HIMUDA-lessor wasn’t entitled to an unearned increase as there was no transfer of leasehold rights on an acquisition of co.
- Blog|News|Company Law|
- < 1 minute
- By Taxmann
- |
- Last Updated on 18 August, 2021
Latest from Taxmann
Case details: Mahle Filter Systems India Ltd. v. Himachal Pradesh Urban Development Authority (HIMUDA) - [2021] 129 taxmann.com 74 (Himachal Pradesh)
Judiciary and Counsel Details
-
- Vivel Singh Thakur, J.
- Ms. Manisha Gandhi, Sr. Adv., Suvineet Shamra and Rahul Mahajan, Advs. for the Petitioner.
- Bhupinder Gupta, Sr. Adv., Ajeet Singh Jaswal, Adv., Desh Raj Thakur, Addl Adv. General, R.P. Singh, Adv., General, T.S. Chauhan and Abhay Kaushal, Advs. for the Respondent.
Facts of the Case
In the instant case, Respondent-Authority allotted two industrial plots on lease to petitioner company whereupon petitioner established its manufacturing facilities. However, terms of lease put bar on petitioner on selling, transferring, or otherwise parting with possession of whole or any part of industrial plots without previous consent of Authority . Later on, the petitioner acquired another company.
It was a case of respondent that pursuant to a said acquisition, leasehold rights of said plots had been transferred by petitioner in name of acquired company without previous consent of the respondent, causing the violation of lease deed warranting payment of 50 percent amount of unearned increase to said Authority.
High Court Held
However, the High Court noted that pursuant to a said acquisition, assets of the petitioner had not been transferred rather assets of acquired company had been transferred in favour of the petitioner. There being no transfer of leasehold rights of industrial plots, no previous consent of respondent-authority was required and consequently, Authority was not entitled to claim a 50 per cent unearned increase.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
