Commissioner of Income Tax, Central-III, Delhi v. Income Tax Settlement Commission & Anr.

Delhi High Court · 12 Dec 2023 · 2023:DHC:9422-DB
Rajiv Shakdher; Girish Kathpalia
W.P.(C) 708/2014
2023:DHC:9422-DB
administrative petition_dismissed

AI Summary

The Delhi High Court dismissed the writ petition challenging claim rejection during insolvency proceedings, holding that the moratorium under Section 14 of the IBC prohibits such interference until the NCLT proceedings conclude.

Full Text
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W.P.(C) 708/2014
HIGH COURT OF DELHI
Decision delivered on: 12.12.2023
W.P.(C) 708/2014
COMMISSIONER OF INCOME TAX, CENTRAL-III, DELHI..... Petitioner
Through: Mr Gaurav Gupta, Sr. Standing Counsel, Mr Shivendra Singh and Mr
Puneet Singhal, Standing Counsels.
VERSUS
INCOME TAX SETTLEMENT COMMISSION & ANR. ..... Respondents
Through: Ms Anuska Sarkar, Advocate for Mr Kanisk Khetan, Advocate
CORAM:
HON'BLE MR. JUSTICE RAJIV SHAKDHER
HON'BLE MR. JUSTICE GIRISH KATHPALIA [Physical Hearing/Hybrid Hearing (as per request)]
RAJIV SHAKDHER, J. (ORAL):
JUDGMENT

1. Mr Gaurav Gupta, learned senior standing counsel, who appears on behalf of the petitioner/revenue, says that the claim lodged with the Resolution Professional (RP) was rejected and, therefore, the petitioner/revenue is in the process of taking recourse to an appropriate remedy.

2. The fact remains that respondent no.2 is undergoing the Corporate Insolvency Resolution Process before the National Company Law Tribunal, Delhi Bench [in short, “NCLT”]. W.P.(C) 708/2014

3. We were also informed on the previous date i.e., 11.09.2023, by Mr Kanisk Khetan, learned counsel, who appears on behalf of respondent no. 2, that the petitioner/revenue did not respond to the public announcement made by the Interim Resolution Professional (IRP).

4. Whichever way we look at it, at present, what cannot be denied is the fact that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, is operative. Therefore, according to us, no purpose will be served in progressing the writ petition any further.

5. The writ petition is accordingly closed, with liberty to the petitioner/revenue to approach the court, if deemed appropriate, albeit as per the law, for reviving the petition, depending on the outcome of the proceedings pending before the NCLT.

RAJIV SHAKDHER, J. GIRISH KATHPALIA, J. DECEMBER 12, 2023