The case involves an application filed by the Resolution Professional (RP) of Lanco Vidarbha Thermal Power Limited, a Corporate Debtor undergoing Corporate Insolvency Resolution Process (CIRP). The RP sought to quash letters issued by Customs Department (respondent no.1) invoking bank guarantees furnished by the Corporate Debtor. These bank guarantees were provided to avail exemption from customs duty under the Mega Power Project policy. The RP argued that invoking the bank guarantees during the moratorium period under CIRP is illegal and detrimental to the resolution process. The Customs Department contended that the bank guarantees are unconditional and can be invoked regardless of the moratorium.
Lanco Vidarbha Thermal Power Limited, a Corporate Debtor, is undergoing CIRP. Punjab National Bank filed a petition under Section 7 of the I&B Code against the Corporate Debtor, which was admitted on 03.10.2019. Vijay Kumar Garg was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Corporate Debtor is a Special Purpose Vehicle (SPV) of Lanco Group, setting up a domestic coal-based supercritical Thermal Power Plant. To avail exemption from customs duty under the Mega Power Project policy, the Corporate Debtor furnished bank guarantees to the Customs Department. The Customs Department issued notifications granting exemption from customs duty to specified goods when imported to India, subject to certain
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Punjab National Bank's petition under Section…
Moratorium was…
The case involves an application filed by the Resolution Professional (RP) of Lanco Vidarbha Thermal Power Limited, a Corporate Debtor undergoing Corporate Insolvency Resolution Process (CIRP). The RP sought to quash letters issued by Customs Department (respondent no.1) invoking bank guarantees furnished by the Corporate Debtor. These bank guarantees were provided to avail exemption from customs duty under the Mega Power Project policy. The RP argued that invoking the bank guarantees during the moratorium period under CIRP is illegal and detrimental to the resolution process. The Customs Department contended that the bank guarantees are unconditional and can be invoked regardless of the moratorium.
Lanco Vidarbha Thermal Power Limited, a Corporate Debtor, is undergoing CIRP. Punjab National Bank filed a petition under Section 7 of the I&B Code against the Corporate Debtor, which was admitted on 03.10.2019. Vijay Kumar Garg was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Corporate Debtor is a Special Purpose Vehicle (SPV) of Lanco Group, setting up a domestic coal-based supercritical Thermal Power Plant. To avail exemption from customs duty under the Mega Power Project policy, the Corporate Debtor furnished bank guarantees to the Customs Department. The Customs Department issued notifications granting exemption from customs duty to specified goods when imported to India, subject to certain
…Punjab National Bank's petition under Section…
Moratorium was…