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VIBHU BAKHRU, AMIT MAHAJAN
Pr Director General of Income Tax (admn & Tps) – Appellant
Versus
Indian Plywood Mfg. Co. Pvt. Ltd. – Respondent
JUDGMENT
Vibhu Bakhru, J.
Introduction
1. The Principal Director General of Income Tax (Admn. & TPS) [hereafter `DGIT'] has filed the present petition impugning an order dated 01.07.2016 (hereafter `impugned order') passed by the Board for Industrial and Financial Reconstruction (hereafter `BIFR') in Case No.53/1995 relating to respondent no.1 - M/s The Indian Plywood Mfg. Co. Pvt. Ltd. (hereafter `the Company').
2. In terms of the impugned order, the BIFR had directed the Income Tax Authorities to comply with its earlier order dated 26.02.2013 within a period of 45 days.
3. The aforesaid order dated 26.02.2013 passed by the BIFR modified the Rehabilitation Scheme (hereafter `the Scheme'), which was approved by the BIFR under Section 18(5) of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereafter `SICA') by an order dated 13.02.2001. The Scheme was amended to the limited extent of including additional exemptions from payment of income tax under the Income Tax Act, 1961 (hereafter `IT Act').
The controversy
4. The DGIT assails the impugned order, essentially, on two fronts. First, that further concessions, as contemplated in the order dated 26.02.2013, could not be
The main legal point established in the judgment is that the modification of a rehabilitation scheme under the Sick Industrial Companies (Special Provisions) Act, 1985 must be in accordance with the ....
The scheme sanctioned by the State Government under the SICA has over-riding effect, and a court executing a decree cannot go behind the decree.
The order of the BIFR is appealable under section 25 of SICA and the writ application is not entertainable. The jurisdiction of the BIFR to give direction to the Authority providing services to the S....
The Sick Industrial Companies (Special Provisions) Act, 1985 prevails over prior agreements, enforcing conditions under Section 25F for retrenchment, thus nullifying conflicting claims based on earli....
On approval of a scheme by BIFR under Sick Industrial Companies (Special Provisions) Act, 1985, unsecured creditors has option not to accept scaling down value of its dues and to wait till rehabilita....
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