Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 52 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL NEW DELHIDisposal of the uncleared cargo by way of auction - Right of Customs Department - Company under Insolvency Process (CIRP) - Corporate Debtor - It is submitted that the ‘Corporate Debtor’s’ ownership rights in the imported goods have been relinquished by operation of law contained in Section 48 of the ‘Customs Act, 1962’ - reliance on Section 238 of the ‘I&B Code’ - HELD THAT:- From section 48, it is clear that in case of non-clearance of the goods within 30 days or within extended period or if the title of any imported goods is relinquished after notice to the importer and with the permission of the proper officer, the goods can be sold by the Custom Authority - In the present case, the goods are in the custody of the Custom Authority, but the ownership remains with the ‘Corporate Debtor’, no step having taken for sale of goods in terms of Section 48 of the ‘Customs Act, 1962’. The ownership rights of the machineries, in question, is of the ‘Corporate Debtor’ and not of a third party, explanation below Section 18 (1) (f) & (g) is not applicable. Therefore, the ‘Resolution Professional’ has right to take control and custody of any asset, though the Customs Authority is in possession of the same for the present - during the period of ‘Moratorium’, the assets of the ‘Corporate Debtor’ cannot be alienated, transferred or sold to a third party. Section 48 of the ‘Customs Act, 1962’ relates to sale of goods in the custody of the Customs (machinery in question), in the manner as prescribed therein. The order of ‘Moratorium’ having passed by the Adjudicating Authority on 8th January, 2018, immediately thereafter it was not open to the Appellant, Commissioner of Customs or its authorities to issue an e-auction notice on 15th January, 2018, fixing date of auction of the goods on 19th January, 2018 - The aforesaid action on the part of the Appellant, officers of the Customs show that after their knowledge of the order of ‘Moratorium’ they intended to sell the machinery, in question, though it was lying with the Customs Authority since 13th April, 2009 / 27th April, 2009. No interference is called for against the impugned order dated 3rd July, 2018 passed by the Adjudicating Authority prohibiting the Customs Authority from selling the assets of the ‘Corporate Debtor’ - appeal dismissed.
|