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TMI Blog2021 (5) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... l such time the provisions of the Code remains applicable. A plain reading of section 14 of the Code would inter alia indicate that neither any suit or proceedings can be instituted or continued before any other Authority. Sub-section (1)(d) provides that no property by an owner or lessor can be recovered which is under occupation of the Corporate Debtor. Explanation to the Section makes it abundantly clear that all the rights and privileges granted in respect of such possession shall continue and cannot be curtailed by any authority including the Central and the State Governments. All the dues claimed under the show cause notices and the consolidated notice dated 11.02.2019 admittedly relate to a period preceding the declaration of CIRP. In any case the Respondent has already presented a claim before the IRP in respect of the outstanding duty and dues. The Respondent accordingly shall stay his hands from seeking any action in terms of the notices indicated above. No order u/s 74(2) of the Code can be passed, the same being of a penal nature - application allowed. - MA No. 2642 of 2019 in C.P. (IB) No. 1687/MB/2018 - - - Dated:- 19-5-2021 - Janab Mohammed Ajmal, Hon ble M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 08.09.2015 with another notice dated 18.12.2015 granting a second opportunity to the Corporate Debtor as to why the order of eviction would not be passed. vi. No action was taken by the SEZ Authority till 05.09.2017. The Specified Officer of the Respondent on 05.09.2017 assessed that the Corporate Debtor was in arrears of ₹. 2,98,37,311/- towards duty as per the Bond-cum-Legal Undertaking in terms of the SEZ Rules on the balance capital goods imported by it. Apparently, the Corporate Debtor did not comply with the notices. The Respondent on 11.02.2019 issued a notice u/s 11(2) of the Foreign Trade (Development and Regulations) Act, 1992 (the Foreign Trade Act) to the Corporate Debtor indicating various violations by the Corporate Debtor to show cause within 15 days as to why penal action shall not be taken for non-compliance of various notices and non-payment of dues and duty. vii. The Applicant replied to the notice on 12.06.2019 inter alia indicating that the Corporate Debtor had gone into CIRP on 31.01.2019 and no proceedings against the Corporate Debtor could be taken up till completion of CIRP in terms of the moratorium declared u/s 14 of the Code. viii. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a complete code in itself as recognized by the Hon ble Apex Court in Innoventive Industries Ltd. v. ICICI Bank and Anr.: (2018) 1 SCC 407. Section 238 of the Code mandates that the provisions of the Code shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having the effect by virtue of any such law. The message set out by this salutary provision is loud and clear that the provisions of the Code would come into operation notwithstanding anything inconsistent therewith contained in any other law and such law shall cease to have any effect till such time the provisions of the Code remains applicable. 6. In addition, Section 14 of the Code specifically prohibits certain actions effective from the Insolvency Commencement Date (ICD). Section 14 may profitably be quoted as under: 14. Moratorium. (1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely: - (a) the institution of suits or continuation of pending suits or proceedings against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a contract of guarantee to a corporate debtor.] (4) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process: Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be. 7. A plain reading of the section would inter alia indicate that neither any suit or proceedings can be instituted or continued before any other Authority. Sub-section (1)(d) provides that no property by an owner or lessor can be recovered which is under occupation of the Corporate Debtor. Explanation to the Section makes it abundantly clear that all the rights and privileges granted in respect of such possession shall continue and cannot be curtailed by any authority including the Central and the State Governments. All the dues claimed under the show cause notices and the consolidated notice dated 11.02.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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