# In the matter of Sunlight Extrusion Private Limited IA 318 of 2021 in CP(IB) No. 261-7-NCLT-AHM-2018

> NCLT judgment dated 2021-11-03. Citation: TCN-2021-NCLT-00597. The case involves an application filed by the Resolution Professional (RP) of Sunlight…

- **Court:** NCLT
- **Order date:** 3 Nov 2021
- **Citation:** TCN-2021-NCLT-00597
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sunlight-extrusion-private-limited-ia-318-of-2021-in-cpib-no-261-7-nclt-ahm-2018-e2378df3

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Sunlight Extrusion Pvt. Ltd. under Section 14 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Section 18(f) and Section 238 of the Code. The RP sought a direction for the Income Tax Department (Respondent No. 1) to refund Rs. 12 lakh, which was recovered from the corporate debtor's bank account in violation of the moratorium imposed by the Adjudicating Authority. The Corporate Debtor was admitted into CIRP on 25-02-2020. The IRP published Form-A on 19-03-2020, with a claim submission deadline of 31-03-2020. Claims were submitted by creditors until 09-06-2020, due to the lockdown. The RP submitted that information about the CIRP initiation was sent to Respondent No. 1 on

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## Facts

The Corporate Debtor, M/s Sunlight Extrusion Pvt. Ltd., was admitted into CIRP on 25-02-2020. Abhishek Nagori was appointed as the IRP. The IRP published Form-A on 19-03-2020, setting the claim submission deadline as 31-03-2020. Due to the lockdown, creditors submitted claims until 09-06-2020. The RP informed the Income Tax Department (Respondent No. 1) about the CIRP initiation on 17-04-2020, with a reminder on 20-05-2020. The Income Tax Department (Respondent No. 1) recovered Rs. 12 lakh from the Corporate Debtor's bank account on 16-03-2020, which was maintained with RBL Bank Limited (Respondent No. 2). The IRP emailed Respondent No. 1 on 13-06-2020, requesting a refund of the recovered amount, citing a violation of Section 14 of the IBC, but received no response.

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## Issues and analysis

### Issue 1: Whether the recovery of Rs. 12 lakh by the Income Tax Department from the Corporate Debtor's …

**Ratio:** Section 14 of the IBC imposes a moratorium on the institution or continuation of suits or

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**Reasoning:** The court reasoned that the moratorium was triggered against the corporate debtor on

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**Interpretation:** Section 14 is interpreted to provide a protective shield to the corporate

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**Application:** In this case, the Income Tax Department's recovery of Rs. 12 lakh from the

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## Parties

- **Judges:** Madan B.…; Ajai Das Me…
- **Appellants:** Abhishek…
- **Respondents:** Sunlight Extrusion…; Income tax…

## Timeline

- **2020-02-25 — CIRP Admi…**: Corporate Debtor…
- **2020-03-16 — Recovery by IT…**: Income Tax Department recovered Rs. 12 lakh…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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