# In the matter of Bhushan Power And Steel Ltd Through Its Monitoring Professional Mr Mahender Kumar Khandelwal Vs. Union of India Through Its Secretary Ministry of Finance & Ors. W.P.(C) 7248/2020 and CM APPL. 24458/2020

> HC judgment dated 2022-07-21. Citation: TCN-2022-HC-00032. This writ petition challenges an Order-in-Original dated 2020-07-27 issued by the Additional…

- **Court:** HC
- **Order date:** 21 Jul 2022
- **Citation:** TCN-2022-HC-00032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/bhushan-power-and-steel-ltd-through-its-monitoring-professional-mr-mahender-kuma-03c8c9a7

## Summary

### Background

This writ petition challenges an Order-in-Original dated 2020-07-27 issued by the Additional Director General (Adjudication), Directorate of Revenue Intelligence (DRI). The petitioner is aggrieved because a demand was imposed despite the approval of a resolution plan by the National Company Law Tribunal (NCLT), Delhi Bench. The demand, as adjudicated by the impugned order, amounts to Rs. 23.53 crores, in addition to penalty and interest. The petitioner contends that the demand is extinguished due to the approved resolution plan, citing the Insolvency and Bankruptcy Code, 2016. The respondent argues that an alternate remedy (appeal) is available, making the writ petition inappropriate.

## Facts

A writ petition was filed against an Order-in-Original dated 2020-07-27 issued by the Additional Director General (Adjudication), Directorate of Revenue Intelligence (DRI), imposing a demand of Rs. 23.53 crores plus penalty and interest. The petitioner argued that this demand was extinguished because a resolution plan had been approved by the National Company Law Tribunal (NCLT), Delhi Bench. The resolution plan concerning JSW Steel Ltd. was approved by the NCLT under Section 31 of the Code on 2019-09-05, and affirmed by the NCLAT on 2020-02-17. The Corporate Insolvency Resolution Process (CIRP) was triggered on 2017-07-26 by Punjab National Bank under Section 7 of the Code. A public notice was issued on 2017-07-28, and the demand was subsisting on that date. The

…

## Issues and analysis

### Issue 1: Whether the demand raised by the respondents/revenue stands extinguished once a resolution plan is …

**Ratio:** Once a resolution plan is duly approved by the Adjudicating Authority under sub section

…

**Reasoning:** The court relied on the Supreme Court's decision in Ghanshyam Mishra, which held that all

…

**Interpretation:** The Supreme Court's interpretation of Section 31 of the Insolvency and

…

**Application:** In this case, the demand raised by the respondents/revenue was not part of the

…

## Parties

- **Judges:** RAJIV SHA…; Tara Vitast…
- **Appellants:** BHUSHAN POWER AND…
- **Respondents:** JSW Steel…; Union of…
- **Other parties:** Kohi…
- **Advocates:** Rajat…; Taha Y…; +4 more

## Timeline

- **2016-06-01 — Show-Cause…**: Respondent no.3 issued…
- **2017-07-26 — CIRP Trig…**: The Corporate Insolvency Resolution Process (CIRP) was triggered on an application made…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31 — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/high-courts-new-delhi/bhushan-power-and-steel-ltd-through-its-monitoring-professional-mr-mahender-kuma-03c8c9a7