# In the matter of Mr Ajay Rana, Director Of Erstwhile Company M/s Sarika Industries Pvt Ltd  Vs Sanjay Kumar Goel

> NCLAT judgment dated 2023-08-07. Citation: TCN-2023-NCLAT-00304. The case involves an appeal before the National Company Law Appellate Tribunal (NCLAT)…

- **Court:** NCLAT
- **Order date:** 7 Aug 2023
- **Citation:** TCN-2023-NCLAT-00304
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-ajay-rana-director-of-erstwhile-company-ms-sarika-industries-pvt-ltd-vs-sanja-7879d1c9

## Summary

### Background

The case involves an appeal before the National Company Law Appellate Tribunal (NCLAT) concerning a dispute over input tax credit. The appellant, Mr. Ajay Rana, Director of Sarika Industries Pvt. Ltd., is contesting proceedings initiated against them, arguing that they are required to reverse the entire input tax credit due to actions by the GST Department. The appellant was directed to implead the GST Department as Respondent No. 3.

## Facts

Mr. Ajay Rana, Director of Sarika Industries Pvt. Ltd., filed an appeal against Sanjay Kumar Goel & Anr. The appellant claimed that the principal amount for which the application was filed was Rs. 79,82,857/-, which they had not disputed in reply to a demand notice. However, the GST Department allegedly instructed the appellant not to make the payment to the Operational Creditor. Consequently, proceedings were initiated against the appellant, requiring them to reverse the entire input tax credit. The respondent relied on an order from the Delhi High Court in W.P.(C) 6208/2019. The NCLAT directed the appellant to deposit Rs. 79,82,857/- as a fixed deposit with the Registrar, NCLAT.

## Issues and analysis

### Issue 1: Whether the Appellant should be directed to deposit …

**Ratio:** The ratio is based on the court's inherent power to grant interim relief to protect the

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**Reasoning:** The court reasoned that directing the appellant to deposit the amount would serve the

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**Interpretation:** This involves interpreting the scope of the appellate tribunal's power to grant

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Ajay…
- **Respondents:** Sarika Industries…; Sanjay Kuma…

## Timeline

- **2023-07-25 — Impugned Ord…**: Date of the order that was…
- **2023-08-07 — Order to Implead GST…**: The court permitted the appellant to implead…

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