NATIONAL COMPANY LAW TRIBUNAL MUMBAI,

SPECIAL BENCH COURT II

Item No.123

IA 1932/2025 IA 3147/2025 IA 3291/2025 IA 4110/2025 IA 4407/2025

in C.P.(IB)3585(MB)2018

CORAM:

SHRI ANIL RAJ CHELLAN SHRI ASHISH KALIA

HON’BLE MEMBER (TECHNICAL) HON’BLE MEMBER (JUDICIAL)

ORDER SHEET OF HEARING (HYBRID) DATED 13.11.2025

NAME OF THE PARTIES : ICICI Bank Limited Vs. Gitanjali Gems Ltd.

For Liquidator in

IA 1932/2025,

IA 3147/2025 : Adv. Viraj Parikh, Ms. Abha Patel i/b Fortis India Law

For Applicant in

IA 3291/2025,

IA 4407/2025 : Adv. Ashish Pyasi, Mr. Anshu Rathore, Mr. Yashwin

Daga i/b Aendri Legal

For Respondent/Liquidator

in IA 3291/2025,

IA 4407/2025 : Adv. Viraj Parikh, Ms. Abha Patel i/b Fortis India Law

U/s 7 of (IBC)

_________________________________________________________________________

ORDER

IA 1932/2025

This is an application filed by the applicant seeking following reliefs :- a) direct the Respondent to lift / vacate their attachment or deattach

all the assets of the Corporate Debtor to enable the Applicant

Liquidator to conclude the liquidation proceedings;

1. It is respectfully submitted that the present petition seeks directions to vacate the attachment order passed by the Income Tax Department in respect of the assets of the Corporate Debtor.

2. The ED had earlier issued multiple provisional attachment orders attaching the properties and assets of the Corporate Debtor under the Prevention of Money Laundering Act, 2002 (PMLA). These attachments were subsequently confirmed by the PMLA Court vide order dated 28.02.2018. The said attachment orders are now under challenge in an appeal pending before the Hon’ble High Court.

3. Thereafter, the CBI, vide its communication/order dated 10.09.2024, permitted the release of the assets of the Corporate Debtor to the Liquidator, with a direction to conduct valuation of such assets and deposit the sale proceeds before the competent Court.

4. In the present proceedings, the Income Tax Department, vide email dated

19.02.2025, has claimed an outstanding demand of Rs.50.10 Crores plus applicable interest under Section 220 of the Income Tax Act, 1961. Pursuant thereto, certain immovable properties of the Corporate Debtor have been attached under Section 48 of the Second Schedule to the Income Tax Act, 1961 read with the Income-tax (Certificate Proceedings) Rules, 1960. Notices have also been issued to the Liquidator calling for a response to the said tax demands.

5. The Income Tax authorities contend that the Income Tax Act is an independent statute, operating separately from other legislations, and that attachments made under tax laws confer statutory priority.

6. In this regard, reliance is placed on the judgment of the Hon’ble Supreme Court in State Tax Officer v. Rainbow Papers Ltd., wherein the Apex Court held that statutory dues under taxing statutes constitute secured debts, and attachments made under such statutes—particularly those effected prior to the commencement of insolvency or liquidation proceedings are entitled to statutory recognition and priority.

7. However, the attachments by the ED and CBI have already been addressed by subsequent orders and directions permitting release to the Liquidator subject to Court-monitored sale, and therefore, the continued attachment by the Income Tax Department requires adjudication in light of the overriding effect of the Insolvency and Bankruptcy Code (IBC), the earlier directions by CBI, and the pendency of challenges to the ED attachment orders before the Hon’ble High Court. page 9.10.11

8. The Applicant states that the Respondent has already filed its claim post the publication for inviting claims from the stakeholders having claim/ interest with the Corporate Debtor. It is further stated that the claim of the Respondent has been allowed and admitted in full by the Applicant and will thus be dealt with according to Section 53 of the Code. In view of the CIRP proceedings and consequent liquidation proceedings with respect to the Corporate Debtor, the attachment of asse