# In the matter of Lanco Babandh Power Limited

> NCLT judgment dated 2024-05-09. Citation: TCN-2024-NCLT-01383. This case involves a contempt petition filed by the liquidator of Lanco Babandh Power Limited…

- **Court:** NCLT
- **Order date:** 9 May 2024
- **Citation:** TCN-2024-NCLT-01383
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lanco-babandh-power-limited-3c580557

## Summary

### Background

This case involves a contempt petition filed by the liquidator of Lanco Babandh Power Limited against the Deputy Commissioner of Paradeep Customs Division and the Senior Assistant Traffic Manager of Paradeep Port Authority for allegedly violating an order dated 29.03.2023. The order directed the respondents to release goods belonging to the Corporate Debtor without insisting on certain documents or payment of customs duty. The Corporate Debtor was undergoing liquidation, and the liquidator was responsible for taking custody and controlling the assets. The respondents failed to release the goods, leading to the contempt petition.

## Facts

Lanco Babandh Power Limited was admitted into Corporate Insolvency Resolution Process (CIRP) on 29.08.2018, and subsequently, a liquidation order was passed on 27.11.2019. The Corporate Debtor had imported goods and machinery for setting up a thermal power plant in Odisha, filing 45 Bills of Entry between July 2011 and April 2016. Due to non-payment of customs duty, the goods remained at Paradeep Port under the custody of the Respondents. The liquidator requested the release of the goods, citing his responsibility to take custody of the Corporate Debtor's assets. The Respondents filed claims for pending customs duty. IA No. 939/2020 was allowed on 29.03.2023, directing the Respondents to release the goods. Despite this order and subsequent requests, the Respondents did

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## Issues and analysis

### Issue 1: Whether the Respondents wilfully disobeyed the order dated 29.03.2023 passed in IA No.939/2020, …

**Ratio:** Civil contempt requires wilful disobedience of a court order. The element of willingness

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**Reasoning:** The court considered the actions of the Respondents, particularly their failure to

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**Interpretation:** The court interpreted the Contempt of Courts Act, 1971, specifically Section

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**Application:** The court applied the ratio to the facts, finding that Respondents No. 2 and 3

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## Parties

- **Judges:** SHRI. RAJEEV…; SHRI. SANJA…
- **Appellants:** Sanjay…
- **Respondents:** Lanco Babandh…; Tarun Kumar…

## Timeline

- **2018-08-29 — CIRP Init…**: Lanco Babandh Power Limited was put into…
- **2019-11-27 — Liquidation…**: Order for Liquidation…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 36(3) — Liquidation estate](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-36)

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