2020 (10) TMI 388

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....d Power Infrastructure Limited against whom Corporate Insolvency Resolution Process (hereinafter referred to as CIRP) were initiated by Bank of India and admitted by this Bench vide order dated 24.08.2018. Mr. R.D. Choudhary appointed as the Interim Resolution Professional by this Bench was replaced by Sri Bhuvan Madan, by the CoC in its meeting held on 24th September, 2018 and confirmed by this Bench vide its order dated 23.10.2018. 2. It is stated that Deputy Director of Income Tax) (Investigation), 3rd Floor, Aaykar Bhawan, Race Course Road, Vadodara, Gujarat ('Investigating Officer') initiated a search and seizure action u/s 132 of the Income-Tax Act, 1961 on the Corporate Debtor on 10.04.2018 3. It is further stated that ....

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....orate Debtor vide order dated 26.10.2018 annexed with the IA as Annexure 4. 6. It is submitted by the Applicant that aforesaid provisional attachment order dated 26.10.2018 under section 281B of the IT Act, is issued when the Corporate Debtor is already under moratorium as per Section 14 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as Code). Since no order can be made against the Corporate Debtor, when the Corporate Debtor is under moratorium, the order dated 26.10.2018 issued by the Respondent No. 1 is void in the eyes of law. Moreover, the income tax demand against the Corporate Debtor has not crystallized and the assessment has not been finalized. 7. It is submitted by the Resolution Professional that object....

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....s Adjudicating Authority has also taken note of the apprehensions of the Applicant that in case the properties of the Corporate Debtor, are not released, it will impact the resolution process of the Corporate Debtor and the object of the Code will be defeated which emphasize to maximize the interest of all the stakeholders of the Corporate Debtor. 10. Judgment: 10.1 This Adjudicating Authority is of the considered view that once the CIRP is triggered and moratorium is imposed, all the assets and properties come under the possession of the Resolution Professional and the CoC. 10.2 The Insolvency and Bankruptcy Code, 2016 was enacted with a view to bring about a complete reorganization and insolvency resolution of Corporate Debtors i....