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2025 Supreme(Online)(NCLT) 5072
NATIONAL COMPANY LAW TRIBUNAL
Sunil Kumar Aggarwal, MEMBER (JUDICIAL), Radhakrishna Sreepada, MEMBER (TECHNICAL)
New Age Real Properties, LLP – Appellant
Versus
Bhuvana Infra Projects Pvt. Ltd. – Respondent
C.P.(IB) No.122/BB/2017
For the Liquidator: Ms. Raina Birla
For the Respondents: [No specific names mentioned]
Delayed TDS claims by statutory authorities can be condoned, and funds deducted as TDS are held in trust for the government, hence excluded from liquidation estate.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 36(4)(a)(i) - Unremitted TDS dues - Income Tax Department sought to reclaim TDS dues claimed to be held in trust, with the court ruling that such amounts must be excluded from the liquidation estate as they are public money. (Para 22)
(B) Delay in Claim Submission - The court condoned the delay in filing an updated claim by the Income Tax Department due to pandemic-related disruptions, highlighting the importance of statutory dues and fairness in the liquidation process. (Para 23)
Facts of the case:
The Income Tax Department claimed unremitted TDS dues from a Corporate Debtor undergoing liquidation, with requests for delays condoned based on circumstances surrounding the pandemic and failure of timely communication.
Findings of Court:
Prior TDS amounts deducted must be excluded from liquidation estate under IBC, treated as held in trust for the Government.
Issues: Whether updated TDS claims can be admitted post-liquidation commencement and if the delay in filing can be condoned.
Ratio Decidendi: The Tribunal noted that unremitted TDS constitutes property held in trust and thus is exempt from liquidation assets under IBC.
Result: Application partly allowed.
| Table of Content |
|---|
| 1. importance of timely submission of claims and conditions for condonation. (Para 2 , 3 , 5 , 22) |
| 2. tds dues deducted pre-liquidation held in trust for government. (Para 4 , 18) |
| 3. limitations on reclassifying creditor claims post admission. (Para 8 , 9 , 10 , 11 , 24) |
| 4. court's decisions on claim submissions and liquidation priorities. (Para 23 , 25) |
ORDER
I.A.No.428/2024 is disposed of vide separate Order with directions that the proposal of OEDPL shall be taken by the Stakeholders Committee instead of a decision being taken by this Authority. It is expected that the SCC will take an appropriate decision in the matter expeditiously, either by accepting one of the proposed options or by suggesting a better alternative for recovery of dues of the Corporate Debtor.
I.A.No.239/2025 is allowed vide separate Order.
C.P.(IB) No.122/BB/2017: List the case on 27.10.2025.
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RADHAKRISHNA SREEPADA SUNIL KUMAR AGGARWAL MEMBER (TECHNICAL) MEMBER (JUDICIAL) Shruthi
IN THE NATIONAL COMPANY LAW TRIBUNAL, BENGALURU BENCH
(Exercising powers of Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016 )
I.A. 239/BB/2025 in C.P. (IB) No.122/BB/2017 Under Section 60 (5) of the IBC, 2016 read with Rule 11 of the NCLT Rules, 2016 IN THE MATTER OF:
The Income Tax Officer (TDS), Ward-1(1), No. 59, Room No. 408, 4th Floor, HMT Bhavan, Ganga Nagar, Bellary Road, Bengaluru-560032 …Applicant VERSUS
1. M/s Bhuvana Infra Projects Private Limited (Under CIRP), 218, Koramangala, 19th Main, 6th Block, Bangalore-560095 …Respondent No.1
2. Vijay Pitamber Lulla, Resolution Professional, 201, Satchitanand Building, 12th Road, Khar West, Mumbai-400052 …Respondent No.2 In the matter of:
New Age Real Properties LLP ...Financial Creditor VERSUS Bhuvana Infra Projects Private Limited (In Liquidation) ...Corporate Debtor Order Delivered on: 04.09.2025 Coram: 1. Hon’ble Shri Sunil Kumar Aggarwal, Member (Judicial)
2. Hon’ble Shri Radhakrishna Sreepada, Member (Technical)
ORDER
1. The Application has been filed for the following reliefs:
(a) To give direction to the Liquidator (Respondent No. 2) to clear the claim of Rs. 59,43,080/- TDS dues as it is public money which has been held by the company (Respondent No. 1) and further direction may be given to make the payment in the Govt. Account immediately because it does not come under the purview of the IBC.
(b) Set aside the impugned order dated 11.11.2023 passed by the 2nd Respondent rejecting the claim of the Applicant in respect of the updated claim filed by the Applicant.
(c) Condone the delay of 1,423 days from 10.12.2019 to 07.11.2023 in submission of the updated claim by the Applicant before the 2nd respondent in the CIRP proceedings of the 1st Respondent;
(d) Consequently, direct the 2nd respondent to verify, admit and process the claim of the Applicant dated 07.11.2023 in accordance with the provisions of the Insolvency and Bankruptcy code,2016 and regulations framed there under in the CIRP proceedings of the 1st Respondent; and (e) Pass such other or further orders as this Hon'ble Tribunal may deem fit in the facts and circumstances of the case, in the interest of justice and equity.
2. Brief facts germane to the application are as follows:
a) M/s Bhuvana Infra Projects Private Limited (“Corporate Debtor”) is currently undergoing liquidation pursuant to the order dated 10.12.2019, with Mr. Vijay Pitamber Lulla appointed as Liquidator under the provisions of the IBC.
b) Prior to the commencement of liquidation, a TDS survey was conducted by the Income Tax Department on 17.11.2016, which indicated that certain amounts deducted as TDS by the Corporate Debtor during the period 01.01.2016 to 17.11.2016 had not been remitted to the Government, and additional statutory dues were identified based on TRACES demands and subsequent proceedings under the Income Tax Act, 1961 .
c) Orders under sections 201(1) and 201(1A) of the Income Tax Act, 1961 were passed for relevant financial years, resulting in agg
