When the IRP is duty bound to take custody and control of the assets belonging to the Corporate Debtor, an application u/s 60(5)(c) is clearly maintainable and the Adjudicating Authority had ample jurisdiction to issue necessary direction – Pradeep Kumar Kabra, RP of M/s. Cengres Tiles Ltd. Vs. Assistant Commissioner, CGST & Central Excise – NCLAT New Delhi
NCLAT held that in view of the Circular dated 23.03.2020 issued by Central Board of Excise and Customs, the Department itself has understood that when CIRP has been initiated for recovering any amount, the claim has to be filed and no recovery can be made since moratorium has been imposed under the Code. The Department after imposition of moratorium with effect from 27.04.2022 could not have recovered its dues. The attachment of the goods of the Corporate Debtor were made before initiation of CIRP. The assets, which were attached were still the assets of the Corporate Debtor, which were in the ‘supurdagi’ of the Corporate Debtor. Department being unable to recover the amount from the attached assets, the RP has rightly filed the Application seeking a direction for release of the attachment, so that assets can be included in the assets of the Corporate Debtor for payment to the creditors.
