UNION OF INDIA Vs. PUNJAB WIRELESS SYSTEMS LTD.

JUDGEMENT

(1.) THE claim by the Union of India is for release of the amount to the tune of Rs. 7,42,41,168 plus interest till the date of realization in priority over all other dues. The claim is made in the hands of the Official Liquidator, who has, on the orders of the Court, sold the goods originally confiscated by the Customs Department and the sale proceeds is lying with the Official Liquidator.

(2.) THE contention of the learned Counsel is that the goods had been imported by the company -in -liquidation in the year 1998 and for nonpayment of duty, their goods had been detained by the Customs Department. The Company went into liquidation in the year 2001 and an application was moved before the Company Court by the Official Liquidator in C.P. No. 86 of 2001 for direction to secure the goods kept under the custody of the Customs. The Company Court ordered on 4 -3 -2005 for the release of goods from the custody of the Customs Department and directed the O.L. to take over the assets. In the appeal filed before a Division Bench in Company Appeal No. 1of 2006, the Customs Department placed the contention that the right to recover duty by way of selling the good could not be defeated at the instance of the Company Court. Holding that the Customs Department did not have a right under Section 142 of the Customs Act to have a statutory power to control over the custody of goods, the appeal filed by the Union of India was dismissed affirming the decision of the Company Court.

(3.) THE contentions which are now raised are contentions which have been taken up before the Company Court as well as before the Division Bench and the priorities of claim which had been urged, had been rejected.