# In the matter of Metal Link Alloys Ltd. & Ors. IA 361 of 2018 in CP (IB) 67 of 2017

> NCLT judgment dated 2020-11-26. Citation: TCN-2020-NCLT-00204. This case involves an application seeking a stay on an order dated 18.06.2018 passed by…

- **Court:** NCLT
- **Order date:** 26 Nov 2020
- **Citation:** TCN-2020-NCLT-00204
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/metal-link-alloys-ltd-ors-ia-361-of-2018-in-cp-ib-67-of-2017-1be23ac3

## Summary

### Background

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.

## Facts

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

…

## Issues and analysis

### Issue 1: Whether the proceedings under GST laws, taken after the Corporate Debtor was admitted into CIRP and …

**Ratio:** The moratorium under Section 14 of the IBC comes to an end upon the passing of the order

…

**Reasoning:** The court reasoned that the impugned order was passed subsequent to the order of

…

**Interpretation:** Section 14 of the IBC imposes a moratorium on legal proceedings against a

…

**Application:** In this case, the GST proceedings and the issuance of the order and recovery

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Bhavarlal…
- **Respondents:** Metal Link Alloys…; 2nd Floor, Hani's…
- **Advocates:** Arjun S…; Mayur Jug…; +1 more

## Timeline

- **2017-08-17 — Admission in…**: Corporate Debtor admitted into Corporate…
- **2018-05-11 — Liquidation…**: Adjudicating Authority passed the order of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/metal-link-alloys-ltd-ors-ia-361-of-2018-in-cp-ib-67-of-2017-1be23ac3