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2022 (2) TMI 1271 - Tri - Insolvency and BankruptcyCIRP proceedings - relevancy of stamp duties - Whether the pleas of deficit stamp duty, non-payment of stamp duty can be raised by a Corporate Debtor in a Section 7 application more so when the 'debt' and 'default' are proved even without relying on those documents? - appropriate stage and forum for raising such grievances - HELD THAT:- Section 7 application under the IBC can be filed in a simple form prescribed in the Code even without any pleadings. Similarly, the 'debt' and 'default' can be proved through the records of 'debt' and 'default' maintained by the "information utility" even without filing any documents by the party. When once the Adjudicating Authority is satisfied with these two legal requirements and if the application is complete in accordance with the code, the Adjudicating Authority has no option except to admit the Company Petition without going into any other trivial technical issues raised by the Corporate Debtor as held by Hon'ble Supreme Court in various rulings. The above plea of Stamp Duty is not available to the Corporate Debtor in the present case when once the debt and default are proved without looking into the above documents and accordingly the first issue is answered in negative. It is also pertinent to mention here that as per the terms and conditions of the NCD Subscription Agreement it is the Petitioner/Corporate Debtor that shall bear all documentation charges (including stamp duty) legal and valuation charges. Therefore, the Petitioner shall not be permitted to take advantage of his own wrong. When and before whom the issue of stamp duty has to be raised? - HELD THAT:- It is very clear from the plain reading of the provisions of Maharashtra Stamp Act and Indian Stamp Act, that a duty is cast upon the authority before whom the document is sought to be used as evidence by the party for the purpose of enforcing the contractual rights and obligations. The proper course of action that needs to be adopted is to dismiss the above Misc. Application without getting into the issue of stamp duty as it is irrelevant and uncalled for in a Section 7 Application more so when the 'debt' and 'default' are proved otherwise without looking into those documents - Application dismissed.
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