2019 (2) TMI 604 - SC - Insolvency and Bankruptcy

Stay of the Corporate Insolvency Resolution Process initiated against the petitioner - Held that - Corporate Insolvency Resolution Process being processed against the petitioner, there is no reason to keep this Special Leave Petition pending. The proceedings before the National Company Law Appellant Tribunal (NCLT) cannot be interfered with in this Special Leave Petition - SLP Dismissed.

Summary

Issues involved:
1. Petitioner seeking stay of Corporate Insolvency Resolution Process.
2. Payment of tax by petitioner in installments.
3. Dismissal of the Special Leave Petition and related applications.

Analysis:

1. Petitioner seeking stay of Corporate Insolvency Resolution Process:
The petitioner filed I.A.No. 168557/2018 seeking a stay of the Corporate Insolvency Resolution Process initiated against them to allow payment of the fourth installment of five crores. The senior counsel for the petitioner informed the court that the first three installments had already been paid. The court, considering the ongoing Corporate Insolvency Resolution Process, found no reason to keep the Special Leave Petition pending. After hearing both sides, the court concluded that interference with the proceedings before the National Company Law Appellant Tribunal (NCLT) was not warranted in the Special Leave Petition. Consequently, I.A.No.168557/2018 was dismissed, and the Special Leave Petition was also dismissed, with any pending applications disposed of accordingly.

2. Payment of tax by petitioner in installments:
The court acknowledged the submission by the learned Additional Advocate General for the State of Tamil Nadu regarding the petitioner's conduct of collecting tax but not paying it, deeming it as deserving of criticism. However, considering the peculiar facts and circumstances of the case, the court decided to grant the petitioner the benefit of paying the outstanding amount in installments along with penal interest, as per the applicable statute. The court directed the petitioner to pay rupees five crores per month, starting from August 2018, with a strict deadline of the 25th of each month for payment. It was explicitly stated that no extensions would be granted for payment beyond the specified terms.

3. Dismissal of the Special Leave Petition and related applications:
In the context of the Corporate Insolvency Resolution Process and the petitioner's request for a stay, the court found no grounds to continue with the Special Leave Petition. After considering the arguments presented by both parties, the court decided not to interfere with the proceedings before the NCLT through the Special Leave Petition. Consequently, the court dismissed I.A.No.168557/2018 and the Special Leave Petition itself, ensuring the resolution of any pending applications associated with the matter.