No Bar to Suit for Recovery of Property Tax against Sick Company if it does not Affect Company’s Revival Scheme: Supreme Court in the case of Fertilizer Corporation of India [Read Judgement]
The court viewed that the suit was a simple suit for recovery of money towards the dues arising under the alleged illegal deductions under the contract. This cannot be said to be a proceeding like execution, distress or the like and hence the suit was not hit by Section 22(1) of the 1985 Act.
In the case of Fertilizer Corporation of India, the Supreme Court held that there is no bar for recovery proceedings of property tax against the Sick Company if it does not affect the scheme of the revival of the Sick Company. M/s Coromandal Sacks Private Limited is the original plaintiff, is a company registered under…
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