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2020 (10) TMI 388 - Tri - Insolvency and BankruptcySanction/approval of the Respondents for attachment of the properties of the Corporate Debtor - violation of Section 14 of the Code - release of properties of the Corporate Debtor in favor of the application - HELD THAT:- This Adjudicating Authority is of the considered view that once the CIRP is triggered and moratorium is imposed, all the assets and properties come under the possession of the Resolution Professional and the CoC. The Insolvency and Bankruptcy Code, 2016 was enacted with a view to bring about a complete reorganization and insolvency resolution of Corporate Debtors in a time bound manner and to inspire life into a Corporate Debtor struggling to repay its debts. Section 238 was inserted in the Code. Provisions of this Section 238 override other laws - The Income Tax Department is not in order to attach the properties of the Corporate Debtor when CIRP of the Corporate Debtor has started and the Resolution Professional is the custodian of the properties of the Corporate Debtor. The properties attached need to be returned to the Resolution Professional so that Corporate Insolvency Resolution Process is completed in time. The Respondents No. 1 and 2 are directed to release the properties of the Corporate Debtor in favour of the applicant - The Income Tax Department may lodge their claim with the Resolution Professional with documents in support of their claim as an Operational Creditor and the Resolution Professional is directed to examine the same as per the provisions of the Code. Application disposed off.
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