Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2019 (4) TMI Tri This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2019 (4) TMI 2112 - Tri - Insolvency and Bankruptcy


Issues: Application for direction to SEBI to de-attach immovable property of corporate debtor and hand over title deeds to Resolution Professional; Application for direction to Income Tax Department to de-attach immovable properties of corporate debtor and hand over title deeds to Resolution Professional.

Analysis:
1. The application before the National Company Law Tribunal sought directions for SEBI to de-attach immovable property of the corporate debtor and hand over the original title deeds to the Resolution Professional. The Tribunal noted that a petition under Section 7 against the corporate debtor was admitted, instituting a moratorium on legal proceedings against the debtor. SEBI had attached the assets of the corporate debtor based on orders by the Adjudicating Officer and Securities Appellate Tribunal (SAT), with SEBI claiming it must follow SAT's orders until modified or appealed to the Supreme Court.

2. The Income Tax Department had attached certain properties of the corporate debtor, but later de-attached them as per a revocation order. The Tribunal considered the argument based on a Supreme Court judgment that the Insolvency & Bankruptcy Code, with its non-obstante clause in Section 238, overrides other enactments like the Income Tax Act. This judgment emphasized that the Resolution Professional needed possession of the properties to fulfill statutory duties and achieve the primary objective of the Code, which is resolution of insolvency.

3. The Tribunal relied on the Supreme Court's position that the Code supersedes conflicting provisions of other laws, ensuring that the Resolution Professional can manage the debtor's affairs effectively. The Tribunal directed SEBI to de-attach the properties and hand over possession to the Resolution Professional promptly to facilitate the Corporate Insolvency Resolution Process (CIR Process) as per the Code's timeline, emphasizing the importance of allowing the Resolution Professional to carry out their duties without hindrance from other legal proceedings.

4. In conclusion, the Tribunal allowed the application, directing SEBI to de-attach the properties of the corporate debtor and transfer possession to the Resolution Professional along with all relevant records. This decision aimed to enable the Resolution Professional to conduct the CIR Process efficiently, in line with the Code's provisions and timelines, emphasizing the paramount objective of achieving resolution in insolvency cases.

Judgment:
- The Tribunal allowed the application, directing SEBI to de-attach properties of the corporate debtor and hand over possession to the Resolution Professional for effective management during the Corporate Insolvency Resolution Process.

 

 

 

 

Quick Updates:Latest Updates