CP(IB)-170/KB/2017-NCLT

Even Resolution Plan provides the payment of liabilities under sub-judice or under dispute at the time of approval of Resolution Plan, if no claim was filed within the time limit during CIRP, the same cannot be entertained post approval – MBL Infrastructure Ltd. and Anr. Vs. Employees State Insurance Corporation and Ors. – NCLT Kolkata Bench

In this case, Resolution Plan provides that payment of liabilities of the Corporate Debtor which arises out of matters which are sub judice or under dispute at the time of approval of resolution plan is to be made over a period of 7 years up to the final judgment is delivered in the sub judice matter without any interest or penalty thereon. Further the plan provides that all amounts will be paid after proper reconciliation and without prejudice to legal remedies available to the corporate debtor.

Hon’ble NCLT Kolkata Bench held that it is not the case of the respondent that the books of the corporate debtor carried this liability as a “confirmed liability”. Nothing has been placed on record to suggest that resolution professional who prepared the Information Memorandum had prior knowledge of this liability from the books of accounts. In view of above, any claim not filed prior to the approval of the resolution plan cannot be entertained.

Even Resolution Plan provides the payment of liabilities under sub-judice or under dispute at the time of approval of Resolution Plan, if no claim was filed within the time limit during CIRP, the same cannot be entertained post approval – MBL Infrastructure Ltd. and Anr. Vs. Employees State Insurance Corporation and Ors. – NCLT Kolkata Bench Read Post »

Can Income Tax Department adjust refund amount against the dues of other assessment years belonging to other periods where such dues extinguished in light of the approval of the Resolution Plan (clean slate theory) – MBL Infrastructure Ltd. and Anr. Vs. Union of India and Ors. – NCLT Kolkata Bench

Hon’ble NCLT Kolkata Bench held that:
(i) If any interest component claimed in the Form B has been admitted by the RP and has been factored into the information memorandum, the same will not be considered waived off and thus, shall be payable by the SRA.
(ii) While the Income Tax Authority had every right to pass assessment orders for the dues of the Corporate Debtor, the recovery of the same during the moratorium period would be prohibited.
(iii) Upon perusal of Orders under section 254/251/153A/143(3) of the Income Tax Act, 1961, it can be seen that the refund amounts for various years including A.Y. 2005-06, 2007-08, 2008-09, and 2010-11 have been adjusted against dues of other assessment years belonging to a period prior to the approval of the resolution plan by the Adjudicating Authority. Such dues, since extinguished in light of the approval of the resolution plan are no longer payable and any adjustment in favour thereof is not sound in the eyes of law.
(iv) The adjustment of the amounts refundable to the Applicant No.1 against such dues is bad in law and not permissible.

Can Income Tax Department adjust refund amount against the dues of other assessment years belonging to other periods where such dues extinguished in light of the approval of the Resolution Plan (clean slate theory) – MBL Infrastructure Ltd. and Anr. Vs. Union of India and Ors. – NCLT Kolkata Bench Read Post »

Tribunal cannot recall its own order approving the resolution plan, more so when approval was granted in 2017 has already been implemented – Telecommunications Consultants India Ltd. (TCIL) Vs. MBL Infrastructure Ltd. – NCLT Kolkata Bench

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Tribunal cannot recall its own order approving the resolution plan, more so when approval was granted in 2017 has already been implemented – Telecommunications Consultants India Ltd. (TCIL) Vs. MBL Infrastructure Ltd. – NCLT Kolkata Bench Read Post »

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