LAWS(BOM)-2008-2-259

KRISHNA LIFESTYLE TECHNOLOGIES LTD Vs. UNION OF INDIA

Decided On February 05, 2008
Krishna Lifestyle Technologies Ltd Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) Rule. By consent of the parties heard forthwith.

(2.) Respondent No.4 is a secured creditor of certain immovable and movable assets of M/s. Rotex Textile Mills Ltd. now in liquidation, having advanced money to M/s. Rotex Textile Mills Ltd. As there was a default in payment of the dues, Respondent No.5 issued a public notice on 8th February, 2007, inviting bids for the immovable and movable assets secured in its favour as set out in the public notice. At the auction held on 10th March, 2007, Petitioner was declared as the highest bidder. Consequent thereto, Petitioner made full and final payment of the said consideration on 22nd March, 2007 and requested Respondent No.4 to release the possession letter for the land and building, plant and machinery and the relevant original documents. Respondent No 5 as the Asset Recovery Management Services of Respondent No. 4 issued sale certificate for the immovable property and also sale certificate for the movables.

(3.) Respondent No.2 by an Order of 27-11-2001 had made a demand of duty under Central Excise Act, 1944 and had also imposed penalty against M/s. Rotex Textiles Mills Ltd. There also appear to have been other demands against M/s. Rotex Textiles Mills Ltd. These various demands as on 31-5-2007 were to the tune of Rs.62,69,660-79 with interest at applicable rates. The movables, namely, plant and machinery had been attached by serving an order of attachment dated 23-3-2005. This exercise was done pursuant to the provisions of Section 142(l)(C)(II) of the Customs Act, 1962 read with Customs (Attachment of Property of Defaulters for Recovery of Government Dues), 1995.