2021 (1) TMI 897

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....he Resolution Professional seeking the following reliefs: - "a. Declare the letter dated 03/12/2019 bearing reference No. 2018/Tax/Recovery/Kavi-151 issued by Collector of Usmanabad and the withdrawal of Rs. 76,75,000/- done by Respondent as illegal / non-est in  law; b. Direct the Respondent (GST Department, Nashik) to forthwith refund the amount of Rs. 76,75000/-  along with an interest @18% p.a. to the Bank Account of the Corporate Debtor." 3.  The Counsel for the Applicant submits that:- a.  The Corporate Debtor was put under Corporate Insolvency Resolution Process (CIRP) by an order of this Bench dated 06/11/2019. b.  The Respondent is the goods and services tax department....

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.... intervention of the Collector of Usmanabad is hit by the provisions of section 14 of the Code. The Respondent was requested to reverse the transaction by transferring the said amount back to the Corporate Debtor's account and also advised to file the claim before the Applicant.  5.  The letter dated 03/12/2019 issued by the Collector of Usmanabad reveals that the said amount was debited to the Account of the Corporate Debtor and adjusted towards the tax liability of a completely different entity namely Sheelatul Sugar Tech Private Limited. 6.  Hence this Application. 7.  The Respondent in its reply contended as below: a.  M/s Sheelatul Sugar Tech Private Limited is a defaulter for payment of GST d....

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.... shall be treated on equal footing and to support this argument the respondent relied on the Judgment of Hon'ble NCLAT in the case of Binani Industries Limited & Ors....V/s.... Bank of Baroda and Ors. (MANU/NL/0284/2018) and the Judgement of Hon'ble Supreme Court in the case of Swiss Ribbons Private Limited and others....V/s... Union of India and Others (MANU/SC/0079/2019). 8.  On hearing both the sides, this bench is of the view that the liability towards Sales Tax due is not towards the Corporate Debtor but it is the due payable by M/s Sheelaatul Sugar Tech Private Limited.  Even assuming that the Corporate Debtor is liable to pay that amount, the collection of due by the Respondent during CIRP is prohibited by moratorium und....

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....rium came into its effect immediately i.e. on 15.12.2017, the date of receipt of order has no relevancy with the same." b.  State Bank of India vs. Mr. V. Ramakrishnan, Company Appeal (AT) (Insolvency) No. 213/2017 (MANU/NL/0025/2018) wherein it was held that; "On bare perusal of the aforesaid provisions, it is clear that not only institution of suits or continuation of pending suits or proceedings against the Corporate Debtor are prohibited from proceedings, in terms of clause (b) of subsection 1 of Section 14 of the I&B Code, transfer, encumbrance, alienation or disposal of any of its assets of the Corporate Debtor and/or any legal right or beneficial interest therein are prohibited. Clauses (c) and (d) of subsectio....