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TMI Blog2020 (3) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... wo diverse fields. IBC has an overriding effect over the provisions of MRUA. The period of completion of the CIRP is restricted to 180 days or 270 days or 330 days from the date of admission of the application. The Code in itself is a time-constrained process; hence, the attachment of assets during such process drastically affects the stakeholders of the Corporate Debtor. It is pertinent that obtaining a release of the assets from such statutory authorities 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. It is loud and clear that IB Code is not a debt recovery tool - this Adjudicating Authority is of the considered view, that provisions of section 238 of the IB Code override the Gujarat State GST Act 2017 and Central GST Act 2017 - application allowed. - IA NO. 690 OF 2019, CP (I.B.) NO. 188 OF 2018 - - - Dated:- 2-1-2020 - Ms. Manorama Kumari, Judici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... working of the Corporate Debtor has come to a standstill and that the Applicant would not be in a position to manage the operations of the Corporate Debtor as a going concern as provided under section 20 of the IB Code. The IRP has further submitted that it is the duty of the IRP under section 25 of the IB Code to take control and custody of the assets over which the Corporate Debtor has ownership rights as recorded in the Balance Sheet of the Corporate Debtor including the assets that may or not be in the possession of the Corporate Debtor. 6. Opportunity was given to the Department of GST to place their concerns before this Adjudicating Authority. The Respondent Deputy Commissioner of State Tax, (Enforcement) Division-8, Surat filed their written submissions by way of an affidavit dated 30th December, 2019. 6.1 It is stated by the Respondent that Corporate Debtor is a defaulter to the statutory dues of the Gujarat State GST Department of the amount of ₹ 2,05,41,236/-. It is further stated by the Respondent that Respondent has provisionally attached/encumbered the below mentioned properties under powers given by section 83 of the Gujarat State SST Act 2017 and Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, an application was filed by ICICI as financial creditors against the Innoventive Industries Ltd. On account of a default of payments due on credit availed by Innoventive Industries it is argued that pursuant to relief order passed by 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 on account of the relief order under the MRUA, it held that on account of the non-obstante clause in the IBC, any right of the corporate debtor under any other law cannot come in the way of the IBC. Sterling SEZ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all of the following, namely: - (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority; 7.5 It may be noted that during liquidation also, according to section 33(5) of the Code, no legal proceeding can be initiated against the corporate debtor. Accordingly, there is no question of alienating or attaching any of the assets of the corporate debtor. In fact, during liquidation, according to section 35(l)(b) of the Code, the liquidator is expected to take into custody or control all the assets, property, effects and actionable claims of the corporate debtor. 7.6 The period of completion of the CIRP is restricted to 180 days or 270 days or 330 days from the date of admission of the application. The Code in itself is a time-constrained process; hence, the attachment of assets during such process drastically affects the stakeholders of the Corporate Debtor. It is pertinent that obtaining a release of the assets from such statutory authorities is a task in itself and requires a substantial number of days or mon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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