This case involves an application seeking a stay on an order dated 18.06.2018 passed by Respondent No. 2 and a recovery notice issued on 12.09.2018. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) vide order dated 17.08.2017. A moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016 (IBC) came into operation. Despite the admission of the Corporate Debtor into CIRP, proceedings under GST laws continued. The Adjudicating Authority passed an order of liquidation on 11.05.2018, and a liquidator was appointed. The GST Authority passed an order of assessment on 18.06.2018 and issued a recovery notice on 12.09.2018.
Bhavarlal Mangilal Jain and Ajay Kumar Gupta (Applicants) filed an application seeking a stay on an order dated 18.06.2018 and a recovery notice issued on 12.09.2018 by the GST Authority. The Corporate Debtor, Metal Link Alloys Ltd., was admitted into CIRP on 17.08.2017, leading to a moratorium under Section 14 of IBC. Despite the CIRP, GST proceedings continued. The Adjudicating Authority ordered liquidation of the Corporate Debtor on 11.05.2018, and a liquidator was appointed. The GST Authority issued an assessment order on 18.06.2018 and a recovery notice on 12.09.2018. The applicants argued that the GST proceedings violated the IBC. The court noted that the GST order was issued after the liquidation order. The legal position is that the moratorium ends upon
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This case involves an application seeking a stay on an order dated 18.06.2018 passed by Respondent No. 2 and a recovery notice issued on 12.09.2018. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) vide order dated 17.08.2017. A moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016 (IBC) came into operation. Despite the admission of the Corporate Debtor into CIRP, proceedings under GST laws continued. The Adjudicating Authority passed an order of liquidation on 11.05.2018, and a liquidator was appointed. The GST Authority passed an order of assessment on 18.06.2018 and issued a recovery notice on 12.09.2018.
Bhavarlal Mangilal Jain and Ajay Kumar Gupta (Applicants) filed an application seeking a stay on an order dated 18.06.2018 and a recovery notice issued on 12.09.2018 by the GST Authority. The Corporate Debtor, Metal Link Alloys Ltd., was admitted into CIRP on 17.08.2017, leading to a moratorium under Section 14 of IBC. Despite the CIRP, GST proceedings continued. The Adjudicating Authority ordered liquidation of the Corporate Debtor on 11.05.2018, and a liquidator was appointed. The GST Authority issued an assessment order on 18.06.2018 and a recovery notice on 12.09.2018. The applicants argued that the GST proceedings violated the IBC. The court noted that the GST order was issued after the liquidation order. The legal position is that the moratorium ends upon
…Corporate Debtor…
Adjudicating Authority…