NCLT held that it has been held time and again in judgments that deducting TDS does not amount to acknowledgement of Debt. TDS can be deducted for various reasons and mere payment of TDS towards interest payable does not amount to acknowledgement of debt. The same cannot be treated as an acknowledgement of debt, more so a default of the alleged loan.
NCLAT observed that in the present case since submission of Form A is contemplated in cases other than “who has filed an Application under Section 94 and 95 on behalf of the Guarantor or Creditor, as the case may be”. The purpose of Regulations, 2019, Regulation 4(2) is that before Resolution Professional is appointed, he should give his written consent to the Adjudicating Authority. The Regulations thus clearly contemplates for those cases where appointment is to be made under Section 97(2) and (3) but the mere fact that written consent in the present case is annexed along with Form C does not in any manner affect the nature of the Application which was filed by the Creditor through Resolution Professional in place of signing the Form C written consent has been given which is done additionally by the Resolution Professional. The object and purpose both of signature and giving written consent is same and we do not find any substance in submission of Learned Counsel for the Appellant that due to non-signature of the Resolution Professional there is violation of Rules, 2019 and Regulations, 2019 fatally affecting the Application under Section 95(1).
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