9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 6 - Tri - Insolvency and BankruptcyDirection to the State Goods and Services Tax Department to accept physical filing of returns after the commencement of CIRP - HELD THAT - The Resolution Professional is directed to complete the physical filing of the returns of GST relating to the period after the commencement of CIRP within three weeks. In respect of the claim prior to period of commencement of CIRP, the State GST may consider following the provisions of IBC, 2016 and filing their claim with the Resolution Professional in accordance with law - Application disposed off. Validity of arbitration proceedings - NCLT stated that given the moratorium that is imposed, no arbitration proceedings could go on - HELD THAT - The mandate of the new Insolvency Code is that the moment an insolvency petition is admitted, the moratorium that comes into effect under Section 14(1) (a) expressly interdicts institution or continuation of pending suits or proceedings against Corporate Debtors - This being the case, we are surprised that an arbitration proceeding has been purported to be started after the imposition of the said moratorium and appeals under Section 37 of the Arbitration Act are being entertained. Therefore, we set aside the order of the District Judge dated 06.07.2017 and further state that the effect of Section 14(1) (a) is that the arbitration that has been instituted after the aforesaid moratorium is non est in law. The steps that have to be taken under the Insolvency Code will continue unimpeded by any order of any other Court - Appeal allowed.
Issues:
1. Application under Section 14, 17(1) (d) read with Sections 18, 20 & 60 of IBC, 2016 for seeking appropriate direction regarding GST filing during CIRP. 2. Urgency in execution proceedings before the Court regarding payment by Corporate Debtor during CIRP. 3. Validity of the order passed by the Court of Learned ADJ-I in light of the moratorium under Section 14 of IBC, 2016. Issue 1: Application under IBC for GST Filing during CIRP: The Tribunal heard submissions on an application under Section 14, 17(1) (d) read with Sections 18, 20 & 60 of IBC, 2016 regarding GST filing during CIRP. The application was disposed of with a direction to the State GST Department to accept physical filing of returns after the commencement of CIRP. The Resolution Professional was directed to complete the physical filing of GST returns relating to the period after the commencement of CIRP within three weeks. Additionally, the State GST was advised to follow IBC provisions for claims prior to the commencement of CIRP. Issue 2: Urgency in Execution Proceedings during CIRP: In a specific matter of urgency regarding execution proceedings before the Court, the Resolution Professional highlighted the need for intervention due to a court order directing the Corporate Debtor to pay a specified amount. The Resolution Professional argued that the court's order was void and contrary to the provisions of Section 14 and Section 238 of IBC, 2016. Citing a Supreme Court case, it was emphasized that actions against Corporate Debtors during the moratorium period are impermissible. The Tribunal directed the native Court Officer not to take coercive steps and to cooperate with the Resolution Professional. Issue 3: Validity of Court Order in Light of Moratorium under IBC: The Tribunal addressed the validity of the order passed by the Court of Learned ADJ-I in the context of the moratorium under Section 14 of IBC, 2016. The Resolution Professional argued that the court's order was void ab-initio and non-est in law due to non-compliance with the moratorium provisions. Citing a Supreme Court ruling, it was emphasized that proceedings against Corporate Debtors during the moratorium are legally invalid. The Tribunal directed that the order passed by the Court of Learned ADJ-I was null and void, instructing against coercive actions and urging cooperation with the Resolution Professional. This comprehensive analysis of the Tribunal's judgment highlights the key issues addressed, the legal arguments presented, and the directives issued by the Tribunal in each specific matter brought before it.
|
