TaxTMI 
TaxTMI 
2023 (12) TMI 577
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....shall stand disposed of. W.P.(C) 11565/2023 & CM APPL. 45045/2023 (Stay) 1. The petitioner impugns the order dated 13 June 2023 passed by the Commissioner of Customs (Adjudication) and also the consequential duty demand of Rs. 31,91,86,662/- which has come to be raised. The impugned order and the consequential duty demand are assailed principally on the basis of Section 31 of the Insolvency and Bankruptcy Code, 2016 ["IBC"]. For the purposes of evaluating the challenge as raised, we deem it apposite to notice the following essential facts. 2. The petitioner is stated to have been admitted to the Corporate Insolvency Resolution Process ["CIRP"] on 08 January 2018 upon an application being filed under Section 10 of the IBC. It is fur....
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....05 September 2018 which came to be partially admitted in the Resolution Plan and as a consequence of which Rs.19,16,593/- came to be disbursed to that authority on 16 May 2020. 6. Mr. Krishnan has also invited our attention to Civil Appeal No.3543/2020 instituted by the Commissioner of Customs (Preventive) West Bengal, which had sought permission to auction certain goods imported by the petitioner and warehoused at ICD, Durgapur. The Supreme Court vide its order dated 19 September 2022 dismissed the Civil Appeal. It is stated that in compliance with the order passed by the Supreme Court, the goods were released vide order dated 13 April 2023 issued by the Deputy Commissioner of Customs. 7. Notwithstanding the above, the petitioner is ....
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.... or not, due or contingent, asserted or unasserted, crystallized or uncrystallised, known or unknown, secured or unsecured, disputed or undisputed, present or future, whether or not set out in the Provisional Balance Sheet, the balance sheets of the Corporate Debtor or the profit and loss account statements of the Corporate Debtor or the List of Creditors, in relation to any period prior to the Effective Date or arising on account of the acquisition of control by the Resolution Applicant over the Company pursuant to this Resolution Plan, will be written off in full and will be deemed to be permanently extinguished by virtue of the order of the Adjudicating Authority approving this Resolution Plan and the Corporate Debtor or the Resolution A....
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....ers involved in the resolution plan: [Provided that the Adjudicating Authority shall, before passing an order for approval of resolution plan under this sub-section, satisfy that the resolution plan has provisions for its effective implementation.] (2) Where the Adjudicating Authority is satisfied that the resolution plan does not confirm to the requirements referred to in sub-section (1), it may, by an order, reject the resolution plan. (3) After the order of approval under sub-section (1),- (a) the moratorium order passed by the Adjudicating Authority under Section 14 shall cease to have effect; and (b) the resolution professional shall forward all records relating to the conduct of the corpora....
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....Section 529-A of the Companies Act, 1956; Recovery of Debts and Bankruptcy Act, 1993; Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the IBC, 2016. Accordingly, such an exception created under the Customs Act is duly acknowledged under Section 238 of the IBC as well." 12. Insofar as the extinguishment of claims is concerned, the said issue too is no longer res integra and stands authoritatively answered by the Supreme Court in Essar Steel India Ltd. Committee of Creditors vs. Satish Kumar Gupta [(2020) 8 SCC 531] and Ghanashyam Mishra & Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Pvt. Ltd. [(2021) 9 SCC 657]. 13. We deem it apposite to extract the following passag....
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....omplete Code in itself. Upon admission of petition under Section 7 there are various important duties and functions entrusted to RP and CoC. RP is required to issue a publication inviting claims from all the stakeholders. He is required to collate the said information and submit necessary details in the information memorandum. The resolution applicants submit their plans on the basis of the details provided in the information memorandum. The resolution plans undergo deep scrutiny by RP as well as CoC. In the negotiations that may be held between CoC and the resolution applicant, various modifications may be made so as to ensure that while paying part of the dues of financial creditors as well as operational creditors and other stakeholders,....