9911796707
TMI Blog2024 (10) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... e under the provisions of TNPID Act as null and void? - HELD THAT:- The TNPID Act is a special enactment which is intended to protect the rights of depositors and provide a mechanism for the disbursement of the assets of the accused apart from punishing the accused. The NCLT, Chennai Bench, has relied upon the judgment of Hon'ble Supreme Court in Innoventive Industries Limited Vs. ICICI Bank and Another [ 2017 (9) TMI 58 - SUPREME COURT ] for the proposition that the provisions of the IB Code shall have effect not withstanding anything inconsistent therewith contained in any other law for the time being in force, particularly referring to Section 238 of the IB Code, 2016. A Full Bench of this Court in S.Bagavathy Vs. State of Tamil Nadu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in substance one on a matter assigned to legislature then it must be held to be valid even though it incidentally trenches on matters beyond its legislative competence. The purpose and object of TNPID Act, which has been upheld by Hon'ble Supreme Court despite its marginal encroachment into the Central legislations, cannot be ignored. In view of the judgment of Hon'ble Supreme Court, this Court has no hesitation to hold that the order of NCLT is contrary to the settled principles of law. Therefore, this Court agrees with the submission of the learned Additional Advocate General reiterating the legal grounds raised in this writ petition. Petition allowed. - THE HONOURABLE MR. JUSTICE S. S. SUNDAR AND THE HONOURABLE MR. JUSTICE K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebtors seized by them to the applicant immediately in order to enable the applicant to carry out the duties in accordance with the IB Code, 2016. (3) Though notice was sent to the writ petitioner and the Investigating Officer appeared before NCLT, Chennai Bench, the Tribunal passed an order directing the writ petitioner to hand over all the records to the Corporate Debtors including Books of Accounts along with the Chit Security Deposits holding that the IB Code override the provisions of TNPID Act. It is to be noted that the attachment made vide G.O.Ms.No.73, Home [Police] Department dated 31.01.2019 was set aside and was declared null and void. Aggrieved by the same, the present writ petition is filed. (4) The core issue that arise for co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the judgments or the journal in which the judgments relied upon, are reported. (6) A Full Bench of this Court in S.Bagavathy Vs. State of Tamil Nadu rep.by it Secretary, Law Department, Chennai and Others reported in 2007 [2] CTC 207 considered the constitutional validity of TNPID Act, elaborately. One of the issues raised before the Full Bench was regarding the legislative competence of the State to promulgate the law. Taking note of the primary object of the State legislation, the Full Bench held that the enactment is meant for public safety and to protect the interest of public and applied Doctrine of parens patriae by reminding sovereign power and duty of the State to shoulder responsibilities in public interest. Referring to various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which as already observed needs no deliberation; b. the impugned Tamil Nadu Act does not fall within the legislative field of the Union List (List-I); and c. though there is trenching, the same is only incidental, which is permissible in law.'' (7) The Hon'ble Supreme Court in K.K.Baskaran Vs. State represented by its Secretary, Tamil Nadu and Others [2011 [2] SCC 793], considered whether TNPID Act is beyond the legislative competency of State legislature as it falls within Entries 43, 44 and 45 of List I of VII Schedule of Constitution. It was argued before Hon'ble Supreme Court that TNPID Act is liable to be struck down as the field of legislation is already occupied by legislation of Parliament being RBI Act, 1934, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les of law. Therefore, this Court agrees with the submission of the learned Additional Advocate General reiterating the legal grounds raised in this writ petition. (10) As a result, the writ petition stands allowed and the impugned order of NCLT dated 19.03.2019 in MA/697/2018 in CP/381/IB/2018 is quashed. (11) While disposing of the matter, we are inclined to share our thoughts in the implementation of the provisions of TNPID Act. This Court finds that the Special Court dealing with cases registered under TNPID Act, are forced to think that in each case, hundreds of depositors should be examined to prove their case. Because of this, the matters are pending in Special Courts dealing with TNPID cases without substantial progress and it takes ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
