# In the matter of Kolkata Municipal Corporation and another Vs. Union of India and others WPA No.977 of 2020

> HC judgment dated 2021-01-29. Citation: TCN-2021-HC-00034. The Kolkata Municipal Corporation (KMC) filed a writ petition challenging an order passed by the…

- **Court:** HC
- **Order date:** 29 Jan 2021
- **Citation:** TCN-2021-HC-00034
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/kolkata-municipal-corporation-and-another-vs-union-of-india-and-others-wpa-no977-e83021d1

## Summary

### Background

The Kolkata Municipal Corporation (KMC) filed a writ petition challenging an order passed by the National Company Law Tribunal (NCLT) regarding the handing over of physical possession of office premises. The KMC had taken possession of the property for recovery of municipal tax dues from an assessee. Subsequently, the debt of the assessee came under the Corporate Insolvency Resolution Process (CIRP), prompting the Resolution Professional to approach the NCLT for the property's possession. This action led to the writ petition by KMC, arguing that as a statutory authority, its actions should not be interdicted by the NCLT under the Insolvency and Bankruptcy Code (IBC).

## Facts

The Kolkata Municipal Corporation (KMC) initiated proceedings under Sections 217-220 of the Kolkata Municipal Corporation Act, 1980, to recover municipal tax dues from an assessee by distraining a property. Subsequently, the assessee's debt became subject to the Corporate Insolvency Resolution Process (CIRP). The Resolution Professional, representing the owner of the asset, approached the NCLT seeking possession of the property from the KMC. The NCLT passed an order on December 17, 2019, directing the KMC to hand over possession. The KMC challenged this order via a writ petition, arguing that as a statutory authority, its actions are independent and cannot be overridden by the NCLT under the IBC. The KMC had already attached the asset and was in possession, with no

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## Issues and analysis

### Issue 1: Whether the writ jurisdiction of the High Court under Article 226 of the Constitution of India can …

**Ratio:** The Supreme Court in Embassy Property (supra) held that the distinction between lack of

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**Reasoning:** The Court reasoned that the challenge in the writ petition was based on the absence of

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**Interpretation:** Article 226 can be invoked if the order or proceedings are wholly without

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**Application:** Since the challenge was based on the NCLT's lack of jurisdiction, the writ

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## Parties

- **Judges:** SABYASACHI…
- **Appellants:** Kolkata Municipal…
- **Respondents:** Union of…

## Timeline

- **2019-12-17 — NCLT Ord…**: NCLT passed an order directing the KMC to hand over physical possession of the office…
- **2021-01-18 — Hearing Con…**: Hearing concluded on the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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