Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + HC Insolvency and Bankruptcy - 2017 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1907 - DELHI HIGH COURTMaintainability of petition - initiation of CIRP - institution of suits or continuation of pending suits or proceedings - HELD THAT:- The provisions of the Insolvency and Bankruptcy Code, 2016 ('Code') and in particular, s. 14 thereof have been perused. It appears to the Court that s. 238 of the Code is categorical that the Code will apply, notwithstanding anything inconsistent therewith contained in any other law for the time being in force. Sec. 14(1)(a) of the Code states, inter alia, that on the 'insolvency commencement date', the adjudicating authority shall by order declare moratorium for prohibiting "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" - That the Code will prevail over all other statutes inconsistent therewith has been explained in the recent decision in Innoventive Industries Ltd. vs. ICICI Bank [2017 (9) TMI 58 - SUPREME COURT]. In the instant case, the National Company Law Tribunal (NCLT) (which by virtue of s. 5(1) of the Code is the adjudicating authority] has by its order dt. 18th July 2017 admitted the petition under s. 7 of the Code filed by the SBI against the respondent-assessee and prohibited, inter alia, "the institution of suits or continuation of pending suits or proceedings" against the respondent. This would include the present appeal by the IT Department ('Department') against the order of the Income-tax Appellate Tribunal in respect of the tax liability of the respondent-assessee. The appeals are disposed of with liberty to the appellant-Department to revive them subject to the further orders of the NCLT.
|