9911796707
TMI Blog2025 (1) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... of notice of rule on behalf of the respondent. With the consent of learned advocates for the respective parties, the matter is taken up for final hearing, as the issue involved is very short. 3. This petition is filed under Articles 226 and 227 of the Constitution of India with a prayer to quash and set aside the impugned order dated 19.01.2023 passed by the respondent. Accordingly, the following prayers have been made :- "a) YOUR LORDSHIPS may be pleased to quash and set aside the order dated 19.01.2023 at Annexure "A" to the Petition being in contravention of Section 31 of Insolvency and Bankruptcy Code, 2016 and dicta laid down by Hon'ble Supreme Court in Ghanshyam Mishra and Sons Put. Ltd. us. Edelweiss Asset Reconstruction Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication being Interlocutory Application No. 54 of 2020 in Company Petition (I.B.) No. 199 of 2018 under Section 30(6) of the I.B. Code for obtaining the approval of resolution plan of Ld. NCLT in accordance with Section 30 read with Section 31 of the I.B. Code. 4.4. In the meantime, despite the fact that moratorium under Section 14 of IB Code was in existence, a show cause notice dated 24.07.2019 bearing number F. No. DRI/AZU/CI/ENQ-22(INT-05)/2019-Tiger was issued by Pr. Additional Director General, Directorate of Revenue Intelligence, Ahmedabad Zonal Unit, Ahmedabad and proceedings were initiated against the Petitioner for alleged violation of Customs Act, 1962, Export and Import Policy 2004-2009 and EPCG Authorization Scheme. 4.5 As pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 and judgment of Hon'ble Supreme Court in case of Committee of Creditors of Essar Steel India Ltd. Vs. Satish Kumar Gupta reported in [2019] 111 taxmann.com 234 (SC) and in case of Ghanshyam Mishra and Sons Pvt. Ltd. Vs. Edelweiss Asset Reconstruction Company Ltd., reported in (2021) 9 SCC 657. Furthermore, by virtue of Section 239 of Insolvency and Bankruptcy Code, 2016, the provisions of Insolvency and Bankruptcy Code, 2016 will prevail over all other laws including Customs Act, 1962. 6. Ms. Hetvi Sancheti appearing on behalf of the respondent has submitted that the Order-in-Original issued by the Adjudicating Authority is well reasoned. The Adjudicating Authority has confirmed the customs duty and imposed penalty after having consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greements and shareholders' agreements 8.3 INQUIRES INVESTIGATIONS ETC: All inquiries, investigations, whether civil or criminal, notices, causes of action, suits, claims, disputes, litigation, arbitration or other judicial, regulatory or administrative proceedings against, or in relation to, or in connection with the Company or affairs of the Company, pending or threatened, present or future (including without limitation, any investigation, action proceeding, prosecution, whether civil or criminal, by the Central Bureau of Investigation, the Enforcement Directorate or any other enforcement agency), in relation to any period prior to the effective Date shall be deemed to be withdrawn or dismissed by virtue of the order of the Hon& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esolution plan is duly approved by the adjudicating authority under sub-section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the corporate debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the adjudicating authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan. 102.2 The 2019 Amendment to Section 31 IBC is clarificatory and declaratory in nature and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ither against the company or against the resolution applicant will be permitted to be brought once the plan has been approved and implementation has commenced" 10. We are of the opinion that the decision of the Hon'ble Apex Court in the case of Edelweiss (Supra) applies fully and squarely to the facts of the present case. Therefore, no new customs duty, interest or penalty which has been proposed by the respondent can be levied, once the resolution plan stands approved. Further in view of the categorical binding ratio as laid down in paragraph Nos. 102.1, 102.2, 102.3, and 138 of Edelweiss (Supra), Ms. Sancheti's submissions deserve to be rejected. 11. In view of the above, the impugned order dated 19.01.2023 is hereby quashed and set as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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