# In the matter of Lanco Babandh Power Limited

> NCLT judgment dated 2024-05-10. Citation: TCN-2024-NCLT-01370. The case involves an application (IA No.1001 of 2023) filed by the liquidator of the Corporate…

- **Court:** NCLT
- **Order date:** 10 May 2024
- **Citation:** TCN-2024-NCLT-01370
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lanco-babandh-power-limited-a9e3ea61

## Summary

### Background

The case involves an application (IA No.1001 of 2023) filed by the liquidator of the Corporate Debtor, Lanco Babandh Power Limited, seeking directions from the NCLT to the Respondents (various entities including Visakhapatnam Port Trust and Customs House) for the release of imported goods lying in their custody. The Corporate Debtor had registered its project for setting up a thermal power plant and imported goods, which are now part of the liquidation estate following a liquidation order passed on 27.11.2019. The Respondents, including customs authorities and port authorities, have not released the goods, citing non-compliance with statutory requirements and asserting claims for unpaid dues.

## Facts

Lanco Babandh Power Limited underwent liquidation, with Sanjay Gupta appointed as the liquidator. The Corporate Debtor had imported goods for a thermal power plant project registered under the Project Import Regulation, 1986. These goods are currently in the custody of various Respondents, including Visakhapatnam Port Trust and Customs House. A liquidation order was passed on 2019-11-27, making the goods part of the liquidation estate. The liquidator sought the release of these goods, but the Respondents refused, citing non-compliance with statutory requirements and claiming unpaid dues. Respondent Nos. 1 and 2 filed claims of Rs.2,65,40,296, while Respondent No. 3 filed a claim of Rs.3,61,61,661, which were admitted by the liquidator. An e-auction took place, and

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## Issues and analysis

### Issue 1: Whether the provisions of the Insolvency and Bankruptcy Code (IBC) prevail over the Customs Act and …

**Ratio:** Section 238 of the IBC contains a non-obstante clause, which gives the IBC overriding

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**Reasoning:** The court reasoned that once the Corporate Debtor's property becomes part of the

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**Interpretation:** Section 238 of the IBC is interpreted to mean that the IBC's provisions take

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**Application:** In this case, the court applied the ratio of Section 238 of the IBC to hold

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** ICICI Ban…
- **Respondents:** Lanco Babandh…; Sri. B. Ratna…

## Timeline

- **2019-11-27 — Liquidation…**: Liquidation order was passed against the Corporate Debtor, making the property part of…
- **2022-02-05 — Claim Adm…**: Claim of Rs.3,61,61,661/- of Customs VPL Integral CFS at Visakhapatnam and Maersk Line…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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