Subha Pal vs Income Tax Officer ITO-14 (3) Mumbai

The matter is taken up through Virtual Hearing (VC).  Counsel Mr. Aniruth Purusothaman appeared for the Applicant in IA-389/2021.

IA-389-2021 - This IA is filed by the Liquidator under section 35(1)(b), 32A read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016 and Rule 11 of the National Company Law Tribunal Rules, 2016 praying for removal of attachment against Income Tax Department. The above IA was listed on various occasions and the Liquidator was directed to issue Notice to the Income Tax Department. However, none appeared on behalf of the Respondent i.e. Income Tax Department. Today the matter was again taken up on board and the Counsel appearing for the Liquidator informed this Bench that during the CIRP of Corporate Debtor it was noticed that the Corporate debtor had been maintaining a current account with Syndicate Bank (now merged with Canara Bank). He has also invited our attention to Section 32A Sub-Section (2) of the I&B Code, 2016 wherein ample power is given to the Adjudicating Authority which reads as under :-

" (2) No action shall be taken against the property of the corporate debtor in relation to an offence committed prior to the commencement of the corporate insolvency resolution process of the corporate debtor, where such property is covered under a resolution plan approved by the Adjudicating Authority under section 31, which results in the change in control of the corporate debtor to a person, or sale of liquidation assets under the provisions of Chapter III of Part II of this Code to a person, who was not -

(i) a promoter or in the management or control of the corporate debtor or a related party of such a person; or

(ii) a person with regard to whom the relevant investigation authority has, on the basis of material in its possession, reason to believe that he had abetted or conspired for the commission of the offence, and has submitted or filed a report or a complaint to the relevant statutory authority or Court.

It is further clarified in the sub-section (2) that an action against the property of the corporate debtor in relation to an offence shall include the attachment, seizure, retention or confiscation of such property under such law as may be applicable to the corporate debtor.

Having considered the submissions of the Counsel appearing for the Liquidator and on perusal of the papers placed before this Tribunal, this Bench directs the Income Tax Officer ITO-14, for removal of attachment from the bank account of corporate debtor Logica Technosy Private Limited, Account No. 50001010013207, Syndicate Bank, Branch Address : 26-A, Sir Phirozshah Mehta Road, Brihan Mumbai, Maharashtra forthwith.

Copy of this Order may be forwarded by the Liquidator to the Income Tax Department for its compliance IA-389/2021 is disposed of. List the matter on 18.10.2021 for reporting compliance by the Liquidator.