# In the matter of Aristo Texcon Private Limited

> NCLT judgment dated 2023-06-05. Citation: TCN-2023-NCLT-03085. The case involves two applications, I.A No. 549/KB/2022 and I.A No. 792/KB/2022, filed in C.P…

- **Court:** NCLT
- **Order date:** 5 Jun 2023
- **Citation:** TCN-2023-NCLT-03085
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aristo-texcon-private-limited-cf6bc38f

## Summary

### Background

The case involves two applications, I.A No. 549/KB/2022 and I.A No. 792/KB/2022, filed in C.P (I.B) No. 570/KB/2018 under Section 60(5) of the Insolvency & Bankruptcy Code, 2016. The applications were filed by Jagannath Financial Advisory Private Limited, the Successful Resolution Applicant (SRA), against Kolkata Municipal Corporation and Principal Commissioner of Income Tax & Ors. The SRA sought directions to extinguish property tax dues and withdraw notices issued under the Income Tax Act against the Corporate Debtor, Aristo Texcon Private Limited, for the period prior to August 20, 2019, the date of approval of the resolution plan.

## Facts

Aristo Texcon Private Limited underwent corporate insolvency resolution process, and Jagannath Financial Advisory Private Limited was the Successful Resolution Applicant (SRA). The resolution plan was approved on August 20, 2019. After the approval, Kolkata Municipal Corporation (KMC) continued to levy property tax/municipal tax on the Corporate Debtor's properties, with dues totaling Rs. 19,83,677/- since 2008-2009, along with interest of Rs. 8,82,577.22/-. The Corporate Debtor requested KMC to extinguish all property tax obligations prior to August 20, 2019, as per the approved resolution plan. Similarly, the Income Tax Department issued notices under various sections of the Income Tax Act, despite the approval of the resolution plan. The SRA filed I.A No.

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## Issues and analysis

### Issue 1: Whether the approved resolution plan under the Insolvency and Bankruptcy Code, 2016, extinguishes …

**Ratio:** The ratio is based on Section 31 of the Insolvency & Bankruptcy Code, 2016, which

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**Reasoning:** The court reasoned that the main concept behind the resolution of insolvency under the

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**Interpretation:** The interpretation is that once a resolution plan is duly approved by the

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**Application:** In this case, the court applied the ratio and reasoning to direct the Kolkata

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** Jagannath…
- **Respondents:** Aristo Texcon…; Kolkata Municipal…
- **Advocates:** Patita Paban…; Rishav Ba…; +8 more

## Timeline

- **2018-01-01 — C.P (I.B) No.…**: Corporate Insolvency Resolution Process…
- **2019-08-20 — Approval of Resolution…**: Resolution plan submitted by Jagannath Financial Advisory Private Limited approved by the…

## 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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