United Motors Ltd. v. De Mel – sllr 1982 volume 2 page 549

In the case between United Motors Limited and Automobile Assembly & Manufacture Limited (the petitioners) and the State (respondent, v. DE MEL), the court addressed whether statutory liabilities, specifically Income Tax and Business Turnover Tax, may be deducted from compensation payable to companies whose undertakings were vested in the Government under the Business Undertakings (Acquisition) Act No. 35 of 1971. It was determined that the statutory phrase “all the liabilities” was not restricted to contractual liabilities alone, thereby permitting the deduction of tax liabilities by the Minister from the compensation. The applications contesting such deductions were accordingly refused. The decision confirmed that statutory tax obligations are properly deductible in such vesting and compe