Official Liquidator vs. V S T And Sons

Facts

The Official Liquidator, acting as the liquidator for M/s United Breweries (Holdings) Limited (in liquidation), filed a company application seeking recovery of rental dues amounting to Rs.1,61,46,517/- from the respondent-lessee, VST and Sons and Prestige Estate Projects Limited. The application also sought directions for the calculation of outstanding security deposits and a statement of rent paid and payable. During the pendency of the application, the respondent vacated the premises and cleared the rental dues. The Official Liquidator sought interest on the delayed payment. The Court had previously authorized the Official Liquidator to collect outstanding rental amounts and raise invoices considering GST provisions.

Held

The Court held that the respondent has vacated and handed over possession and cleared the rental dues. Regarding the claim for interest on delayed payment, the Court directed the respondent to pay interest at the rate of 9% per annum for the period from 29.08.2018 to 23.01.2024. In relation to GST liability, the Court noted the submission that GST had been paid and directed the Official Liquidator to verify this. Once the statutory liability with the Department is satisfied, the Official Liquidator is to provide the necessary records of such satisfaction to the respondent. The Court explicitly stated that this order is passed in the peculiar facts of this case and will not be deemed a precedent for other tenants. The company application was disposed of.

Key Issues

1. Whether the Official Liquidator is entitled to claim interest on the delayed payment of rental dues from the respondent-lessee, considering the period from 29.08.2018 to 23.01.2024? 2. Whether the respondent-lessee has satisfied their statutory liability towards GST, and if so, what is the procedure for recording such satisfaction? Contentions of the Petitioner (Official Liquidator): The Official Liquidator contended that as per the Court's order dated 29.08.2018, they were authorized to collect outstanding rental amounts and raise invoices considering GST. The respondent paid rental dues between 29.08.2018 and 23.01.2024, and therefore, the Official Liquidator is entitled to interest on the delayed payment. Contentions of the Respondents (V S T and Sons and Prestige Estate Projects Limited): The respondents submitted that they had vacated and handed over vacant possession of the premises and cleared the rental dues. They also submitted that GST had been paid.