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2023 (9) TMI 139 - AT - Insolvency and BankruptcyCIRP - Consequence of the attachment on the assets of the property - Sales Tax Department can be held to be Secured Creditor or not - HELD THAT:- The Respondent Department cannot be treated as secured creditor of the Corporate Debtor - even when there is attachment of the assets, Sales Tax Department cannot be the owner of the assets and the asset continued to be owned by the Corporate Debtor and will be part of the Liquidation Estate. The Adjudicating Authority committed error in rejecting the I.A. filed by the Liquidator relying on the Judgment of Hon’ble Supreme Court in M/s. Embassy Property Development Pvt. Ltd. [2019 (12) TMI 188 - SUPREME COURT] which judgment has no application in the facts of the present case - It was held in the case that NCLT and NCLAT would have jurisdiction to enquire into questions of fraud, they would not have jurisdiction to adjudicate upon disputes such as those arising under MMDR Act, 1957 and the rules issued thereunder, especially when the disputes revolve around decisions of statutory or quasijudicial authorities, which can be corrected only by way of judicial review of administrative action. Hence, the High Court was justified in entertaining the writ petition and we see no reason to interfere with the decision of the High Court. The Order of the Adjudicating Authority in the Appeal cannot be sustained - Appeal allowed.
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