(Per : HONOURABLE MR.JUSTICE V. M. SAHAI) 1. We have heard Mr.R.D.Dave, learned counsel appearing for the appellants and Mr.N.K.Majmudar, learned counsel appearing for the respondent. The respondent took loan from Gujarat State Financial Corporation Ltd. (For short "the Corporation"). The total amount of Rs. 34 lacs was advanced to the respondent. The agreement in clause-7 provided that in addition to the EMI, the respondent was also liable to pay taxes including sales tax. Subsequently, the respondent committed default in payment of amount and therefore, the respondent applied for one time settlement. One time settlement was allowed by the appellant Corporation and the respondent deposited the entire amount in compliance of the one time settlement. So there remained no default of the respondent. There is no dispute with regard to the loan between the parties now.
2. The only dispute which the appellants are raising in this Appeal is that as per the terms of the agreement, the respondent was liable to pay sales tax amount with regard to loan advanced by the appellant Corporation for the purchase of machineries. This liability to pay sales tax is not disputed by the respondent, but the contention of Mr.N.K.Majmudar, learned counsel appearing for the respondent is that unless the appellants fix as to what amount of sales tax is to be paid by them and further the appellants should give details of the amounts of sales tax which has been paid by the appellants or realised by the appellants from the respondent, till then there will be no liability. Therefore, a detailed statement of accounts so far as sales tax has to be submitted by the appellants to the respondent and only then the appellant can ask the respondent to pay the amount of sales tax due from the respondent.
3. Prima facie, we are in agreement that a detailed statement of accounts with regard to sales tax due is to be submitted by the appellants to the respondent and by giving deduction of the amount of sales tax, if already paid by the respondent or realised by the appellants from the respondent and on furnishing detailed accounts as well as demand by the appellant to the respondent, the respondent will consider to make payment of amount of sales tax dues which is required to be paid by the respondent to the appellants in accordance with law. The appellant shall also furnish demand made by the sales tax department so far as the respondent is concerned and if the Corporation has received composite demand with regard to various borrowers, then the appellants shall split the amount from that composite demand which is required to be paid by the respondent to the appellant Corporation.
4. With the aforesaid direction and observations, this Appeal is finally disposed of. After the amount of sales tax is paid by the respondent to the appellants, "no due certificate" shall be issued by the Corporation to the respondent. The entire exercise shall be completed by the appellants within a period of two months from today. The order of the learned Single Judge dated 20.7.2011 passed in Special Civil Application No.511 of 2010 stands modified to the aforesaid extent. If any amount is required to be paid by the respondent, then "no due certificate" shall be issued after payment of such outstanding amount and if no amount is required to be paid by the appellants, then "no due certificate" shall be issued by the appellants to the respondent forthwith.
5. In view of the decision in the Appeal, both the civil applications do not survive.
(V.M.SAHAI,J) (A.J.DESAI,J) ***vcdarji