# In the matter of Excel Technovation Pvt. Ltd.

> NCLT judgment dated 2024-05-03. Citation: TCN-2024-NCLT-01458. The application IA No. 85/JPR/2022 was filed by Mr. Prashant Agrawal, the Resolution…

- **Court:** NCLT
- **Order date:** 3 May 2024
- **Citation:** TCN-2024-NCLT-01458
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/excel-technovation-pvt-ltd-7885b681

## Summary

### Background

The application IA No. 85/JPR/2022 was filed by Mr. Prashant Agrawal, the Resolution Professional/Liquidator of M/s Excel Technovation Pvt. Ltd. ('Corporate Debtor'), under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority had admitted an application filed by M/s Balaji Lifestyle Technologies Pvt. Ltd. ('Operational Creditor') under Section 9 of the Code for initiating the Corporate Insolvency Resolution Process ('CIRP') of the Corporate Debtor. Mr. Prashant Agrawal was appointed as the Interim Resolution Professional, later approved as the Resolution Professional by the CoC. Subsequently, a liquidation order was passed on 31.10.2023, and Mr. Agrawal was appointed as the Liquidator. The application seeks the removal of liens/debit

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## Facts

M/s Balaji Lifestyle Technologies Pvt. Ltd., an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s Excel Technovation Pvt. Ltd., the corporate debtor. The CIRP was admitted by the Adjudicating Authority, and Mr. Prashant Agrawal was appointed as the Interim Resolution Professional (IRP), later becoming the Resolution Professional (RP) and subsequently the Liquidator after a liquidation order was passed on 31.10.2023. During the CIRP, it came to the IRP's knowledge that the Income Tax Department had marked a lien on the corporate debtor's bank accounts with ICICI Bank Ltd. The lien was based on a notice dated 10.02.2020, issued under Section 226(3) of the Income Tax Act, 1961, due to outstanding tax demands. The IRP requested the

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## Issues and analysis

### Issue 1: Whether the Income Tax Department's action of freezing the Corporate Debtor's bank accounts during …

**Ratio:** The ratio is that the Insolvency and Bankruptcy Code (IBC) has an overriding effect over

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**Reasoning:** The court reasoned that Section 238 of the IBC explicitly states that the provisions of

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**Interpretation:** This issue involves interpreting the relationship between the IBC and other

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**Application:** In this specific case, the Income Tax Department's action of freezing the

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Prashant A…
- **Respondents:** Excel Technovation…; Assistant…

## Timeline

- **2021-09-30 — Admission of Ap…**: The Adjudicating Authority admitted the application filed by M/s Balaji Lifestyle…
- **2023-10-31 — Liquidation…**: The Adjudicating Authority passed a…

## 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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