JUDGMENT - 1. This petition involves a question of some complexity relating to the scope and effect of section 391 of the Companies Act,1956.

2. The petitioners are a public limited company carrying on the business of manufacturing textiles. They will be referred to hereafter as the company. By 1958 the company had suffered huge losses and incurred large debts. A petition for winding up was filed in this court on 28th April,1958, and on the same day an order to wind up the company was passed. The official liquidator was appointed liquidator of the company. He took possession of all the companys properties and records.

3. Prior to the winding-up order, the company has submitted sales tax returns from time to time for the period between 1952 and 1958, and had also paid the amounts of sales tax that were due according to those returns. No assessment orders were, however, passed by the Sales Tax officer concerned.

4. After the winding-up order, the Sales Tax officer sent a letter, dated 8th August, 1958, to the official liquidator enclosing therewith a number of notices under section 14 of the Bombay Sales Tax Act, 1953, in the course of which he intimated that a sales tax inspector wo

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