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2022 (5) TMI 925 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHIPecuniary Jurisdiction - TDS amount come within the pecuniary jurisdiction of this Adjudicating Authority or not - whether non-payment of TDS amount is debt or not - HELD THAT:- In non-payment of the TDS amount by the Corporate Debtor there was no occasion for admitting Section 9 Application by the Adjudicating Authority. The Adjudicating Authority committed serious error in admitting Section 9 Application on the aforesaid submission of the Operational Creditor that non-payment of the TDS amounts is default. The consequences of non-payment of TDS are provided under Income Tax Act, 1961 and income tax authorities have ample powers to take appropriate action. Learned counsel for the Appellant submits that both the TDS amounts has already been made, which is disputed by learned counsel for the Respondent. Regarding non-payment of TDS, we are of the view that it is not for us to consider whether TDS amount have been paid or not although it has been clearly submitted at the Bar by the Appellant that they have been paid - the Adjudicating Authority has committed serious error in admitting the Section 9 Application on the ground of nonpayment of two TDS amounts. Thus, the order of the Adjudicating Authority admitting Section 9 Application is unsustainable and deserves to be set aside. Present is also a case where the Operational Creditor has misused the process of I&B Code in filing application for revival of Section 9 Application for non-payment of two TDS amounts. The process of I&B Code cannot be utilized for the above purpose, whereas present is not a case that Corporate Debtor has not paid any amount due to the Operational Creditor. The Operational Creditor has misused the process of I&B Code. Appeal allowed with a cost of Rs.1 Lakh on the Operational Creditor i.e. Respondent which shall be paid within a period of one month to the Corporate Debtor.
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