# In the matter of Pradeep Kumar Kabra vs. Assistant Commissioner Interlocutory Application No.1357 of 2023 in Company Appeal (AT) (Insolvency) No. 409 of 2023

> NCLAT judgment dated 2023-07-04. Citation: TCN-2023-NCLAT-00411. This case involves an appeal filed by the Resolution Professional (RP) of Cengres Tiles…

- **Court:** NCLAT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLAT-00411
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pradeep-kumar-kabra-vs-assistant-commissioner-interlocutory-application-no1357-o-30f2845e

## Summary

### Background

This case involves an appeal filed by the Resolution Professional (RP) of Cengres Tiles Limited, the Corporate Debtor, against an order dated 07.02.2023 passed by the National Company Law Tribunal (NCLT), Ahmedabad. The NCLT had rejected IA/765(AHM)2022 filed by the RP, which sought a direction to the Assistant Commissioner of CGST & Central Excise to release the attachment of tiles belonging to the Corporate Debtor. The attachment was made by the Respondent to recover central excise dues. The RP argued that after the commencement of the Corporate Insolvency Resolution Process (CIRP), no action to recover dues against the Corporate Debtor could be undertaken, citing Section 14 of the Insolvency and Bankruptcy Code (IBC).

## Facts

M/s Cengres Tiles Limited, the Corporate Debtor, was engaged in manufacturing non-metallic mineral products, including tiles. On 02.02.2018, the Assistant Commissioner of CGST & Central Excise attached 81,620 boxes of vitrified tiles to recover central excise dues amounting to Rs.5,10,12,500/-. A 'Panchnama' was drawn on the same date, placing the goods under 'supurdagi'. Axis Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), leading to the initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor on 04.03.2021. The Appellant was appointed as the RP on 23.05.2022. The Respondent submitted a claim to the Interim Resolution Professional (IRP) for Rs.39,62,94,872/-. The RP requested the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the jurisdiction to direct the release of assets attached by …

**Ratio:** The ratio is based on the interpretation of Section 60(5) of the IBC, which defines the

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**Reasoning:** The court reasoned that the Adjudicating Authority erred in holding that it lacked

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**Interpretation:** The interpretation of Section 60(5) of the IBC, as clarified by the Supreme

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**Application:** In this specific case, the court applied the ratio by holding that the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Pradeep Kumar…
- **Respondents:** Cengres Tiles…; Assistant…
- **Advocates:** Ravi Ragh…; Anushree…; +1 more

## Timeline

- **2018-02-02 — Attachment o…**: The Assistant Commissioner of CGST & Central Excise attached 81,620 boxes of vitrified…
- **2021-03-04 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Cengres Tiles…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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