Bank of India (U) Limited v NC Beverages Limited and Another
Bank of India (U) Limited v NC Beverages Limited and Another (Civil Suit Originating Summons 9 of 2021) [2022] UGCommC 123 (21 March 2022)
The court held that the dispute was not a tax dispute within the exclusive jurisdiction of the Tax Appeals Tribunal, as it did not concern a challenge to a tax assessment or decision under a taxing Act, but rather the priority of a secured creditor's rights over those of the tax authority in insolvency. The plaintiff's floating charge crystallised upon the filing of the winding up petition, giving the plaintiff a proprietary interest in the charged assets. The URA's distress and sale of the assets after the commencement of liquidation proceedings were illegal and void under section 97(1)(c) o…
Source excerpt
- Secured Transactions
- Insolvency Proceedings
- Priority Of Creditors
- Foreclosure
- Distress For Taxes
- Winding Up