# In the matter of JPM Exports Private Limited

> NCLT judgment dated 2024-05-15. Citation: TCN-2024-NCLT-01344. The Liquidator filed an application under Section 35(1)(n) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 15 May 2024
- **Citation:** TCN-2024-NCLT-01344
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jpm-exports-private-limited-4e72e330

## Summary

### Background

The Liquidator filed an application under Section 35(1)(n) of the Insolvency and Bankruptcy Code, 2016, seeking the removal of a garnishee order, declaration of a debit transaction as void, and reversal of the debit transaction with interest into the liquidation account. This application arose because the Directorate of Commercial Taxes issued a garnishee order against the corporate debtor's account during liquidation, leading to the dishonour of cheques issued by the Liquidator and subsequent debit of funds by YES Bank.

## Facts

Hempragati Vyapaar Private Limited, a financial creditor, filed a petition under section 7 of the Insolvency and Bankruptcy Code, 2016, against JPM Exports Private Limited, the corporate debtor. This petition led to the initiation of the Corporate Insolvency Resolution Process ( CIRP ) against JPM Exports Private Limited, which was admitted by the Adjudicating Authority on January 27, 2021. Subsequently, an order of liquidation was passed against the corporate debtor on December 21, 2021, and Avishek Gupta was appointed as the Liquidator. Following the public announcement for claims, the Liquidator received a claim from the Commercial Tax Department for Rs.5,77,166/-, which was admitted in full. Despite this, the Directorate of Commercial Taxes, West Bengal, sent a

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## Issues and analysis

### Issue 1: Whether the garnishee order issued under section 16 of the West Bengal State Tax on Professions, …

**Ratio:** The garnishee order issued under section 16 of the West Bengal State Tax on Professions,

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**Reasoning:** The NCLT noted that the liquidation process of the Corporate Debtor was initiated on

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**Interpretation:** The NCLT interpreted **section 14** and **section 33(5)** of the Insolvency and

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**Application:** The Assistant Commissioner of Revenue acted in contravention of the Code by

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** Avishek…
- **Respondents:** JPM Exports…; Assistant…; +2 more
- **Advocates:** Udit Ag…; For the Liquidator…; +1 more

## Timeline

- **January 27, 2021 — CIRP Admi…**: The Adjudicating Authority admitted the Company Petition filed under section 7 of the…
- **December 21, 2021 — Liquidation…**: An order of liquidation of the Corporate Debtor was passed, and Avishek Gupta was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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