SC: Reserved Category Candidate Who Availed Prelims Relaxation Cannot Claim an Unreserved Seat  ||  SC: Public Sector Enterprises Cannot Act Against Retired Employees Without Clear Rules  ||  Supreme Court: Single FIR is Permissible in Mass Cheating Cases Arising From One Conspiracy  ||  SC: Courts Cannot Take Cognizance of Time-Barred Cheque Bounce Cases Without Condoning Delay  ||  SC: Exoneration in Disciplinary Proceedings Does Not Always Bar Criminal Prosecution  ||  SC: Judge Cannot Be Presumed Biased Merely Because a Litigant’s Relative Is Police or Court Staff  ||  Delhi HC: Delays From Medical Review Cannot Justify Ante-Dated Seniority For BSF Candidates  ||  Allahabad HC: Being ‘Proclaimed Offender’ Does Not Completely Bar Grant of Anticipatory Bail  ||  Delhi HC: Abortion by a Married Woman For Marital Discord is Legal under The MTP Act  ||  NCLT Kochi: Fraud Has No Time Limit and Directors Cannot Use Delay As a Defense    

Deputy Commissioner Of Income Tax vs. Ravinder Kumar Goel - (NATIONAL COMPANY LAW APPELLATE TRIBUNAL) (16 Oct 2023)

After invocation of Section 33 (5) of the IBC, the authority does not have the power to initiate recovery of dues by means of sale/ confiscation

MANU/NL/0843/2023

Insolvency

Present appeal is directed against the order passed by the National Company Law Tribunal, by which two applications, filed under Section 60 (5) of the Insolvency & Bankruptcy Code, 2016 (IBC) by the Liquidator of Supreme Tex Mart Limited (Company under liquidation) against the Deputy Commissioner of Income Tax, Punjab have been allowed.

The issue involved in this case is as to whether after the initiation of the liquidation proceedings, the Appellant being Department of Income Tax, by virtue of an assessment having been made during the pendency of the liquidation proceedings, can ask the company under liquidation for the Income Tax dues and also issue notice for recovery etc.

Section 33(5) of the IBC specifically bars any kind of legal proceedings by or against the Corporate Debtor after the liquidation order is passed but the Supreme Court in the case of Sudaresh Bhatt has made it clear that even after the imposition of the moratorium or invocation of Section 33 (5) of the IBC, as the case may be, the only jurisdiction with the authority is to assess and determine the quantum but it does not have the power to initiate recovery of dues by means of sale/ confiscation as provided.

In view of the aforesaid decision to which no contrary judgment has been cited, present Tribunal is of the considered opinion that, the learned Tribunal has committed an error in holding that the Department had the jurisdiction even to assess the company in liquidation after the liquidation order has been passed. However, there is no error on the part of the Learned Tribunal where it has held that the Department cannot on the basis of the subsequent order make recovery. Appeal disposed off.

Tags : INITIATION   LIQUIDATION PROCEEDINGS   RECOVERY  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved