CIRP Process- Search/Seizure/Raid by GST/Income Tax

Claims made by Income Tax Dept. in pursuance to the assessment proceedings were finalised after the approval of Resolution Plan by Adjudicating Authority – Assistant Commissioner of Income Tax Vs. RP of Diamond Power Infrastructure Ltd. and Ors. – NCLAT New Delhi

Hon’ble NCLAT held that in the present case, the claims made by the Appellant in pursuance to the assessment proceedings were finalised after the approval of the resolution plan by the CoC and the Adjudicating Authority. Allowing the claim at this belated stage would unleash the hydra-headed monster of undecided claims on the SRA and would have the effect of setting the clock back causing further delay in the CIRP of the Corporate Debtor, which does not commend us.

Claims made by Income Tax Dept. in pursuance to the assessment proceedings were finalised after the approval of Resolution Plan by Adjudicating Authority – Assistant Commissioner of Income Tax Vs. RP of Diamond Power Infrastructure Ltd. and Ors. – NCLAT New Delhi Read Post »

Search and Seizure of records of Corporate Debtor and issuance summons to Resolution Professional by GST Department during CIRP are violation of mortarium under section 14 of IBC, 2016 – K. Easwara Pillai – RP Mangomeadows Agricultural Pleasure Land Pvt. Ltd. Vs. Goods and Services Tax Department – NCLT Kochi Bench

In this case, GST Department after submitted its claim in CIRP, all of a sudden raided the premises of the Corporate Debtor after issued summon to Suspended Managing Director of the Corporate Debtor. The raid was conducted and seized all the account documents and also sent a summon to the Resolution Professional to appear for an inquiry.
The question before NCLT Kochi Bench was whether the search and seizure of records of the corporate debtor and issuance of summons to applicant/resolution profession are violative of mortarium order passed under section 14 of IBC, 2016?
Read here landmark decision of the NCLT Kochi Bench.

Search and Seizure of records of Corporate Debtor and issuance summons to Resolution Professional by GST Department during CIRP are violation of mortarium under section 14 of IBC, 2016 – K. Easwara Pillai – RP Mangomeadows Agricultural Pleasure Land Pvt. Ltd. Vs. Goods and Services Tax Department – NCLT Kochi Bench Read Post »

Whether the High Court ought to interfere, under Article 226/227 of the Constitution, with an Order passed by the NCLT in a proceeding under the Code- M/s Embassy Property Developments Pvt. Ltd Vs. State of Karnataka & Ors – Supreme Court

Though NCLT and NCLAT would have jurisdiction to enquire into questions of fraud, they would not have jurisdiction to adjudicate upon disputes such as those arising under MMDR Act, 1957 and the rules issued thereunder, especially when the disputes revolve around decisions of statutory or quasijudicial authorities, which can be corrected only by way of judicial review of administrative action. Hence, the High Court was justified in entertaining the writ petition.

Whether the High Court ought to interfere, under Article 226/227 of the Constitution, with an Order passed by the NCLT in a proceeding under the Code- M/s Embassy Property Developments Pvt. Ltd Vs. State of Karnataka & Ors – Supreme Court Read Post »

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