# In the matter of MSA Developers Private Limited

> NCLT judgment dated 2023-10-13. Citation: TCN-2023-NCLT-01212. The Deputy Commissioner of Income Tax filed an application under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 13 Oct 2023
- **Citation:** TCN-2023-NCLT-01212
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/msa-developers-private-limited-5b44a22d

## Summary

### Background

The Deputy Commissioner of Income Tax filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking acceptance of a claim rejected by the Interim Resolution Professional (IRP). The claim pertained to statutory dues for Assessment Years 2014-15 to 2017-18, amounting to Rs. 119,17,91,261/-, which the applicant contended the Corporate Debtor owed. The IRP rejected the claim as time-barred, citing delays in filing after the public announcement and the expiration of the extended period under IBBI regulations. The Resolution Professional argued that the Income Tax Authority was aware of the CIRP and the resolution plan had been approved by the Committee of Creditors (CoC).

## Facts

A survey operation under section 133(A) of the Income Tax Act, 1961 was conducted on 03.08.2016 on MSA Developers & Others. The Corporate Debtor's case was selected under "CASS" for scrutiny assessment. Notices under section 143(2) of the Income Tax Act, 1961 were issued on 31.03.2017 and 09.08.2018. Assessment proceedings for A.Y. 2016-17 were completed on 13.08.2019, and a demand notice for Rs.45,52,43,910/- was served. CIRP was initiated under Section 7 of the IBC, admitted on 11.10.2019. The RP issued a public announcement. The Applicant filed a claim on 04.02.2020 for A.Y. 2016-17. Assessment proceedings for A.Y. 2014-15, 2015-16, and 2016-17 were re-opened on 28.03.2021. Assessment for A.Y. 2017-18 was completed on 19.07.2021, and a demand notice

…

## Issues and analysis

### Issue 1: Whether the claim filed by the Deputy Commissioner of Income Tax should be admitted despite the …

**Ratio:** Once a resolution plan is duly approved by the Adjudicating Authority under subsection

…

**Reasoning:** The court reasoned that allowing claims after the approval of the resolution plan would

…

**Interpretation:** This interpretation emphasizes the finality of the resolution plan and the need

…

**Application:** In this case, the resolution plan had already been approved by the CoC. The

…

## Parties

- **Judges:** SHRI. BACHU…; RAHUL BHA…
- **Appellants:** RAVINDER AGGARWAL…
- **Respondents:** MSA Developers…; M/s. MSA Developer…

## Timeline

- **2016-08-03 — Survey Ope…**: A survey operation under section 133(A) of the Income Tax Act, 1961 was conducted on MSA…
- **2017-03-31 — Notice under Income Tax…**: Notices under section 143(2) of the Income Tax…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/msa-developers-private-limited-5b44a22d