2019 (12) TMI 1686 - Tri - Companies Law

Attachment of Bank Accounts by Tax Recovery Officer - Section 33(1) of I B Code - HELD THAT - It is hereby directed that the attachment be lifted in respect of the Bank Accounts detailed as Biotor Industries Limited in Yes Bank Ltd., Mukund Branch, Account No. 05966370001199 IFSC Code - YESB0000596. The Revenue Department as well as the Banks shall cooperate with the Liquidator so that without hindrance the assets of the Debtor Company, under Liquidation, can be liquidated, as well as the debt of the all the stake holders can simultaneously be satisfied in the proportion of their respective claims subject to availability of funds - the directions Application of the Liquidator is allowed.

Summary

Issues:
1. Attachment of Bank Accounts by Tax Recovery Officer
2. Refund of outstanding CIRP and liquidation costs
3. Admitted claims of respective departments
4. Distribution of debt as per Section 53 of I&B Code
5. Directions for lifting the attachment and sale of property
6. Cooperation required from Revenue Department and Banks

Analysis:

1. The Application was submitted by the Liquidator of a Corporate Debtor, expressing grievance over the attachments of Bank Accounts made by the Tax Recovery Officer, Income Tax Department. The Liquidator sought the release of the accounts and refund of specific amounts towards outstanding CIRP and liquidation costs. The Tribunal considered the details provided and directed the lifting of the attachment on identified Bank Accounts.

2. Referring to a previous Order, the Tribunal highlighted the distribution mechanism of debt as per Section 53 of the I&B Code. It was noted that claims of various departments, including Sales Tax Departments, AMPC, and Income Tax Department, had been admitted. The Tribunal directed the concerned authorities to lift the attachment to facilitate the sale of the property and subsequent distribution of sale proceeds in accordance with the Code's provisions.

3. Based on the established facts and previous judgments, the Tribunal directed the lifting of the attachment on Bank Accounts associated with the Corporate Debtor. The Revenue Department and Banks were instructed to cooperate with the Liquidator to ensure the smooth liquidation of the Debtor Company's assets and satisfaction of stakeholders' debts proportionately.

4. The Tribunal emphasized the importance of compliance with the directions issued, ensuring that the property could be sold, and the debts of stakeholders could be satisfied in line with their respective claims. The Application of the Liquidator was allowed, indicating a favorable outcome for the Applicant in terms of lifting the attachments and proceeding with the liquidation process.

In conclusion, the Tribunal's judgment addressed the issues of attachment of Bank Accounts, refund of outstanding costs, admitted claims of departments, debt distribution, lifting of attachments, and cooperation required for the liquidation process. The decision provided clarity on the steps to be taken for the sale of property and distribution of proceeds, emphasizing compliance and cooperation from relevant parties involved in the process.