Cereales Y Servicios Agricolas De Burgs S.L. Vs. Sethi Agritech Pvt. Ltd. – Madhya Pradesh High Court
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Hon’ble High Court held that the plaintiffs have also averred in the plaint that the defendant has already initiated proceedings under the Securitizatoin Act for taking possession of the building structure falsely claiming that the superstructure of the building is also mortgaged, but this Court has no hesitation to hold that this is not such an issue which cannot be decided by the DRT and efforts on the part of the plaintiffs to circumvent the DRT proceedings cannot be allowed to succeed, the only purpose of which is to defeat the recovery proceedings initiated under the Securitization Act. This court is also of the firm view that as the DRT deals solely with the bank loan transaction, the subject of mortgage is something that the DRT has an expertise in handling and it cannot be said that the issue of mortgage can be decided by a civil court only.
Hon’ble High Court held that firstly, the provisions of s.529A of the Act of 1956 have come into force on 1985 whereas s.170 of the IT Act has come into force in the year 1961, thus, the subsequent provisions of s.529A of the Act of 1956 would have precedence over the IT Act. Secondly, the Act of 1956 is a special Act which govern the law regarding companies only whereas IT Act is a general Act which percolates in just about every sphere of life and is applicable to all the citizen of India when it comes to payment of Income Tax. Thirdly, it is also found that s.529A and s.530 of the Act of 1956 have already taken into account inter alia the provisions of Income Tax and thus, the harmonious reading of the provisions of the two Acts leads this court to the one and only unescapable conclusion, that s.529A of the Act of 1956 would prevail over the Income Tax Act.
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The petitioner is aggrieved by the order dated 18.11.2021, passed by Insolvency & Bankruptcy Board of India (IBBI), whereby the petitioner’s application for grant of Certificate of Registration as an Insolvency Professional (IP) under Regulation 7 of the Insolvency Professional Regulations, 2016 has been rejected by the Whole Time Member of IBBI on the ground that the petitioner is self-employed and is running a Consultancy and Valuation business and does not have the managerial experience as a salaried employee.
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