# 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-00192. 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-00192
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jvl-agro-industries-ltd-ia-no-131-2021-in-cp-no-223-ald-2018-85d0bf74

## 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, seeking directions to defreeze the corporate debtor's current account and release the funds held within. The Income Tax Department had issued a notice under Section 226(3) of the Income Tax Act, 1961, to Punjab National Bank (Respondent No. 2) for payment of dues from the corporate debtor, leading to the freezing of the account. The CIRP was initiated on 25.07.2018, and a liquidator was appointed after no resolution plan was approved.

## Facts

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), later replaced by Mr. Supriyo Kumar Chaudhuri as the Resolution Professional (RP). As no resolution plan was approved, the Adjudicating Authority ordered the liquidation of the Corporate Debtor on 2020-08-19, and the RP was appointed as the liquidator. The Corporate Debtor maintained a current account with Punjab National Bank (Respondent No. 2), holding Rs. 41,50,749,138/-. The Assistant Commissioner of Income Tax (Respondent No. 1) issued a notice on 2019-03-14 under Section 226(3) of the Income Tax Act, 1961, to Respondent No. 2, demanding payment of Rs. 1,97,32,200/-. This

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## Issues and analysis

### Issue 1: Whether the bank account of the corporate debtor was rightfully frozen by Punjab National Bank …

**Ratio:** The Income Tax Department's notice under Section 226(3) of the Income Tax Act, 1961, did

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**Reasoning:** The court reasoned that the notice issued by the Income Tax Department did not explicitly

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**Interpretation:** Section 226(3) of the Income Tax Act, 1961, allows the Income Tax Department to

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**Application:** In this case, the Income Tax Department's notice did not explicitly direct the

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## Parties

- **Judges:** SH. RAJASEKHAR…; SH. VIRENDRA…
- **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…**: Assistant Commissioner of Income Tax issued a notice under Section 226(3) of the Income…

## 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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