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

TMI Blog

Home

2018 (10) TMI 1717

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... art the corporate insolvency resolution process (in short, "CIRP") of the corporate debtor as the corporate debtor was unable to pay sum of Rs. 41,55,500 towards the supply of various pesticides and herbicides. 2. Before filing this petition, the operational creditor had raised a demand notice dated June 10, 2017 to the corporate debtor under section 8 of the I and B Code. The demand notice was received by the corporate debtor. They sent a reply dated June 16, 2017 denying the debt. It is contended that in view of the provisions of section 16G(1)(c) of the Tea Act, 1953, no suit or proceeding can be initiated against the tea company without consent from the Government. Hence, this petition is not maintainable. It is also contended that vid .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... uch company or for the appointment of receiver in respect thereof shall lie in any court except with the consent of the Central Government. This provision is applicable to tea companies of which the management is taken over by the Central Government or Tea Board before investigation of affairs of such company or otherwise. In this case, admittedly by Notification No. S. O. 260(E), dated January 28, 2016, Tea Board of India (Ministry of Commerce and Industries) has taken over the affairs and management of the corporate debtor tea company. In view of this, it appears to me that this petition under section 9 of the I and B Code is not maintainable without consent of the Central Government. 7. Learned counsel for the operational creditor submi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ssed by the hon'ble Calcutta High Court, management of tea gardens lies with the corporate debtor. However, I hold that it is not consent of the Government to start the CIRP against the corporate debtor. The corporate debtor is in control of affairs of seven tea estates as an interim arrangement and notification dated January 28, 2016 is still in force. 10. Section 238 of the I and B Code states that the provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. However, in my considered opinion, the Tea Act, 1953 is a special legislation governs the tea industries and tea companies. It provi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... his petition after giving due notice under section 8 of the I and B Code to the corporate debtor. Moreover, in the case of Macquarie Bank Ltd. v. Shilpi Cable Technologies Ltd. [2018] 1 Comp Cas-OL 644 (SC), the hon'ble Supreme Court cleared this aspect holding that a notice under section 8 of the I and B Code can be sent by an authorised representative of the operational creditor. 13. In short, considering the facts of the case and various provisions of law as discussed, I hold that this petition under section 9 of the I and B Code cannot be admitted unless the operational creditor seeks consent from the Central Government as per section 16G(1)(c) of the Tea Act, 1953. Hence, I pass the following order : ORDER The petition filed by .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates