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TMI Blog2021 (1) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the collection of due by the Respondent during CIRP is prohibited by moratorium under Section 14 of the Code. The Judgments referred by the Respondents is not relating to the issue involved in this Application and will not come to the aid of the Respondent. The submission of the counsel for the Respondent that previously the Corporate Debtors agreed to pay the Sales Tax due of M/s Sheelaatul Sugar Tech Private Limited, from and out of the Sales Tax refund receivable by the Corporate Debtor is unenforceable during CIRP. Hence, the submission of the Counsel for the Respondent that the Corporate Debtor has received refund of ₹ 80,00,000/- from the sales tax department and from the said amount only this recovery is made cannot be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent is the goods and services tax department who is an operational creditor in the CIRP. c. On 16/11/2019, the Applicant informed various statutory authorities like GST, EPFO etc. about the on going CIRP. d. On 19/12/2019, the Applicant informed the Axis Bank, Usmanabad about the on going CIRP and requested to freeze the debit transactions in the Corporate Debtor s Account. e. During the CIRP Period i.e. on 04/12/2019, a sum of ₹ 76,75,000/- was debited from the bank account of the Corporate Debtor and the same has been credited to the Respondent. f. It is learnt that the Respondent approached the Collector of Usmanabad for recovery of arrears of tax and on the instructions of the Collector of Usmanabad to Axi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter dated 05/08/2019, stated that they have given on lease, one of the sugar plants i.e. M/s Sheelaatul Sugar Tech Private Limited and further they undertook to pay the entire GST dues within 15-20 days. c. On 26/08/2019, the Corporate debtor submitted to the Respondent that the GST dues of M/s Sheelaatul Sugar Tech Private Limited will be paid by the Corporate Debtor and also issued cheque dated 03/09/2019 for ₹ 76,75,000/- in favour of the Respondent, drawn on Axis Bank, Usmanabad Branch. d. On the failure of the M/s Sheelatul Sugar Tech Private Limited to pay the GST dues, the Respondent was constrained to issue third party notice under Section 79(1)(c) of GST Act to the Corporate Debtor. Thereafter, the local Tahsildar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aid of the Respondent. 9. The submission of the counsel for the Respondent that previously the Corporate Debtors agreed to pay the Sales Tax due of M/s Sheelaatul Sugar Tech Private Limited, from and out of the Sales Tax refund receivable by the Corporate Debtor is unenforceable during CIRP. Hence, the submission of the Counsel for the Respondent that the Corporate Debtor has received refund of ₹ 80,00,000/- from the sales tax department and from the said amount only this recovery is made cannot be accepted. 10. The submission that this is a statutory due and hence it can be collected in this manner is against the provisions of section 14 of the Code. 11. It is beneficial to refer the following Judgments wherein it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion of the Corporate Debtor. c. State Bank of India vs. Debashish Nanda, Company Appeal (AT) (Insolvency) No. 49/2018 (MANU/NL/0081/2018) wherein it was held that:- Bank cannot debit any amount from the Corporate Debtor s account after the order of moratorium, as it amounts to recovery of amount after the order of moratorium. d. Indian Overseas Bank vs. Dinkar T. Venkatasubramanian (RP for Amtek Auto Ltd.) Company Appeal (AT) (insolvency) no. 267/2017 (2017 SCC OnLine NCLAT 608) wherein it was held that: Once moratorium is declared, it is not open to any person including Financial Creditor and the appellant bank to recover any amount from the account of the Corporate Debtor, not it can appropriate any amount towa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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