# In the matter of Prius Commercial Projects Pvt. Ltd. CA 776-C-III-ND-19 in IB-1404-ND-2019

> NCLT judgment dated 2020-01-03. Citation: TCN-2020-NCLT-02539. The case involves an application filed in the National Company Law Tribunal (NCLT) concerning…

- **Court:** NCLT
- **Order date:** 3 Jan 2020
- **Citation:** TCN-2020-NCLT-02539
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prius-commercial-projects-pvt-ltd-ca-776-c-iii-nd-19-in-ib-1404-nd-2019-91bfde36

## Summary

### Background

The case involves an application filed in the National Company Law Tribunal (NCLT) concerning the Corporate Insolvency Resolution Process (CIRP) of Prius Commercial Project Pvt. Ltd. The Resolution Professional (RP) sought a direction to revoke the cancellation of the Corporate Debtor's GST registration and reinstate it, allowing the filing of tax returns. The CIRP was initiated on August 9, 2019, and the GST registration was cancelled on October 15, 2019, during the moratorium period.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Prius Commercial Project (P) Limited on August 9, 2019. The Assistant Commissioner, Central Goods and Service Tax (ITO), New Delhi, cancelled the GST registration of Prius Commercial Project (P) Limited on October 15, 2019. This cancellation occurred during the moratorium period declared under Section 14 of the IBC, 2016. The Resolution Professional (RP) for Prius Commercial Project (P) Limited, Mr. Mahender Kumar Khandelwal, filed an application seeking the revocation of the GST cancellation order. The RP argued that the cancellation prevented the Corporate Debtor from filing GST returns, adversely affecting the CIRP. The Assistant Commissioner submitted that the Corporate Debtor must file for

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## Issues and analysis

### Issue 1: Whether the cancellation of the GST registration of the Corporate Debtor during the moratorium …

**Ratio:** Section 14 of the Insolvency and Bankruptcy Code (IBC), 2016, imposes a moratorium during

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**Reasoning:** The NCLT reasoned that the cancellation of the GST registration during the moratorium

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**Interpretation:** The moratorium under Section 14 of the IBC is intended to provide a standstill

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**Application:** In this case, the cancellation of the GST registration directly impacted the

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## Parties

- **Judges:** Ch. Mohd Sharief…; K.K. V…
- **Appellants:** Mahender Kumar…
- **Respondents:** Prius Commercial…; The Assistant…
- **Advocates:** Abhishek…; Akhairaj…

## Timeline

- **2019-08-09 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Prius Commercial Project…
- **2019-10-15 — GST Registration…**: GST registration of Prius Commercial Project (P) Limited cancelled by the Assistant…

## 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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