Delhi High Court ordered that Tata Steel BSL Limited cannot be prosecuted & is liable to be discharged u/s 32A of the IBC but the order will not affect the prosecution of the erstwhile promoters or any of the officers who may be directly responsible for committing the offences in relation to the affairs of Bhushan Steel Limited- Tata Steel BSL Limited & Anr Vs. Union of India & Anr.-Delhi High Court
Hon’ble High Court held that it is clear from the express language of the provision of section 32A of the Code that a Corporate Debtor would not be liable for any offence committed prior to commencement of the CIRP and the corporate debtor would not be prosecuted if a resolution plan has been approved by the Adjudicating Authority. In the present case, there is no dispute that a resolution plan has been approved by the Adjudicating Authority (NCLT) and in the circumstances, there is much merit in the contention that the petitioner cannot be prosecuted and is liable to be discharged. The petition is, accordingly, allowed and the impugned order dated 16.08.2019 and the impugned summons dated 21.08.2019, are set aside. The impugned compliant (CC No. 770/2019) against the petitioner, is also set aside. Further the High Court clarified that this order will not affect the prosecution of the erstwhile promoters or any of the officers who may be directly responsible for committing the offences in relation to the affairs of the petitioner company.
