. Undoubtedly this will take some time. Further by reason of the fact that many notified parties have not paid advance tax or filed income-tax returns, penalties and interest are also sought to be levied by the Income- tax Department under the various provisions of the Income-tax Act.

(3.) As is well known large amounts are due to Banks and Financial Institutions. Many of these Banks and Financial Institutions are making claims under various documents in their favour. Some of these claims are by way of mortgages, hypothecations, pledges, assignments of debts and even by way of bankers lien, set off and/or right to adjust accounts. Many of the Banks and Financial Institutions are claiming interest including in some cases penal interest.

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FAIRGROWTH FINANCIAL SERVICES LTD., IN RE Vs. ABC

Referred Judgements :-

JUDGEMENT

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