Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2023 (8) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 176 - NATIONAL COMPANY LAW TRIBUNAL , KOCHI BENCHSearch and seizure of records of the corporate debtor and issuance of summons to applicant/resolution profession during moratorium period - HELD THAT:- The Karnataka High Court in Associate Décor Limited Rep. by Resolution professional vs Deputy Commissioner of Commercial Taxes [2021 (12) TMI 1408 - KARNATAKA HIGH COURT], after referring Apex court citations held that the notice issued under section 65 the State Goods and Services Tax Act 2017, R/w Rule 101(4) of KGST Rule, informing the discrepancies found in audit and asked the registered person to submit reply, is hit by mortarium order passed under section 14 of IBC 2016 and stayed/kept in abeyance, the proceedings pursuant to the said impugned notice till the lifting of moratorium. The Government of India, Ministry of Finance, finance Department also issued Circular No.134/04/2020-GST under section 168(1) CGST Act, Annexure A1 of the petition explaining that no coercive action to be taken in respect of dues of GST pertaining to corporate debtor, under the CIRP. The respondent despite the supra guidance taken the coercive action - the acts of the respondent undermined the authority of Resolution professional and because of seizure of Books of accounts of the corporate debtor causes much inconvenience and paralyzed the Resolution process, the same shall be completed in time bound manner. In the circumstances it is concluded that the search and seizure of records of the corporate debtor and issuance summons to applicant/resolution profession are violative of mortarium order passed under section 14 of IBC, 2016 - the respondent are directed to return all the records seized from the premises of the corporate debtor mentioned in seizure mahazar - summon dated 13.03.2023 issued by the respondent to the corporate debtor is hereby set aside - respondent is hereby directed to pay a compensatory cost of Rs.50,000/- to the applicant towards the CIRP cost. Petition allowed.
|