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2023 (2) TMI 1257 - HC - Income TaxProceedings by the corporate debtor consequent to insolvency proceedings - overriding nature and supremacy of the provisions of the Code over any other enactment in case of conflicting provisions by virtue of Section 238 of the Code - HELD THAT:- Clause (a) of Sub-section (1) of Section 14 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) only prohibits the institution of suits or continuation of pending suits or proceedings “against” the corporate debtor including execution of any judgment, decree or order in any Court of law, Tribunal, Arbitration Panel or other authority. It does not prohibit any proceedings by the corporate debtor. This Court in Reliance Communication Ltd. v. Rajendra P. Bansal [2023 (2) TMI 45 - BOMBAY HIGH COURT]held that a bare perusal of section 14(1) makes it clear that subclause (a) only prohibits the institution or continuation of suits or proceedings against the corporate debtor. This clearly would not be attracted in the present case as the present proceedings are an appeal filed by the corporate debtor. That being so, the moratorium can never apply to the present First Appeal since it is filed by the corporate debtor Therefore, in our view, the Tribunal was not correct in dismissing the appeal filed by Petitioner. The Tribunal, however, was correct to say that on admission of the insolvency petition filed by the financial creditor under Section 7 of the IBC, the Directors of Petitioner have become functus officio. The Tribunal gave liberty to the IRP or the RP, as the case may be, to pursue all litigations pertaining to Assessee Company in consultation with the Committee of Creditors. It also gave liberty to the IRP/RP to apply for recall of the impugned order. The Tribunal has missed the fact that the appeal itself has been filed through the Resolution Professional. Tribunal should not have dismissed Petitioner’s appeal. The impugned order to that extent is quashed and set aside.
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