The Cy. Commercial Tax Officer v. I P^ 9tge]? Limited

its Official Liquidator attached to High Court of A.p. 89/1 and 2, Chappel Road, Hyderabad.

3. lndustrial Frnance Corporation of India,, rep. by the Dv. General Manaoer. 5_ 9-13. 8th Floor. A.G.Office, Taramandal Comp-hx, Saifabad, Hyderabat. 4. lndustrial Credit & lnvestment Corporation of lndia Ltd., rep. by the General Manager, lClCl Towers, Level lV, 1-1'l-256, Begumpet, UyaeiaOaO

5. L I.C. of lndia, rep by the Zonal Office,, South Central Zonal Office, Jeevan Bhagya. Saifabad. Hyderabad.

6. Syndicate Bank, rep. by the Chief Manager, Nampally Station Road, Hyderabad.

7. Andhra Bank, rep. by the Chief Manger, Central Office, Saifabad, Secretariat Road, Hyderabad. 8 UCO Bank, rep by the Chief Manager, S-1-gog, Ground Floor, pushpanjali Complex, Koti, Hyderabad

9. Canara Bank, rep. by_.the Chief Manager, Basheer Bagh, Hyderabad. (RR.2 to I above secured creditors) ...RESPONDENTS .--.-" ry' Company Application Under Section 16 ( c ) ot ApGST Act R/w. Rule 9 of the Company Rules, 1959 praying that the Hon,ble Court may be pleased to direct the official Liquidator to determine the claim of the applicant at par with dues to workers and other secured creditors pursuant to Sgsl;.aa 529(4) and 530 and consequentially direct the Official Liquidator to pay the same, if such determination rs accepted by the applicant set apart sales tax amount Rs.'1 ,16,338.00 due to the state by the Respondent conrpany treating as secured debt with having precedence over all other debts.. This Company Application coming on for orders upon reading the Jude's summons and the affidavit dated '12-05-2005 filed by Sri p. Manohar , working as commercial rax officer of the applicant in support of the company Application and upon hearing the arguments of speciar G.p. for c;ommercial raxes for the Applicant and Sri santhosh Jadhav , counsel for official Liquidator for Respondent No I and of Sri P V Markandeyuru, Advocate for Respondent Nos. 2 and 3 and Sri D. Gopalakrishna Advocate for Respondent Nos. 6,7 and g GOMPANY APPLICATION NO. 1282 0F 2005 IN COMPANY PETI TroN NO. s7 0F 1999 Between: The Commercial Tax Officer, Mancherial, Adilabad Diskict AND ... Petitioner 1 . Mis. The Sirsrrk Ltd.. Sirpur Kagaznagar, Adirabad District, Rep. bv the officiar Liquidator, High Court of Andhra prad-esh, Kendriya SanO, Xoii, fly'U"r"Oii. -

2. lndustrial D^evelopment Bank of lndia, 5-9-g9/1 and 2, Chapel Road, post Box.No.370, Hyderabad-500 001. ...RESPONDENTS Company Apptication Under Section i6 ( c ) of ApCiST Act R/w. Rule g of the Company Rules, 1959 praying that the Hon,ble Court may be pleased to direct the official Liquidator lo ad.iudicate the claim of the applicant at par with 5 .,' dues to workers and other secured creditors pursuant to sections 52g(A) and 530 and consequently direct the Official Liquidator to pay the same, if such determination is accepted by the applicant, and when the amounts are disbursed to the secured creditors, This Company Application coming on for orders upon reading the Judges Summons and the affidavit dated 16-05-200s fired by sri K. Jangaiah, working as commercial rax officer of the appricant in support of the company Apprication and upon hearing the arguments of special G.p. for commercial raxes for the Applicant and Sri santhosh Jadhav , counsel for official Liquidator for Respondent No.1 and Sri p.V. Markandeyuru, Advocate for Respondent No. 2 COMPANY APPLICATION No. 1283 OF 2005 b R.C.C. NO. 20 0F 2000 Between: S..TATE OF A p (CoMMERC|AL TAX DEPT.), lll. Nellore AND rep. by its Commercial Tax Officer - .. Petitioner

1. M/S CIRCAR PAPER MTLLS LTD., 3/401, Lakshmipuram, Neilore_524 OO2. ( ""-' ' ll lll , Tp, uy rhe orficiat Liqurdator, Hign Court o?A"Or,rr'Fiill"eJni,' Kendflya Sadan, Koti, Hyderabad.

2. Sjate Bank of lndia, Nellore Town Branch,, Nellore, rep. by its Branch Manager.

3. State Eank of Hyderabad, Stone Housepet Branch,, Nellore, rep. by its Branch Managei,

4. ln*strial.Devetopment Bank of tndia, 5_90-89/1 and 2, Chapel Road, P.O. Box No.370, Hyderabad. ...RESPONDENTS Company Application Under Section 16 ( C ) of ApGST Act R/w. Rule g of the company Rures, 1959 praying that the Hon'bre court may be preased to to direct the official Liquidator to give the status of the claim of the applicant at par with dues to the workers and other secured creditors pursuant to section 529 (A) & 530 and based on Section 16 ( c) of ApGST Act and consequentry direction ----4 the official Liquidator to pay the same, if such determination is accepted by the applicant. This Company Application coming on for orders upon reading the Judges Summons and the affidavit dated 1 3-09-2005 filed by Kum. S.T. prabhavati, working as Commercial Tax Officer of the applicant in support of the Company Application and upon hearing the arguments of special G.p. for commercial Taxes for the Applicant and sri santhosh Jadhav, counsel for official Liquidator for Respondent No.1 and Sri M. Narendar Reddy, r\dvocate for Respondent Nos. 2 & 3 and Sri P.V. Markandeyulu, Advocate for Respondent No. 4 COMPANY APPLICATION NO. 1315 0F 2005 IN R.C.C. NO. 10 0F 1994 Between: State of 4.f ., t"p by the Commerciat Tax Officer, Ramgopalpet Circle, Begumpet Division, Hyderabad AND - ...ifppUCeNf "

1. M/s. EIMETALIC Steets & Attoys Ltd. 1-325, p.G. R,:ad, Ranigun.j, Secunderabad, ( ln Liqn) , rep. by the Officral Liquidator, High dou'rt of A.p., Kendriya Sadan. Koti. Hyderabad.

2. l.C.l.C.l.Bank Ltd, 1-11-256, Bagumpet, Hyderabad 3. lF.C.l.,8th Floor, Taramandal, 5-9-13, p.8.No.57, Saifabad, Hyderabad. 4, lndustrial Development Bank of lndia, 5-9-89/1 and 2, Chapel Road, Hyderabad.

5. State Bank of lndia, Central Office, lndustrial Finance Branch, Rajbhavan Road, Soma.yiguda, Hyderabad.

6. Allahabad Bank, lndustrial Finance Branch, 6-3-953/3, j s, Floor, Ameerpet, Main Road, Hyderabad

7. Central Bank of India, Asset Recovery Branch, Bank Street, Koti, Hyderabad Company Application Under Section t6 ( C) of ApGST Act, R/w. Rule _9 of Company Court Rules, 1959 praying that this Hon'ble Court may be pleased to direct the official Liquidator to give status to the claim of the applicant at par with ...RESPONDENTS .'- 7 dues to the workers and other secured creditors pursuant to section 529(4) and 530 of the Companies Act based on Section 16(C) of the ApGST Act and consequently direct the official Liquidator to pay the same, if such determination is accepted by the applicant. This Company Application coming on for orders upon reading the Judges Summons and the affidavit dated 25-'10-2005 filed by Smt. G. Lavanya , working as Commercial Tax Officer of the applicant in support of the Company Application and upon hearing the arguments of Special G.p. for Commercial Taxes for the Applicant and sri santhosh Jadhav, counsel for official Liquidator for Respondent No.1 and Sri M. Narendar Reddy, Advocate for Respondent Nos. 4,5,&6. COMPANY APPLICATION No. 1317 0F 2005 IN R.C.C. NO. 22 0F 2000 Between State of A.P- , rep. by its Commerial, Tax Officer-lll, Kurnool. AND 1 . M/s Thunga.hhad_ra lndustries Ltd., Kurnool ( ln Liqn) rep. by Official Liquidator, High Court of A.P., Kendriya Sadan, Koii, Hyderabad.

2. State Bank of lndia(DBD), Main Branch, Kurnool. 3. Central Bank of lndia, Bank Street, Koti, Hyderabad ...APPLICANT ...RESPONDENTS Company Application Under Section 16 ( C ) of A.P.G.S.T. Act r/w. Rule g of Company Court Rules, 1959 praying that this Hon'ble Court may be pleased to direct the official Liquidator to give status to the claim of the applicant at par with dues to the workers and other secured creditors pursuant to section 52g(A) and 530 of the Companies Act and based on Section l6(C) of the ApGST Act and consequently direct the official Liquidator to pay the same, if such determination is o 7 a' accepted by the applicant, as and when the amounts are disbursed to the secured creditors This Company Application coming on for orders upon reading the Judges summons and the affidavit dated 16-11-2005 fired by sri M. Eswar , working as Commercial Tax Officer _ lll, of the applicant in support of the Company Application and upon hearing the arguments of speciar G.p. for commerciar Taxes for the Appricant and sri Santhosh Jadhav, counser for officiar Liquidator for Respondent No.'1 and Sri M. Narendar Reddy, Advocate for Respondent No.2 COMPANY APPLICATloN NO. 1324 oF 2005 IN R.C.C. NO. 10 0F 2001 Between: State of A.P.. reo bv its Commercial Tax Officer, Rajam Oircle, Rajam, Srikakulum AND Hyderabad. 'l ' Ivr/s ' tvrid west rron & Steer co_mpany Lrmiled. Dusi, Snkakuram District . rep bv its officiar Liquidator. High colrt.itA"Jiro p-rJe.,., HvaeiroJv!"v'l 'vv 2. lClCl Bank, lClCl Towers, Begumpet, Hyderabad. 3 lndustriar Finance corporation of rndia. opp A.G.office, saifabad, Hyderabad 4 rndustriar rnvestment Bank of rndia, United rnsurance Burdings, Basheerbagh, 5. Canara Bank, M.G.Road, Secunderabad. 6. State Bank of lndia. lndustrial Finance Branch. Topaz Building Somajiguda, 7. United Western Bank Ltd_,, Bank Street, Koti, Hyderabad. 8. Industrial Development Bank of lndia,, Chappel Road, Hyderabad. Hyderabad ..,RESPONDENTS company Apprication Under Section i6 ( c ) of A.p.c.s.T. Act r/w. Rure g of company court Rures, 1g5g praying that this Hon'bre court may be preased to to direct the officiar Liquidator to give status to the craim ,f the appricant at par with dues to the workers and other secured creditors pursrant to section 52g(A) Q.-.- 11 and Section 530 of the Companies Act and based on Section 16(C) of the APGST Act and consequenfly direct the officiar Liquidator to pay the same, if such determination is accepted by the appricant, as and when the amounts are disbursed to the secured creditors. This Company Application coming on for orders upon reading the Judges summons and the affidavit dated 25 -11-2oos fired by sri V. Badhrinath, working as commerciar rax officer of the appricant in support of the company Application and upon hearing the arguments of speciar G.p. for commerciar Taxes for the Appricant and sri santhosh Jadhav , counser for officiar Liquidator for Respondent No.l COMPANYAPP LICATION NO: 1695 OF 200s IN R.C.C. NO.5 0F 1992 Between: state of A.P. reo. bv its commerciar rax officer, Hyderguda circre, station Road, Hyderabad. . Applicant AND

1. M/S.BOPPANNA OtL M,,LLSlTD., Hyderguda. Hyderabad., rep. by its Officiat Liquidator, Attached to High Courr of hnh-;F;;L;, Kendriyls#a;, K;ii'-' Sultan Bazar, Hyderabadi

2. l.D.B,l.,.Mumbai, lDBl Towers, stn Floor, WTC Complex, Cuffe parade, Mumbai-4OO 005, Maharastra. " - - --" r

3. l.C.l.C.l Bank, lClCl Bank Towers, Bandra_Kurla Complex, Mumbai-4O0 051. 4. lFCl Bank; Chief Chairmal&..Mq1qSing- Director, tFCt Towers,6.t, Nehru Place, P.8.No.4499, New Delhi-1 10"01"9. ...RESPONDENTS company Application Under section 16 ( c ) of A.p.G.S.T. Act r/w. Rure g of company court Rures, 1959 praying that this Hon'bre court may be preased to to direct the officiar Liquidator to give the status of the craim of the appricant at par with dues to the workers and other secured creditors pursuant to section 52g (A) and section 530 0f the company Act and based on Section 16 (c) of ApGST Act v t and consequenfly direct the Official Liquidator determination is accepted by the applicant, as disbursed to the secured creditors. to pay the same, if such and when the amounts are This company Apprication coming on for orders upon reading the Judges summons and the affidavit dated 25 -11-2005 fired by sri V. Badhrinath, working as commerciar rax officer of the appricant in support of the company Application and upon hearing the arguments of speciar G.p. for commerciar Taxes for the Applicant and Sri santhosh Jadhav , counsel for official Liquidator for Respondent No. 1 COMPANYAPPLICATI oN NO. t696 0F 200s IN R.C.C, NO.2 0F 1997 Between: R]lli,Pf, t% , L"o bv its commercial rax orricer. Atcolgardens circre. AND ...APPL|CANT ' Hji ??rxmli3E[ul?.,,.1,":t1lT??[: ",i,,::,,1H;"o, (,n Liqn ) 2. lndustrial Develooment Bank of lndia, 5_9_g9/1 and 2, Chapal Road, p.B. No 370, Hyderabad (A p ) 3. lndustriar Finance corporarion of rndia Ltd.,, s-9_.r3, gth Froor, Taramandar o Comptex, Saifabad, UyAeraOJa A.pJ Bank Ltd , lClCl Towers, Street No.1, 1-11-256, Begumpet, Hyderabad ( - -* ', " ' e ve' t <) f,"f!,

5. State Bank of lndia,, Main Branch, Rajahmundry (Ap). ...RESPONDENTS company Apprication Under section 16 ( c ) of A,p.G.s.T. Act r/w. Rure g of company court Rures, '1g5g praying that this Hon'bre court may be preased to d,rect the official liquidator to give the status of the claim ,:f the applicant at par with dues to the workers and of the secured creditors pursuant to Section 529(A) and Section 530 of the Company Act and bases on section .16(C) of APGST Act and consequen,y direct the official liquidator to pay the same, if such determination is accepted by the applicant, as and when the amounts are disbursed to the secured creditors This Company Application coming on for orders upon reading the Judges summons and the affidavit dated 31 -1'r-2005 fired by sri rhonta Rajeswara Rao' working as commerciar rax officer of the appricant in support of the company Apprication and upon hearing the arguments of speciar G.p. for commercial raxes for the Applicant and sri Santhosh Jadhav , counsel for official Liquidator for Respondent No. i and sri M. NARENDER REDDY . Advocate for Respondent No. 5 COMPANY APPLICATION NO: 1697 0F 200s IN c.P.NO .122 oF 1999 Between: State of A.P.. (c.T.DFpr) rep. by its commerciar rax otficer, Arcotgardents circre. Ra;ahmundry, E.G.Distric[' AND ''^ ' ...AppLlcANT

1. M/S DELTA TUBES-pVT LTD . R-alanagaram, E.G.Diskict, ( tn Liqn.) Rep.by its officiar Liquidator, High court or Anoni, Fiai".r,, nvJuridri.L'|.,' ' i'| ' \sp 2. State Bank of lndia, Main Branch, Rajahmundry. 3. A.P State Financial Corporation,, Chirag Ali Lane. Hyderabad. ( A.p.) '|' ...RESPONDENTS Company Application under Section 16 ( C) of APGST Act, r/w. Rule _9 of company court Rures, 195g praying that this Hon'bre court may be preased to direct the official Liguidator to give the status of the craim of the appricant at par with dues to the workers and other secured creditors pursuant to section 52g (A) & section 530 of the Company Act and based on Section 16 ( C ) of ApcST Act and consequentry direct the officiar Liquidator to pay the same, if such determination is accepted by the appricant, as and when rhe amounts are disbursed to the secured creditors. tt4 COMPANY APPEAL NO: 31 OF 2008 R.C.C.No. 14 of '1999 Company Appeal Under Rule 164 of Company Court Rules 1959 Ryw. Section 16 ( C ) of the APGST Act, 1957 aggrieved by the order of the learned Official Liquidator in OL /AP/ Claims /RCC No. 14/1999/2008/107 dated 21-1O-2OOB Between: COMMERCIAL TAX OFFICER, Basheerbagh Circle, Old K.akatiya Building, Nampally Station Road, Hyderabad. AND ...APPELLANT M/s. Sri Laxmi Saraswathi Papers Ltd., 204, Paigh Plaza, Basheerbagh, Hyderabad ( ln Liquidation ) Rep. by the Official Liquidator , High Court of A.P., Kendriya Sadan, Koti, Hyderabad. ...RESPONDENT C.A. NO: 1504 OF 2008 Petrtion under Section 16 ( C) of APGST Act R/w. Rule 164 of Company Court Rules. 1959 prayrng thal in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the official Liquidator to set apart and pay th€, Sales tax dues of Rs.2,34,25,2651- payable to the state by the respondent company treating it as a secured debt, having precedence over all the other debts in terms of Sec. 16-C of the APGST Act, 1957. Counsel for the Petitioner: GP FOR COMMERCIAL TAX (TG) Counsel forthe Respondent: SRI SANTOSH JADHAV .="-' LD COMPANY AP PEAL NO: 12 OF 2015 C.P. No.35 of1985 ln the matter of the Companies Act, 1956 And ln the matter of M/s. A.P. Carbides Ltd. ( ln Liquidation ) Between: The Commercial Tax Officer, Agapaura Circle, Abids Division, M.J. Road, Nampally, Hyderabad, Represented by its CTO G.J.S. Praveena D/o. G.BM. Rai, aged 46 years Occ: C.T.O., O/o. The Commercial Tax Office, Agapura Circle, Abids Division, M.J. Road, Nampally, Hyderabad .. Appellant And M/s. A.P. Carbides Ltd. ( ln Liquidation)

1. The Official Liquidator, High Court of Andhra Pradesh, and the Liquidator of 2. A.P Carbides Ltd., Hyderabad (ln Liquidation) Rep. by its Official Liquidator, High Court of Judicature at Hyderabad for the State of Telangana & A.P,. .. ResPondents Company Appeal Under Rule 164 of Company Court Rules 1959 praying that the Hon'ble Court may be pleased to allow the Appeal by setting adiet he impugned order passed by l"t Respondent in OUAP/F-69 /CP-35/85/Claims 12015137 4 dated 28-8-201 5. l.A. NO: 1 OF 2015(COM PA. NO: 1841 OF 2015) Petition under Rule 9 of the Company ( Court ) Rules, 1959 praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may bd pleased Pass an order in setting aside the order passed by Respondent No.1 in OL/AP/F-69/CP-35/85/Claim s12O151374 dated 28-O8-2015 consequently directing respondent No.1 to receive the assessment orders as the Proof of Debt . counsel for the Appellant : SPL. GP FOR COMMERCIAL TAXES Counsel for the Respondent : SRI SANTHOSH JADHAV The Court made the following COMMON ORDER @ THE HON'BLE SRI JUSTICE T. VINOD KUMAR COMPANY APPEAL No.s OF 2OOs RCC.No. Q9 of 2OO2 & COMPANY APPEAL No.21 OF 2OOs RCC.No LN 07 of 1996 & cOMPANY APPLICA TION No.94 8 0F 200s RCC.No.2 OF l995 & qou_paNv epplrceTro 2OOS LN RCC.No.57 of 1999 & COMPANY APPLICATION No.1 2a3 0F 200s LN RCC.No.2O of 2oo0 & COMPANY APPLICATI ON No.1315 oF 2()()5 RCC.No. 1O of t994 & COMPAI{Y APPLICATION No.13 17 0F 2()()s RCC.No.22 of 2OO0 & qqug4lrY 4gElLc-ArIAN No.1324 oF 2()05 RCC.No.1 0 of200i & COMPANY APPLICATION No.1695 OF 2OOs RCC.No O5 of 1992 & COMPANY APPLICA TION No.1696 oF 2005 RCC.N o.2 of 1997 & COMPANY APPLICATIO N No.1697 OF 2OOs CP.No LN

1.22 of 1999 & 2 COMPANY APPLICA TION No.452 OF 2q)z CP.No.35 of 1985 & COMPANY APPEAL No.3O OF 2OO8 CP.No.178 of 2003 & COMPANY APPEAL No.31 OF 2OOa RCC.No.14 of 1999 & COMPANY APPEAI No.12 OF 2O15 CP.No.35 of 1985 COMMON ORDER: Since, all these Company Appeals and Company Applications raise a similar question for consideration of this Court, they are all being disposed of by this Common Order.

2. For ease of reference, the prayer set out in one o[ the Company Appeals and the prayer as set out in the Judges Summons in one ol the Company Applications are extracted below: "CA.No.7377 of 2OOS For the reosons stated in the accompanging afftdauit, it is praged that this Hon'ble court may be pleased to allout tle appeal duly setting aside tle order dL23. 1 1.2004 of the respond.ent in proceedings RCC No.9/ 2002/ 04/ 510 to the ertent of treating tLe claim of tlte appeUant o.s unseatred debt and direct the tespondent to admit the claim of the appellant for a sum of Rs.49,66,252/ - a-s secured debt hauitLg precedence ouer all the secured debt and pass such other order. ... ,. i I l i 3 COMPA.No.7317 of 2OOs ......praging the Hon'ble court maA be pleased to direct the Official Liquidator to giue th.e status of tlle claim of the applicant ot par with dues to tLw utorkers and other secared creditors pursuant to Sectictn 529(A) & 530 of the Companies Act and based on Section 16(C) of APGST Act and consequently direct the OJficial Liquidator to paq tlae same, if such determination is accepted by the appli<:ant, as ond when the omounts are cii.sbursed to the seanred creditors and pass such otler order or orders as this Hon'ble Court moA deem Jit and proper in the ciranmstances of the case"

3. Hearrl learned Special Government Pleader for State Tax appearing lor appe llants / pctitioners and Sri Santhosh Jadhav, learned counscl for Ofllciat Liquidator and Sri P.V.Markandevulu, Iearned counsel appearing for respective respondcnts, in all these matLers, and perused the record.

4. All these Company Appcals and Company Appiications are prelerred by the concerncd Commercial Tax Officials of the State against the Companies-in Liquidation claiming that the tax dues of the Companies-in-Liquidation are to be given priority ovcr the sums due to the other creditors of the Companies in-Liquidation by treating the said dues on par with the dues pavable to the workers and secured creiitors.

5. The case of the appellants/ applicants is that on account of Section 16-C of the Andhra Pradesh General Sales Tax Act, 1957 (for short'ActJ the tax dues takes preceden: over the other 4 dues, and thus, sought for a direction being issued to the Official Liquidator to record their preferential claim.

6. The appellants, in some of the cases applicants, have assailed the action of the Official Liquidator in registering the claim of the petitioners only in respect of dues that have fallen due within 12 months before the order of the winding up passed by this court, as the same not being in consonance with Section 16-C of the Act, which provides for treating the eligibility under the Act to be llrst charge on the property of the dealer or such person

7. Though on behalf of the appellants/applications it has been contendcd that on account of insertion of Section 16_C in the Act, any amount of tax due, government loan extended to the dealer due to treating the deferred tax as deemed to have been paid, penalfy, interest, and in any other sum if arry, payable to be the first charge on t}re propergr of dealer or such person, it is to be noted that though Section l6_C of the Act begins with non-abstinence clause, by the use of ttre word 'notwithstanding anything to the contrary contained in any law,, the sa-id overriding effect is in relation to any other dues under the statutes o[ the State. 5

8. On the other hand, Section 5294 of the Companies Act, 1956 (for short Act 1956J, provides for overricling power with regard to preferential payments, as inserted by Act 35 of l9g5 w.e.f., 24.05.1985.

9. Further, as regards the issue as to whether the ta_x dues under the State enactments are to be given preferential treatment, by considering charge over the property of the Company-in-liquidation, rhough on behalf of appellants / applica n ts reliancc is placed on the decision rendered in the case of Stqte Bank o;f Tyqvancore a. Recouery OfJicerl, Denq. Ba.nk a. Bhikhabhai prabhudas parekh & Co.z, and Centrq.l Bank of Ind.id. a. Sto:te of Keralar, it is to be noted that the sairl issue is no longer res integra in view, of the recent decision of the Hon'ble Apex Court in the case of Industrial DetElopment Bank of India us. Superlntendent of Central Excise and. Custorns and. Other#, wherein the scope of Section 529A and also Section 53O of the Act, 1956 vis_ A-vis the provisions of the other Statutes has been explained in detail. 12007 scc online Ker 314 ' (zooo) s scc oga ' 1zoo91 a scc s+ o zo2: ttrsc zq6 6

10. The Apex Court in the aforesaid judgment had held that the provisions contained in any other statute do not in any manner indicate or override the statutory preferences in terms of Section 5294 of the Act, 1956, which treats secured creditors and workmen dues as overriding preferential payments. The Supreme Cout also held that government 'dues' limited to debts 'due and pagable'io t}l,e twelve months next before the relevant date, are to be treated as preferential payments under Section 530 of the A.ct, 1956, but are ranked below overriding preferential payments and have to be paid after the payment has been made in terms of Section 529 and 529A of the Act,

11. Thc Apex Court by referring to the judgment it Rq/ro;tltrr Naranbhai Mills. Co. Ltd. us. Scles ?ax Officer, Petlads l:.ad also explained as to u'hen the tax rrtau becom.e due and though become due, but would become 'due and payable' only when the returns were hled in terms of the Statue. L2. The Apex Court further held . that the dues prior to 12 months next to the relevant date uiz., the date of winding up of i-- the Company-in-Liquidation, can only be considered t (rggr) I scc zal 7 preferential payment under Clause (a) of sub-Section (1) of Section 530 of the Act, 1956, but are ranked below the overriding preferential payments and have to be paid only after affecting the payments in terms of Section 529 and 529A of the Act, 1956, and thus, the prior secured creditors are entitled to enforce their charge, notwithstanding the government dues payable.

13. In the aforesaid authoritative pronouncernent of the Apex Court clarifying the position of law on Section 529,4 and 530 vis-a-vis charge being claimed by the petiti,rners / appel lants under the said enactment over the property of r,he dealer or any such person, this Court is of the view that -he claim of the petitioners/appellants in the present appr:als/apptications cannot be acceded to by giving preferential ,reatment under Section 529A of the Act, i956, except for a period of 12 months prior to the relevant date i.e., date of winding up of the Companies-in-Liquidation for the purpose of preferential payment in terms of Section 53O(1)(a) ol the Act 1956.

14. Accordingiy, the Ofhcial Liquidator is dir<:cted to consider the claim of the petitioners/ appellants for a period ol 12 months prior to the relevant date uiz., date of winding up of the Companies-in-Liquidation, respectively, for r.he purpose of I I l To, l I o l I preferential payment in terms of Section 53O(1)(a) of the Act, 1956 and make necessary payment after paying the workmen dues and debts due to secured creditors, which have an overriding preferential payment as per Section 529A of the Act, 1956, from and out of the sale proceeds of the Companies-in- Liquidation.

15. Subject to the above direction, all these Company Appeals and Company Applications are disposed of. No costs. //TRUE COPY// Sd/. K. SRINIVASA RAO J NT REG]STRAR ECTION OFFICER .Telangana, Khammam Dist.

1. The Official Liquidator, M/s' Spectra Agro Chem Limited' Uppuluru' VuYYuru"' office at 1'' District. Nellore- 524 0O2 Mandal, Krishna Distnct ,'Higlic;rrt fJr lhe state.of floor corporate Bhawan, Nagole, A'!9l19Ydi Thaftiannaram Village ir"v"iri"Lgr. lttrnoal, Rang-; Reddy Distrrct Telangana State Pin code 500 680. 2. The Official Liquidator, M/s Universal Ceramics Limited Tarnaka' Hyderabad' ;. il; ofil;i liquidator, rvri. n.p. steets Limited ( ln Liquidation) , Palvancha, 4. The official Liquidator, M/s. The Sirsilk Ltd., Sirpur Kagaznagar, Adilabad S. itre'Oinciaf Liquidator, M/s Circar Paper Mills Ltd ' 3/401' Lakshmipuram ' i.r ^ rr^.!.{ 6. The Official Liquidator M/s Bimetalic Steels & Alloys Ltd' 1-325' P G' Road' z. it" 6fii"f Liquidator ti/t/s' Thungabhadra lndustrie^s Ltd ' Kurnool' 8. The Official Liquidator, ftfl.. ftf,a ft".t lron & Steel Company Limited' Dilsi' 9. The official Liquidator, M/s. Boppanna o-il Mills Ltd', Hyderguda' Hyderabad' 10. The Official Liquidator' ful/" Coa""ari Ceramics Ltd ' 11.The official Liquidator, M/s. Delta Tubes Pvt. Ltd , Raianagaram' E G'District' 'ii.iii. Omiirr Liquidator, t''tlt n'p Carbides Limited' 10-2-813' Shantinagar' 13 The Official Liquidator, M/s Team AIA Lakhi Semi - Conductors Ltd ' IDA 14.The Official Liquidator' M/s. Sri Laxmi Saraswathi Papers Ltd'' 204' Paigh Patancheru, HYderabad Plaza, Basheerbagh, HYderabad Ranigunj, Secunderabad' Srikakulam District- Pidimgoyya of Raiahmundry Hyderabad. @ i I I l : '15. The Registrar of Companies, Ministry of Corporate Affairs, Government of lndia 2nd floor Corporate Bhawan, Nagole, Bandlaguda, Thattiannaram Village Hayathnagar Mandal, Ranga Reddy District, Telangana State Pin Code 500 680. '16. The Regional Director, South Eastern Region, Ministry of Corporate Affairs, 3'd floor Corporate Bhawan, Nagole, Bandlaguda, Thattiannaram Village Hayathnagar Mandal, Ranga Reddy District Telangana State Pin Code 500 680

17. Two CCs to Special G.P. for Commercial Tax, High Court for the State of Telangana at Hyderabad. (OUT) 'l8 One CC to SRl. P. V. MARKANDEYULU Advocate [OPUC] 19.One CC to Sri M. Narender Reddey, Advocate (OPUC) 19. One CC to SRI SANTOSH JADHAV, Counsel for Official Liquidator, High Court for the State of Telangana at Hyderabad. (OPUCI

20.Two CD Copres +^- HIGH COURT l DATED:31/01/2025 COMMON ORDER , I COMPANY APPEAL Nos : 5 OF 2005 in RCC NO. 09 0F 2002 COMPANY APPEAL NO. 21 OF 2OO5 IN RCC NO. 07 0F 1996 & & COMPANY APPLICATION NO. 948 OF 2OO5 in RC.C. NO.2 OF 1995 & COMPANY APPLICATION NO. 1282 OF 2005 tN R.C.C. NO. 57 0F 1999 & COMPANY APPLICATION NO. 128 3 0F 200s rN R.C.C. NO. 20 0F 2000 & COMPANY APPLICATION NO. 131 5 0F 2005 rN R.C.C. NO. 10 0F 1994 & COMPANY APPLICATION NO. 1317 OF 2005 tN R.c.c. No. 22 0F 2000 COMPANY APLICATION [o. rsza oF 200s rN R.c.c. No. 10 0F 2001 & & COMPANY APPLICATI oN NO.'t695 oF 2005 tN R.C.C. NO. 05 0F 1992 & COMPANY APPLICATION NO. 1696 oF 2005 IN R.C.C. NO. 2 0F 1997 & COMPANY APPLICATION NO. 16 97 0F 2005 IN C.P. NO. 122 0F 1999 & COMPANY APPLICATION NO. 462 OF 2007 IN C.P.NO. 35 0F 1985 & COMPANY APPEAL No. 30 0F 200I rN c.p.No. i7B oF zbd3 COMPANY APPEAL NO. 31 0F 2008 lN R.C.C. NO. 14 0F 19 k & COMPANYAPPEAL NO. 12 oF 20'r5 tN C.P.NO. 35 0F 198 & i:j ..) t. yiE STa, ' 1 c-' ( 2 f' 21 l'lAfl 2025 I r)\rsI,ArC*€! Disposing of the all the Company Appeals and Ciompany Applications rvithout costs l_b