# In the matter of SR Foils and Tissue LImited (IB)-144(PB)-2017

> NCLT judgment dated 2019-02-06. Citation: TCN-2019-NCLT-04988. This case involves an application filed by the Resolution Professional under section 14 read…

- **Court:** NCLT
- **Order date:** 6 Feb 2019
- **Citation:** TCN-2019-NCLT-04988
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sr-foils-and-tissue-limited-ib-144pb-2017-f9497c46

## Summary

### Background

This case involves an application filed by the Resolution Professional under section 14 read with section 17(1)(d), 18 and 20 of the Insolvency & Bankruptcy Code and Rule 15 of the NCLT Rules, 2016, seeking a direction to the Deputy Commissioner of Income Tax to lift the lien marked on fixed deposit receipts (FDRs) held in ICICI Bank Ltd. The Income Tax Department failed to file a reply, maintaining that the Insolvency & Bankruptcy Code, 2016 cannot override the Income Tax Act, 1961.

## Facts

The Resolution Professional filed an application seeking the lifting of a lien marked on fixed deposit receipts (FDRs) held in ICICI Bank Ltd. The lien was imposed by the Deputy Commissioner of Income Tax. The Income Tax Department argued that the Insolvency & Bankruptcy Code (IBC), 2016, cannot override the Income Tax Act, 1961. The FDRs in question are: 629314066591 (Rs. 2,592,550), 629314066679 (Rs. 641,607), and 629314066844 (Rs. 1,603,868), totaling Rs. 48,38,025. The Income Tax Department's stance was evident from a letter dated 2017-12-12. The Supreme Court in Pr. Commissioner of Income Tax v. Monnet Ispat and Energy Ltd. held that Section 238 of the IBC overrides any inconsistent provisions in other enactments, including the Income Tax Act. Dena Bank v.

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## Issues and analysis

### Issue 1: Whether the provisions of the Insolvency & Bankruptcy Code, 2016, override the Income Tax Act, …

**Ratio:** Section 238 of the Insolvency and Bankruptcy Code, 2016, contains a non-obstante clause,

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**Reasoning:** The court relied on the Supreme Court's decision in Pr. Commissioner of Income Tax v.

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**Interpretation:** The interpretation of Section 238 is that it provides the IBC with precedence

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**Application:** In this case, the application of Section 238 meant that the IBC's provisions

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## Parties

- **Judges:** M. M. K…; Pradeep R.…
- **Appellants:** ICICI Bank…
- **Respondents:** SR Foils and…
- **Advocates:** Abhishek…; Tushar…

## Timeline

- **2017-12-12 — Income Tax Department's…**: Assistant Commissioner of Income Tax sent a letter stating that the Insolvency &…
- **2018-08-10 — Supreme Court…**: Supreme Court decided Pr. Commissioner of Income Tax v. Monnet Ispat and Energy Ltd.,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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