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N. V. RAMANA, J. K. MAHESHWARI, HIMA KOHLI
Sundaresh Bhatt, Liquidator Of Abg Shipyard – Appellant
Versus
Central Board Of Indirect Taxes And Customs – Respondent
JUDGMENT :
The present Civil Appeal under Section 62(1) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) arises out of the impugned judgment dated 22.11.2021 passed by the National Company Law Appellate Tribunal, New Delhi (“NCLAT”) in Company Appeal (AT) (Insolvency) No. 236 of 2021. Vide the impugned judgment, the NCLAT has allowed the appeal filed by the respondent against the order of the National Company Law Tribunal, Ahmedabad (“NCLT”)/Adjudicating Authority whereby the Adjudicating Authority directed the release of certain goods lying in the Customs Bonded Warehouses without payment of custom duty and other levies.
2. A conspectus of the facts necessary for the disposal of the present appeal is as follows: ABG Shipyard (“Corporate Debtor”) was in the business of shipbuilding prior to the initiation of corporate insolvency proceedings against it. As a part of its business enterprise, it used to regularly import various materials for the purpose of constructing ships which were to be exported on completion. Some of these goods were stored by the Corporate Debtor in Custom
The main legal principle established in the judgment is that the Insolvency and Bankruptcy Code (IBC) prevails over the Customs Act, limiting the authority of the respondent to only assess and determ....
The IBC's moratorium provisions shield and protect the corporate debtor from pecuniary attacks, and the authorities cannot enforce recovery or levy interest on tax due during the moratorium.
The moratorium under Section 33(5) of the IBC prohibits legal proceedings against a corporate debtor during liquidation, and any notices issued by the State for breach of the Tenancy Act are invalid ....
Once a resolution plan is approved under the Insolvency and Bankruptcy Code, claims not presented during insolvency proceedings are extinguished, prohibiting further recovery actions by revenue autho....
NCLT has jurisdiction under IBC Section 60(5)(c) to defreeze demat accounts holding corporate debtor's undisputed shares, frozen for crystallized listing fee dues, as issue relates to insolvency proc....
Only claims existing on liquidation commencement date, filed within stipulated time, are admissible; post-liquidation assessments during moratorium invalid without approval, rejecting delayed additio....
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