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TMI Blog2020 (3) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... r of State Tax, (Enforcement) Division-8, Surat is hereby directed to release the assets of M/s. Electra Accumulators Ltd., the Corporate Debtor, enabling the IRP of the Corporate Debtor to collate the claims from the creditors and complete the Insolvency Resolution Process of the Corporate Debtor in a time line prescribed by the Insolvency and Bankruptcy Board of India. Application allowed. - IA NO. 690 OF 2019 in CP (I.B.) NO. 188/NCLT/AHD/2018 - - - Dated:- 20-1-2020 - Ms. Manorama Kumari, Judicial Member And Chockalingam Thirunavukkarasu, Technical Member P.P. Thakkar, Hitesh N. Jalu and Ishan Shah Adv. for the Appearing Parties. ORDER Ms. Manorama Kumari, 1. The instant IA is filed by the Applicant, the IRP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isposal of inventory and machineries attached by the GST Department. Both the aforesaid orders state that proceedings have been launched against the Corporate Debtor, the taxable person under section 62/76 of the Central Goods and Services Act 2017 to determine the tax or any other amount due from the Corporate Debtor. 4. It is further stated that IRP sent an intimation to the GST Department on 27.09.2019 informing them about the commencement of CIRP of the Corporate Debtor and declaration of moratorium under section 14 of the IB Code followed by a reminder on 30.09.2019. 5. It is submitted by the IRP that on account of the aforesaid notices, the working of the Corporate Debtor has come to a standstill and that the Applicant would not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t (Mumbai): 408105010000198 and - Plant and Machinery 6.2 It is further stated by the Respondent that provisional attachments/creation of charge orders have been passed before beginning of the moratorium period under I BC Code, 2016 and thus are effective as on date and valid in law. Findings: 7. The Hon'ble Supreme Court in Pr. CIT v. Monnet Ispat and Energy Ltd. [Special Leave to Appeal No. 6483 of 2018, dated 10-8-2018] and Innoventive Industries Ltd. v. ICICI Bank [2017] 143 SCL 625 (SC), held that whenever there is any inconsistency between IB Code and any other law, the IB Code will prevail. 7.1 It is further held by the Hon'ble NCLAT in the matter of Lalit Mishra and Ors v. Sharon Bio Medicine Ltd., that proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Government of Maharashtra under the Maharashtra Relief Undertaking (Special Provisions Act) 1958 (MRUA), the Corporate Debtor is not liable to pay any due to ICICI. On the basis of the overriding effects of IBC over MRUA, National Company Law Tribunal (NCLT) declared a moratorium and appointed Insolvency Resolution Professional (IRP). In the appeal, NCLAT held that there is no repugnancy between MRUA and IBC as they are enactments of two diverse fields. IBC has an overriding effect over the provisions of MRUA. Finally, in an appeal against NCLAT order, the Supreme Court confirms the interpretation by holding that the non-obstante clause of IBC will prevail over the non-obstante clause in the MRUA, On the issue of suspension of debt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded that during the moratorium period, the institution of suits or proceedings against the Corporate Debtor including the execution of any judgment, decree or order of any court of law, tribunal or any other authority is prohibited. Hence, the order of the Enforcement Directorate cannot be executed and section 238 has a non-obstante clause which has an overriding effect on any law contrary whereas in defence, it is stated that IBC is civil legislation and cannot be given precedence over the PMLA, Act. Thus the NCLT lacks jurisdiction in the matter. With the help of amicus curie, the Hon'ble Tribunal came to the conclusion that IBC has an overriding impact over PMLA on the basis of objects of IBC maximization of value of an asset, qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a task in itself and requires a substantial number of days or months for the final judgment to be pronounced. Hence, the precious time of a resolution professional will be spent in obtaining judgments in such matters. Directly or indirectly, such litigation hampers the whole process of CIRP. Accordingly, such litigation affects the stakeholders of the corporate debtor. In another matter, Abhishek Stock Broking Services (P.) Ltd. v. Shree Ganesh Jewellery House (I) Ltd. (C.A.No. 839/KB/2018 (NCLT - Kol.), the assets of the corporate debtor were under the possession of the enforcement agencies leading to undetermined valuation of the assets of the corporate debtor. The resolution professional was also unable to take over the management ..... X X X X Extracts X X X X X X X X Extracts X X X X
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