# In the matter of JVL Agro Industries Ltd. IA No. 131-2021 in
C.P. No. 223-ALD-2018

> NCLT judgment dated 2021-12-13. Citation: TCN-2021-NCLT-00188. The case involves an application filed by the liquidator of JVL Agro Industries Ltd. under…

- **Court:** NCLT
- **Order date:** 13 Dec 2021
- **Citation:** TCN-2021-NCLT-00188
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jvl-agro-industries-ltd-ia-no-131-2021-in-cp-no-223-ald-2018-2a32d3eb

## Summary

### Background

The case involves an application filed by the liquidator of JVL Agro Industries Ltd. under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016. The liquidator sought directions to defreeze the corporate debtor's current account maintained with Punjab National Bank (Respondent No. 2) and to release the funds therein. The Income Tax Department (Respondent No. 1) had issued a notice under Section 226(3) of the Income Tax Act, 1961, to Respondent No. 2 for payment of dues from the corporate debtor, leading to the freezing of the account. The CIRP was initiated on 2018-07-25, and liquidation was ordered on 2020-08-19 after no resolution plan was approved.

## Facts

The Corporate Debtor, JVL Agro Industries Ltd., underwent Corporate Insolvency Resolution Process (CIRP) initiated on 2018-07-25. Mr. Abhishek Gupta was initially appointed as the Interim Resolution Professional (IRP) and later replaced by Mr. Supriyo Kumar Chaudhuri as the Resolution Professional (RP) and subsequently as the liquidator. During the CIRP, the Income Tax Department issued a notice dated 2019-03-14 under Section 226(3) of the Income Tax Act, 1961, to Punjab National Bank (PNB), where the Corporate Debtor maintained a current account (Account No. 0977002100010632). The notice sought payment of Rs. 1,97,32,200/- from the Corporate Debtor's accounts, excluding current and cash credit accounts. PNB, however, put on hold the entire amount of Rs.

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## Issues and analysis

### Issue 1: Whether the bank account of the corporate debtor, frozen due to a notice issued by the Income Tax …

**Ratio:** The court held that the bank should defreeze the current account because the Income Tax

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**Reasoning:** The court reasoned that the Income Tax Department's notice did not explicitly instruct

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**Interpretation:** The interpretation hinges on the specific wording of the Income Tax

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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:** Rajasekha…; Virendra Kumar…
- **Appellants:** Supriyo Kumar…
- **Respondents:** JVL Agro Industrie…; Assistant…

## Timeline

- **2018-07-25 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against JVL Agro Industries…
- **2019-03-14 — Income Tax…**: The Income Tax Department issued a notice under Section 226(3) of the Income Tax Act,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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