# In the matter of PR. Commssioner of Income Tax-6, New Delhi Vs. Monnet Ispat & Energy Ltd. ITA Nos. 533-552, 554 of 2017

> HC judgment dated 2017-09-04. Citation: TCN-2017-HC-00008. The case involves multiple Income Tax Appeals (ITA Nos. 533/2017, 534/2017, 535/2017, 536/2017,…

- **Court:** HC
- **Order date:** 4 Sept 2017
- **Citation:** TCN-2017-HC-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/pr-commssioner-of-income-tax-6-new-delhi-vs-monnet-ispat-energy-ltd-ita-nos-533-29475af2

## Summary

### Background

The case involves multiple Income Tax Appeals (ITA Nos. 533/2017, 534/2017, 535/2017, 536/2017, 537/2017, 538/2017, 539/2017, 540/2017, 541/2017, 542/2017, 543/2017, 544/2017, 545/2017, 546/2017, 5472017, 548/2017, 549/2017, 550/2017, 551/2017, 552/2017 & 554/2017) before the High Court of Delhi. The appeals concern the applicability of the Insolvency and Bankruptcy Code, 2016 ('Code') to pending proceedings against Monnet Ispat & Energy Ltd. The National Company Law Tribunal (NCLT) admitted a petition against Monnet Ispat & Energy Ltd. under Section 7 of the Code, filed by the State Bank of India.

## Facts

The PR. COMMISSIONER OF INCOME TAX-6 filed multiple Income Tax Appeals (ITA Nos. 533/2017, 534/2017, 535/2017, 536/2017, 537/2017, 538/2017, 539/2017, 540/2017, 541/2017, 542/2017, 543/2017, 544/2017, 545/2017, 546/2017, 5472017, 548/2017, 549/2017, 550/2017, 551/2017, 552/2017 & 554/2017) against MONNET ISPAT & ENERGY LTD. The National Company Law Tribunal (NCLT) admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed by the State Bank of India against Monnet Ispat & Energy Ltd. This triggered a moratorium, prohibiting the institution or continuation of suits or proceedings against the corporate debtor. The Income Tax Department sought to continue its appeals against the order of the Income Tax Appellate Tribunal ('ITAT')

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## Issues and analysis

### Issue 1: Whether the moratorium declared by the NCLT under the Insolvency and Bankruptcy Code, 2016, bars …

**Ratio:** Section 14 of the Insolvency and Bankruptcy Code, 2016, mandates a moratorium upon the

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**Reasoning:** The court reasoned that the NCLT's order under Section 7 of the Code triggered a

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**Interpretation:** The moratorium under Section 14 is interpreted broadly to encompass all legal

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**Application:** The court applied the ratio of Section 14 to the facts of the case, concluding

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## Parties

- **Judges:** S. Mural…; PRATHIBA M.…
- **Appellants:** PR. COMMISSIONER…
- **Respondents:** Monnet Ispat &…

## Timeline

- **2017-07-18 — NCLT Ord…**: The National Company Law Tribunal (NCLT) admitted the petition under Section 7 of the…
- **2017-08-31 — Supreme Court…**: Reference to the Supreme Court's decision in Civil Appeal No.8337-8338/2017 (M/s.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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