Dutta Agro Mills Pvt. Ltd.

In this case, the physical possession of Corporate Debtor has been taken over by West Bengal Industrial Development Corporation (WBIDC) (a Financial Corporation comes under the purview of Section 3 of the State Financial Corporation Act, 1951) and all the employees of Corporate Debtor have left the organization and that the physical possession of the factory cum registered office of the Corporate Debtor was under the possession of the WBIDC.
NCLT Kolkata Bench held that:
(i) No authority, post framing of IBC has been cited to substantiate the view that an earlier Special Act (have SFC Act, 1951) with a non obstante clause shall prevail over the IBC which is a later one.
(ii) The CD is a defaulter debtor but the WBIDC the Creditor Corporation is not the owner of the property hypothecated/mortgaged to it by the CD, it is rarely in control over the assets of the CD.
(iii) It is, therefore, explicit by virtue of Section 238 of IBC, the provisions of IBC will prevail over the other Statutes.
(iv) IBC, 2016 is indubitably and indisputably a Special Statute as also a later statute vis-a-vis the SFC Act of 1951, both having non obstante clause. The reach of non obstante clause of SFC Act is limited by Section 46B of the Act, whereas non obstante clause of IBC shows that it prevails in all situations. Thus, IBC as a Special statute has a non obstante clause which does not have a limited reach unlike SFC Act.