# In the matter of Deputy Commissioner (Works Contract) vs. National Company Law Tribunal & Ors.

> HC judgment dated 2024-01-30. Citation: TCN-2024-HC-00131. The Deputy Commissioner (Works Contract), Kerala State Goods and Services Tax Department, filed a…

- **Court:** HC
- **Order date:** 30 Jan 2024
- **Citation:** TCN-2024-HC-00131
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/deputy-commissioner-works-contract-vs-national-company-law-tribunal-ors-ac2257a7

## Summary

### Background

The Deputy Commissioner (Works Contract), Kerala State Goods and Services Tax Department, filed a writ petition challenging an order by the National Company Law Tribunal (NCLT), Kochi Bench. The NCLT order declared an assessment order as void ab initio, stating it violated the moratorium under Section 14(1)(a) of the Insolvency and Bankruptcy Code (IBC). The assessment order was related to the 2nd respondent, M/s Albanna Engineering (India) Private Limited, a Corporate Debtor undergoing Corporate Insolvency Resolution Process (CIRP).

## Facts

The Deputy Commissioner (Works Contract), Kerala State Goods and Services Tax Department, initiated an assessment against M/s Albanna Engineering (India) Private Limited, a Corporate Debtor, for the period 2015-16, determining a KVAT liability of Rs. 11,76,35,628.70. M/s Albanna Engineering was admitted into CIRP on 25.10.2019, and a moratorium was declared. Sanghvi Movers Ltd had filed IBA No.38/2019 under Section 9 of the IBC against Albanna Engineering. The moratorium was in effect until 02.12.2021, when a liquidation order was passed. The 2nd respondent filed an application before the NCLT, Kochi Bench, under Section 33(5) of the IBC, seeking permission to appeal the assessment order dated 25.02.2021. The NCLT, however, declared the assessment order void ab initio,

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## Issues and analysis

### Issue 1: Whether the NCLT is empowered to declare the assessment order as void ab initio under Section 33(5) …

**Ratio:** Section 14 of the IBC provides for a moratorium on the initiation of coercive legal

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**Reasoning:** The High Court reasoned that the NCLT exceeded its jurisdiction by declaring the

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**Interpretation:** The interpretation of Sections 14 and 33(5) of the IBC, along with relevant

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**Application:** In this case, the NCLT's declaration of the assessment order as void ab initio

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## Parties

- **Judges:** Dinesh Kuma…
- **Appellants:** Deputy Commissione…
- **Respondents:** M/s Albanna…
- **Other parties:** Kohi…

## Timeline

- **2019-10-25 — CIRP Commen…**: M/s Albanna Engineering (India) Private Limited was admitted into Corporate Insolvency…
- **2019-11-03 — CIRP Public Ann…**: CIRP effected public…

## 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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