# In the matter of Aarcity Infrastructure Pvt. Ltd. IB-2185(ND)-2019

> NCLT judgment dated 2022-11-17. Citation: TCN-2022-NCLT-00420. The case involves M/s. Sun Control Systems (Partnership Firm) as the petitioner and M/s.…

- **Court:** NCLT
- **Order date:** 17 Nov 2022
- **Citation:** TCN-2022-NCLT-00420
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aarcity-infrastructure-pvt-ltd-ib-2185nd-2019-9e7bdb2e

## Summary

### Background

The case involves M/s. Sun Control Systems (Partnership Firm) as the petitioner and M/s. Aarcity Infrastructure Pvt. Ltd. as the respondent. The matter pertains to Section 9 of the IB Code, 2016. The issue regarding the payment of GST was raised.

## Facts

M/s. Sun Control Systems (Partnership Firm) initiated a case against M/s. Aarcity Infrastructure Pvt. Ltd. under Section 9 of the IB Code, 2016. During the proceedings, a dispute arose regarding the payment of Goods and Services Tax (GST) to the Resolution Professional. The tribunal noted that GST was already being paid at the time of meeting expenses. The Resolution Professional was directed to accept a total sum of Rs. 6,00,000/-, inclusive of GST, as the appropriate and proper amount.

## Issues and analysis

### Issue 1: Whether the Resolution Professional is entitled to a separate GST payment in addition to their fees …

**Ratio:** The ratio is that if GST is already included in the expenses, there is no need to

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**Reasoning:** The tribunal reasoned that since GST is already paid at the time of meeting the expenses,

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**Interpretation:** The interpretation is that the Resolution Professional's fees and expenses

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**Application:** The tribunal applied this reasoning to the specific facts by clarifying that

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** M/s. Sun Control…
- **Respondents:** M/s. Aarcity…

## Timeline

- **2022-11-17 — Order Del…**: Order delivered on 17.11.2022 regarding GST…
- **2022-11-29 — Next Hearin…**: The matter is listed along with all the IAs (IA/4647/2022, IA/4033/2022 and IA/1479/2022)…

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