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of <h1>Supreme Court Upholds Precedent: Unclaimed Resolution Plan in CIRP Process Renders Appellants' Demands Invalid.</h1> <h3>THE COMMISSIONER CENTRAL EXCISE AND SERVICE TAX, BHAVNAGAR Versus RELIANCE NAVAL AND ENGINEERING LTD. And M/s BHARTI AIRTEL LTD. Versus THE COMMISSIONER OF CENTRAL EXCISE, PUNE III</h3> The SC disposed of the Civil Appeals by applying the precedent set in Ghanshyam Mishra and Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Co. Ltd. The ... Applicability of ratio of the judgment in GHANASHYAM MISHRA AND SONS PRIVATE LIMITED THROUGH THE AUTHORIZED SIGNATORY VERSUS EDELWEISS ASSET RECONSTRUCTION COMPANY LIMITED THROUGH THE DIRECTOR & ORS. [2021 (4) TMI 613 - SUPREME COURT] - respondent/company has been subjected to CIRP proceedings under the provisions of the Insolvency and Bankruptcy Code, 2016 - NCLT, Ahmedabad admitted the respondent to CIRP proceedings - resolution plan was approved and an amount of Rs.157 Lakhs was provided towards making the payments to operational creditors including Government dues, which have been claimed/lodged - no claims of the appellant(s)/Department made in respect of the Assessment Years under consideration in these appeals. HELD THAT:- These Civil Appeals stand disposed of in terms of the aforesaid judgment of this Court. The question of law on the merits of the case is, however, left open. Issues:1. Application of Section 31 of the Insolvency and Bankruptcy Code, 2016 (IBC) to the present case.2. Disposal of appeals based on the judgment in Ghanshyam Mishra and Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Ltd.3. Adjudication of claims in Corporate Insolvency Resolution Process (CIRP) proceedings.4. Applicability of the judgment to the instant case.5. Recording of submissions and disposal of Civil Appeals.Analysis:1. The judgment by the Supreme Court pertains to the application of Section 31 of the Insolvency and Bankruptcy Code, 2016 (IBC) in the present case. The respondent-company had undergone Corporate Insolvency Resolution Process (CIRP) proceedings and was subsequently revived. The appellants failed to make their claim in time as per Section 31 of the IBC. The Court referred to the judgment in Ghanshyam Mishra and Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Ltd. (2021) 9 SCC 657, which concluded that the demands made by the appellants would no longer be considered valid. Consequently, the appeals were disposed of based on this analysis.2. The disposal of the appeals was primarily grounded in the judgment in Ghanshyam Mishra and Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Ltd. The respondent-company had participated in CIRP proceedings under the IBC, with the resolution plan being approved and funds allocated for payments to operational creditors, including Government dues. As no claims were made by the appellants or the Department for the relevant Assessment Years, the Court applied the ratio of the aforementioned judgment to the present case. The disposal was in alignment with the principles established in the cited case law.3. The legal representatives of the parties presented their arguments regarding the claims lodged during the CIRP proceedings. The respondent's counsel highlighted the CIRP process undergone by the company and the absence of claims by the appellants in the relevant Assessment Years. The learned ASG representing the appellant(s) acknowledged the lack of claims from their side, thereby accepting the applicability of the judgment discussed in the case.4. The judgment's applicability to the instant case was a crucial aspect considered by the Court. Given the circumstances of the CIRP proceedings, the absence of claims by the appellants, and the principles enunciated in the Ghanshyam Mishra case, the Court found it appropriate to dispose of the Civil Appeals based on the precedent set by the earlier judgment. This alignment ensured consistency and adherence to established legal principles.5. The Court recorded the submissions made by the counsels representing the parties and proceeded to dispose of the Civil Appeals in accordance with the judgment discussed. While the appeals were disposed of based on the specific issue related to the IBC and CIRP proceedings, the Court explicitly mentioned that the question of law on the merits of the case remained open for future consideration, indicating a limited scope of the current judgment.This detailed analysis encapsulates the key legal aspects and reasoning behind the Supreme Court's judgment in the referenced case.
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