Can a Liquidator, under Section 33(5) of the IBC, be permitted to defend an Income Tax Appeal on behalf of the Joint Venture of the Corporate Debtor? – CA Rajeev Bansal, Liquidator of Isolux Corsan India Engineering & Construction Pvt. Ltd. – NCLT Chandigarh Bench
Hon’ble NCLT Chandigarh Bench held that IT Appeal is not against the Corporate Debtor. Although the Corporate Debtor is one of the Joint Venture partners of the Assessee, but the Assessee and Corporate Debtor are separate legal entities. As the Assessee is a separate legal entity than the Corporate Debtor, it apparently does not justify giving the approval to the Corporate Debtor to defend the IT Appeal against the Assessee. It is not clear, how the TDS refund amount received to the Assessee, if there is success in defending the IT Appeal, can be included in the liquidation estate.