Tax attachment jurisdiction bars NCLT relief for defreezing corporate debtor bank account during liquidation

An application to defreeze the corporate debtor's bank account, attached by the State tax authority, was found not maintainable before the NCLT. The request was based on the need to operate the sole bank account for liquidation expenses, but the record showed that notice had already been issued under the Gujarat Value Added Tax Act and not met within time. The proper course was to place the corporate debtor's status before the competent tax authority and seek relief through the statutory tax mechanism, rather than ask the Adjudicating Authority to intrude into that jurisdiction. The application was dismissed.

---

---

Issues: Whether the application seeking directions to defreeze the corporate debtor's bank account, which had been attached by the State Tax authority, was maintainable before the Adjudicating Authority.

Analysis: The application was founded on the liquidation of the corporate debtor and the need to operate its sole bank account for meeting liquidation expenses. The record showed that the State Tax authority had issued notice under Section 44 of the Gujarat Value Added Tax Act, 2003, and the applicant had not responded to that notice within the time stipulated. The proper course was to place the corporate debtor's status before the competent State Tax authority and seek redress there, rather than invoke the Adjudicating Authority to intrude into the jurisdiction of the statutory tax authority, which had its own mechanism for adjudication and appeal.

Conclusion: The application was not maintainable and was dismissed.

---