Does IBC override notification No. 25/2015-2020 and 39/2015 issued by Directorate General of Foreign Trade (DGFT)? | Can SRA be burdened with the penalties imposed by Director General of Foreign Trade under Foreign Trade Act, 1992 for defaults committed by the Corporate Debtor before initiation of CIRP – Celebrity Life Sciences Pvt. Ltd. Vs. Union of India – NCLT Hyderabad Bench
November 12, 2024
Hon’ble NCLT Hyderabad Bench held that the scope of Notifications No. 25/2015-2020 and 39/2015 issued by Directorate General of Foreign Trade (DGFT) is primarily limited to the requirement of informing the concerned Regional Authority (RA) and the NCLT regarding any proceedings before the NCLT, particularly with respect to the outstanding export obligations or liabilities under schemes governed by the Foreign Trade Policy (FTP). However, the IBC holds overriding authority over any laws that are inconsistent with its provisions. As such, the Respondent is precluded from claiming any dues arising from the pre-CIRP period.