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2020 (3) TMI 761 - Tri - Insolvency and BankruptcyDirection to GST Department for detachment of the properties attached by them, being in the form of "Finished Goods", raw materials and the machineries belonging to the Corporate Debtor and to hand over to IRP of the Corporate Debtor and lodge the claim with the IRP - section 9 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- In the instant case, an application was filed by ICICI as financial creditors against the Innoventive Industries Ltd. On account of a default of payments due on credit availed by Innoventive Industries it is argued that pursuant to relief order passed by the Government of Maharashtra under the Maharashtra Relief Undertaking (Special Provisions Act) 1958 (MRUA), the Corporate Debtor is not liable to pay any due to ICICI. On the basis of the overriding effects of IBC over MRUA, National Company Law Tribunal (NCLT) declared a moratorium and appointed Insolvency Resolution Professional (IRP). In the appeal, NCLAT held that there is no repugnancy between MRUA and IBC as they are enactments of two diverse fields. IBC has an overriding effect over the provisions of MRUA. The period of completion of the CIRP is restricted to 180 days or 270 days or 330 days from the date of admission of the application. The Code in itself is a time-constrained process; hence, the attachment of assets during such process drastically affects the stakeholders of the Corporate Debtor. It is pertinent that obtaining a release of the assets from such statutory authorities is a task in itself and requires a substantial number of days or months for the final judgment to be pronounced. Hence, the precious time of a resolution professional will be spent in obtaining judgments in such matters. Directly or indirectly, such litigation hampers the whole process of CIRP. Accordingly, such litigation affects the stakeholders of the corporate debtor. It is loud and clear that IB Code is not a debt recovery tool - this Adjudicating Authority is of the considered view, that provisions of section 238 of the IB Code override the Gujarat State GST Act 2017 and Central GST Act 2017 - application allowed.
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