Insolvency moratorium bars recovery, not tax assessment; tribunal cannot declare an assessment order void ab initio.

Under the Insolvency and Bankruptcy Code, the moratorium under Section 14 bars recovery proceedings against the corporate debtor, but it does not stop the competent authority from assessing or determining tax dues. The liquidation-stage restriction under Section 33(5) operates similarly, leaving room for lawful assessment while confining the bar to proceedings against the debtor. The National Company Law Tribunal cannot exceed its statutory remit by declaring an assessment order void ab initio; it may examine legality, but not nullify the assessment in that manner. The impugned order was set aside and the matter remitted for fresh consideration.

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Issues: Whether the National Company Law Tribunal could, in proceedings under Section 33(5) of the Insolvency and Bankruptcy Code, 2016, declare a tax assessment order void ab initio; and whether the moratorium under Section 14 bars assessment of tax dues or only their recovery.

Analysis: The moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 prohibits institution or continuation of proceedings for recovery against the corporate debtor, but it does not prevent the competent authority from determining or assessing the quantum of tax or other dues. The liquidation-stage bar under Section 33(5) similarly restricts legal proceedings against the corporate debtor, while the insolvency framework leaves room for lawful assessment and for the resolution professional or liquidator to test the legality of such assessment before the proper forum. The National Company Law Tribunal, however, had no jurisdiction to annul the assessment order itself by declaring it void ab initio, as that function lay outside the scope of the power exercised in the application before it.

Conclusion: The National Company Law Tribunal acted beyond jurisdiction in declaring the assessment order void ab initio; the assessment could be examined for its legality, but not nullified in the manner done.

Final Conclusion: The writ petition succeeded, the impugned order was set aside, and the matter was remitted for fresh consideration of the application before the National Company Law Tribunal.

Ratio Decidendi: Under the Insolvency and Bankruptcy Code, the moratorium bars recovery actions against the corporate debtor, but it does not bar lawful assessment or determination of dues, and a tribunal cannot, beyond its statutory remit, declare an assessment order void ab initio.

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