The main legal point established in the judgment is that the claims of the State Government cannot have preference over the claims of workmen and other secured creditors in a winding-up proceeding as per the provisions of the Companies Act, 1956.

ORDER

1. This order will decide two company applications filed by the Assistant Commercial Taxes Officer as Company Application No.24/2018 in Company Petition No.6/2004, Company Application No.6/2020 in Company Petition No.28/2003 & Company Application No.4/2021 in Company Petition No.28/2003.

2. This Court finds that issue involved in the present two applications is identical, as such by this common order, both the applications are decided.

3. This Court also finds that the prayer made in both the applications by the applicant-Commercial Taxes Department (in short 'the applicant-department') is to seek priority and preference over other creditors and to release the amount said to be due in favour of the applicant-department.

4. This Court takes the Company Application No.24/2018 as a lead case for the purpose of narrating the facts.

5. The applicant-department has pleaded that the Company M/s.Punsumi India Ltd. is under liquidation and the Officer Liquidator (in short 'the OL') had invited claims with regard to outstanding dues against the said Company. The applicantdepartment had sent its claim vide communication dated 11.08.2004 and the OL communicated that claim was not in the prescribed format and the same was time barred and delay was to be condoned from the High Court.

6. The applicant-department has pleaded that an application was filed as Company Application No.17/2014 before this Court and this Court vide order dated 07.05.2015 condoned the delay in the claim.

7. The applicant-department submitted its claim before the OL with the documentary evidence and affidavit and the OL called upon certain information from the applicant-department and the same was responded by them.

8. The OL on 11.02.2016 sent a communication in Form-70, whereby the applicant-department was allowed a sum of Rs.3,19,351/- as preferential claim under Section 530(1) of the Companies Act, 1956 (in short 'Act of 1956') and Rs.32,32,337/-as ordinary claim under Section 529/530 of the Act of 1956.

9. The applicant-department has pleaded that they made several communications with the OL for making entire payment as preferential claim and the OL informed vide communication dated 02.08.2017 that the High Court had declared 100% dividend and distributed the same amongst the workers and there was no sufficient fund in the credit of the Company-in-liquidation and the property had been sold to IFCI, who had distributed entire amount amongst the secured creditors of the Company-in-liquidation.

10. The applicant-department has pleaded that after receipt of the communication dated 02.08.2017, they again made a representation and sent reminders to the OL and pointed out that as per Section 47 of the Rajasthan Value Added Tax Act, 2003 (in short 'the Act of 2003'), first charge of the property was created in favour of the applicant-department and as such, request was made to pay the outstanding amount to the applicant-department.

11. The applicant-department has pleaded that the OL failed to Bim of the applicant-department as preferential over the other claims and considering the statutory first sr Section 47 of the Act of 2003, the applicant-is entitled for receiving the entire amount as claim and when such amount was not received, the applicant-department was constrained to file application before this Court.

12. The OL has filed reply to the application and submitted that vide order dated 23.05.2005, passed in S.B.Company Petition No.6/2004, the company was ordered to be wound up by the High Court and the OL was appointed as liquidator for conducting the winding up proceedings.

13. This Court vide order dated 16.10.2010 permitted IFCI to realize the assets by way of sale/auction and IFCI sold the assets of the company for Rs.962 lakhs to M/s.Reliable Informations Private Limited and the sale was confirmed by the High Court vide order dated 01.12.2011 and the entire sale proceeds amounting to Rs.962 lakhs were lying with IFCI. The OL has further pleaded that the High Court