TaxTMI 
TaxTMI 
2022 (6) TMI 212
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.... Appellant : Mr. Mahesh Agarwal, Mr. Shivam Shukla, Mr. Shadab Jan, Mr. Sandeep Khairwal, Mr. Yash Tambe & Ms. Prerna Wagh, Advocates. For the Respondent : Mr. Udayasankar Samudrala & Mr. Rajdeep Samudrala, Advocates. For the Appellant : Mr. Mahesh Agarwal, Mr. Shivam Shukla, Mr. Shadab Jan, Mr. Sandeep Khairwal, Mr. Yash Tambe & Ms. Prerna Wagh, Advocates. For the Respondent : Mr. Udayasankar Samudrala & Mr. Rajdeep Samudrala, Advocates. JUDGMENT Ashok Bhushan, J. 1. These Appeals by the same Appellant have been filed against the orders of the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, by which the Appellant has been directed to deposit the unpaid TDS amount within the period of 15 days. Company Appeal (AT) (Ins.) No. 506 of 2022 is against the order dated 25.03.2022 passed in C.P.(IB) No. 566(MB) 2021 filed by the Respondent- Operational Creditor. Company Appeal (AT) (Ins.) No. 873 of 2021 is filed against the order dated 24.09.2021 passed in C.P.(IB) No. 1321(MB)/2020 by the Respondent- Operational Creditor under Section 9. Company Appeal (AT) (Ins.) No. 874 of 2021 is against the order dated 24.09.2021 passed in C.P.(IB) No. 1373(MB)....
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....judicating Authority vide its judgment dated 25.08.2021 in Civil Appeal No.4993 of 2021- "Kamal K. Singh vs. Dinesh Gupta & Anr." and allowed the withdrawal Application. After Settlement Agreement dated 23.06.2021, the settlement amount towards the Respondents were paid by the Corporate Debtor and when C.P.(IB) No.566(MB)/2021 was taken for consideration where Counsel for the Operational Creditors submitted that the Corporate Debtor has paid the dues of employees. However, the Counsel for the Operational Creditors further stated that the TDS deducted by the Corporate Debtor has not been deposited with the Income Tax Authority. The Adjudicating Authority passed an order on 25.03.2022 granted time to the Operational Creditor to file details with respect to the amount settled with the employees Provident Fund amount and amount of TDS and the Corporate Debtor, in the meantime, directed to deposit unpaid TDS amount within a period of 15 days. Aggrieved against the said order, this Appeal has been filed. 3. We may further notice the facts in one Appeal being Company Appeal (AT) (Ins.) No. 873 of 2021 whereby impugned order dated 24.09.2021, the Adjudicating Authority allowed the Appli....
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....ings pending before the Commissioner of Income Tax and the Orders passed therein." 8. In the other Appeal, for example Company Appeal (AT) (Ins.) No. 873 of 2021, similar Settlement Agreement was entered where the Corporate Debtor undertook to deposit the TDS amounts before 10.07.2021. In paragraph 7 of the Settlement Agreement dated 10.06.2021, following has been stated:- "7. It is agreed between the Parties that the Settlement Amount set out herein in Schedule I to the present Settlement Agreement does not include the claim of the Operational Creditors towards the unpaid Tax Deducted at Source and Provident Fund contributions of employees and employers (together referred to as "the Statutory Dues"), if applicable. Mr. Kamal Singh Krishan will ensure that the Corporate Debtors will make the payment of the Statutory Dues (if any) directly to the statutory authorities on or before 10th June 2021, subject to the proceedings pending before the Commissioner of Income Tax and the Orders passed therein. In case of any penalties levied upon the Operational Creditors by the Income Tax Department, the same shall be paid to the specific employees upon furnishing the original dema....
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....ndertaken under the Settlement Agreement to deposit the TDS amount directly to the concerned authorities cannot be heard that it should not be asked to deposit the said amount. Under the Income Tax Act, 1961, the Income Tax Authority has ample jurisdiction to take steps for recovery of its dues including the amount of TDS which although deducted has not been deposited by the Appellant. We only observe that the Adjudicating Authority after withdrawal of Section 9 Application ought not take any further steps regarding deposit of TDS amount by the Appellant and further steps for recovery and appropriate action against the Corporate Debtor regarding deposit of the TDS amount is to be taken by the Income Tax Authorities. 13. In C.P.(IB) No. 1321(MB)/2020 (Company Appeal (AT) (Ins.) No. 873 of 2021), C.P.(IB) No. 1373(MB) 2020 (Company Appeal (AT) (Ins.) No. 874 of 2021) and C.P.(IB) No. 1371(MB) 2020 (Company Appeal (AT) (Ins.) No. 875 of 2021), the Adjudicating Authority has already allowed withdrawal of Section 9 Applications but in C.P.(IB) No. 566(MB) 2021 (Company Appeal (AT) (Ins.) No. 506 of 2022), Section 9 Application is still pending which was directed to be listed on 14.06....