The single bench of Justice Sunil Dutt Yadav of the Karnataka High Court has ruled that the official liquidator must verify and be satisfied with the payment to determine liability for GST or Service Tax. The official liquidator is expected to verify this payment, and once the statutory obligations to the Department have been fulfilled, the necessary documentation confirming this satisfaction will be handed over to the respondent.
The present company application has been filed seeking a direction for the respondent-lessee to pay the official liquidator a sum of Rs. 1, 61, 46,517/- and to compel the company to provide a calculation of the further outstanding security deposit, as well as a statement of rent paid and payable from the date of occupation up to the date of filing the application.
It was submitted that, during the pendency of the application, the respondent has vacated the premises, handed over vacant possession, and cleared the rental dues; however, interest for the delayed payment is still being sought.
The court has taken decisive action in the ongoing case concerning the liquidation of a company. According to the court’s order dated August 29, 2018, the official liquidator was given the authority to collect outstanding rental payments from the company’s tenants and lessees. This order, issued in the case of O.S.A. No. 5/2017, also mandated that invoices be raised in accordance with GST regulations.
It was submitted that from such date between 29.08.2018 till 23.01.2024, rental dues have been paid and the official liquidator is entitled for interest on the delayed payment.
Despite several objections, it has been acknowledged that the respondent has vacated the premises and transferred possession. Consequently, interest on the delayed payment will be set at 9% per annum for the period spanning from August 29, 2018, to January 23, 2024.
In relation to the obligation of paying GST or service tax, it has been confirmed that the GST has been duly settled. The official liquidator is expected to verify this payment. Once the statutory obligations to the Department have been fulfilled, the necessary documentation confirming this satisfaction will be handed over to the respondent.
Accordingly, it has been clarified that the court’s decision is based on the unique circumstances of the case at hand. This order should not be interpreted as setting a precedent for other tenants facing similar issues.
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