Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Liability – Slump Sale Agreement dated 17.07.2010 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Land Acquisition Act, 1894 (1 of 1894) |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Liability – Slump Sale Agreement dated 17.07.2010, followed by a sale deed, was entered into between U.P State Sugar Corporation Limited-Seller (UPSSCL) and Appellant-Purchaser for UPSSCL’s loss making Amroha sugar mill – Dispute arose w.r.t outstanding liability of unpaid duty, penalty, and interest, if to be discharged by the seller or the purchaser – Subsisting dues arising out of transactions occurring on dates prior to the sale, if contingent or conditional liability or an accrued liability which may be computed or discharged at a subsequent date – Held: There is no dispute that the liability towards the duty in question for the Amroha unit are in respect of business transactions for the period anterior to the signing date of the Slump Sale Agreement – The business liability for the Amroha unit had arisen out of the operation of the unit during the period before the same was sold to the appellant, although the liability is to be quantified and discharged at a future date – When the liability is capable of being estimated with reasonable certainty, the liability is not to be treated as a contingent one and should be considered as a liability which may be discharged at a future date – Thus, the liability in question not being a contingent one, the same cannot be fastened on the purchaser who were not operating the unit, prior to the Slump Sale Agreement dated 17.7.2010 – Further, in clause 12.1 and 12.2 of the Agreement read with Clause 9 of the Sale Deed, the liability of the purchaser, for the operation and activities of the unit, arose only after the signing date – Thus, dues relating to the activities and operation of the unit upto 17.7.2010 (signing date), were the liabilities of the UPSSCL – Also, prior to 17.7.2010, the appellant was neither a dealer nor a manufacturer and therefore, had no tax or duty obligations to satisfy for the operation of the Amroha unit – Impugned order erroneously held that the liabilities for the transactions made prior to the sale agreement are to be borne by the purchaser, set aside. |
Judge | Hon'ble Mr. Justice Hrishikesh Roy |
Neutral Citation | 2022 INSC 1281 |
Petitioner | Wave Industries Pvt. Ltd. |
Respondent | State Of U.p. & Ors. |
SCR | [2022] 16 S.C.R. 1130 |
Judgement Date | 2022-12-15 |
Case Number | 9272 |
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