# In the matter of Associate Décor Limited

> NCLT judgment dated 2023-06-28. Citation: TCN-2023-NCLT-02746. The Assistant Commissioner of Commercial Taxes, Bengaluru, filed an application under Section…

- **Court:** NCLT
- **Order date:** 28 Jun 2023
- **Citation:** TCN-2023-NCLT-02746
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/associate-dcor-limited-1114d7ed

## Summary

### Background

The Assistant Commissioner of Commercial Taxes, Bengaluru, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 11 of the NCLT Rules, 2016, seeking several reliefs related to the Corporate Insolvency Resolution Process (CIRP) of Associate Décor Limited. The applicant challenged the Information Memorandum (IM) prepared by the Resolution Professional (RP) and the resolution plan approved by the Committee of Creditors (CoC), primarily concerning the rejection of the applicant's claim for GST dues. The applicant argued that the RP had wrongly rejected their claim based on best judgment assessment orders, while the respondents contended that the claim was disputed, not crystallized, and that the company had already filed

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## Facts

The Corporate Debtor, Associate Decor Ltd., engaged in taxable supplies of goods in Karnataka and was registered under various tax laws, including the Karnataka VAT Act, KGST Act, and Central GST Act, 2017. The company failed to file monthly returns since September 2017, violating Section 39 of the Act. The Assistant Commissioner of Commercial Taxes served a notice under Section 46 of the KGST Act, but the company still did not file returns. The applicant then passed orders under Section 62 of the KGST Act, determining a tax liability of Rs. 84,82,50,692/-. The applicant initiated recovery proceedings, leading the Corporate Debtor to file a Writ Petition, which was dismissed. The company defaulted on payments to other parties, leading to the initiation of CIRP under CP

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## Issues and analysis

### Issue 1: Whether the Information Memorandum passed by the Respondent No.1 in the present CIRP Proceedings is …

**Ratio:** The principle of res judicata prevents the same issue from being adjudicated again if it

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**Reasoning:** The court noted that the applicant had previously filed IA No.134 of 2020, raising

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**Interpretation:** The principle of res judicata ensures finality in legal proceedings. The IBC

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**Application:** The court applied the principle of res judicata to the facts of the case,

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Assistant…
- **Respondents:** Associate Décor…; Alok Kailash…

## Timeline

- **2017-09-01 — Non-filing of GST…**: The Corporate Debtor did not file its monthly returns since September 2017, contravening…
- **2018-10-01 — Assessment…**: Assessment Orders were passed between…

## 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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