# In the matter of Guruashish Construction Pvt. Ltd. IA No. 870/MB/2020 in CP (IB) No. 1061/MB/2017

> NCLT judgment dated 2020-10-01. Citation: TCN-2020-NCLT-00476. The case involves an application filed by the Resolution Professional (RP) seeking a direction…

- **Court:** NCLT
- **Order date:** 1 Oct 2020
- **Citation:** TCN-2020-NCLT-00476
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/guruashish-construction-pvt-ltd-ia-no-870mb2020-in-cp-ib-no-1061mb2017-2edb337a

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking a direction against the Income Tax Department (Respondent) to lift the attachment order made under Section 226 of the Income Tax Act, 1961, on the bank accounts of Guruashish Construction Pvt. Ltd. (Corporate Debtor). The Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor was initiated on 24.07.2017, and a liquidation order was passed on 04.09.2020. The Income Tax Department filed claims as an Operational Creditor for Rs.549.44 Crores, which was admitted by the RP, along with another claim of Rs.20.48 Crores towards TDS not deposited by the Corporate Debtor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) against Guruashish Construction Pvt. Ltd. was initiated on 24.07.2017. Subsequently, a liquidation order was passed on 04.09.2020. The Income Tax Department, acting as an Operational Creditor, filed claims amounting to Rs.549.44 Crores, which were admitted by the Resolution Professional (RP). Additionally, the Income Tax Department filed another claim for Rs.20.48 Crores related to Tax Deducted at Source (TDS) that was not deposited by the Corporate Debtor, and this claim was also admitted by the RP. Prior to the CIRP order, the Income Tax Department had issued attachment orders on the Corporate Debtor's bank accounts under Section 226 of the Income Tax Act, 1961. The RP filed an application seeking the lifting of

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## Issues and analysis

### Issue 1: Whether the attachment orders issued by the Income Tax Department on the bank accounts of the …

**Ratio:** The legal principle applied is that the Insolvency and Bankruptcy Code (IBC) aims to

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**Reasoning:** The court reasoned that since the Income Tax Department's claims as an Operational

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**Interpretation:** The interpretation is that the IBC's provisions are designed to take precedence

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**Application:** The ratio and reasoning are applied to the specific facts by directing the

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## Parties

- **Judges:** V. Nallasen…; МОНАМMED…
- **Appellants:** Union Bank of…
- **Respondents:** Guruashish…

## Timeline

- **2017-07-24 — CIRP Ord…**: Corporate Insolvency Resolution Process (CIRP)…
- **2020-03-22 — Tribunal…**: The work of the Tribunal has been closed due to Covid-19 pandemic as per letter dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 238 — Provisions of this Code to override other laws](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-238)

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