Commissioner Of Income-Tax, Bombay-I vs Suessin Textiles, Ball Bearing & ... on 11 January, 1979
The grim situation therefore is that, there is a stalemate created. Huge outstanding are payable by the respondent No. 1 company, which is neck-deep in financial trouble. There are almost no hopes whatsoever indicating that they would come out of these financial crisis. The respondent No. 1's position has become like sinking ship with no help coming from any direction. They were hoping for restructuring but that also has been dashed inasmuch as General Motors, on whom, they were pinning down their hopes, have started a plant at Gujarat with technology used by parent Daewoo company and General Motors, in no uncertain terms have written a letter to the respondent No. 1 that they are not interested in their plant and machinery. Parent company in Korea itself is on the verge of closure. What is at stake is public money. The applicant Bank so also the other Banks and financial institutions would suffer irreparable loss if the required protection is not given by the Court at this juncture. Under these circumstances, it is in the interest of all the parties and in the interest of national economy to take recourse to the salutary principles laid down by the Supreme Court in I.C.I.C.I. Ltd. v. Karnataka Ball Bearings Ltd. (supra). The plant and machinery has to be sold and dues are to be recovered.