# In the matter of RL Logistics Private Limited

> NCLT judgment dated 2023-12-13. Citation: TCN-2023-NCLT-00269. The case involves an application filed under Section 60(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Dec 2023
- **Citation:** TCN-2023-NCLT-00269
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rl-logistics-private-limited-08464ca4

## Summary

### Background

The case involves an application filed under Section 60(2) of the Insolvency and Bankruptcy Code, 2016, concerning RL Logistics Private Limited, where Mr. A. Arumugam is the Resolution Professional. The application seeks to recover dues from Mahindra & Mahindra Ltd (1st Respondent) and to refund amounts recovered by the Office of the Principal Commissioner of GST & Central Excise (2nd Respondent) during the CIRP period. The Corporate Debtor, RL Logistics, was admitted into CIRP on 27.02.2019. The Resolution Professional argues that Mahindra & Mahindra owes Rs. 2,29,80,230 for services availed between April 2017 and March 2018. The GST department recovered Rs. 79,87,143 from Mahindra & Mahindra on behalf of RL Logistics after the CIRP commencement date.

## Facts

RL Logistics Private Limited (Corporate Debtor) was admitted into CIRP on 27.02.2019 following an application by a financial creditor. Mr. A. Arumugam was appointed as the Resolution Professional (RP). Mahindra & Mahindra Ltd (1st Respondent) allegedly owed Rs. 2,29,80,230 to RL Logistics for services provided between April 2017 and March 2018. The 1st Respondent claims that RL Logistics owes them money and that they had paid an advance of Rs. 73,81,600. The Office of the Principal Commissioner of GST & Central Excise (2nd Respondent) issued a garnishee notice to Mahindra & Mahindra and recovered Rs. 79,87,143 from them on 05.08.2019 towards RL Logistics' GST dues. The RP argues that this recovery occurred during the moratorium period under Section 14 of

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## Issues and analysis

### Issue 1: Whether the recovery of Rs.79,87,143 by the Office of the Principal Commissioner of GST & …

**Ratio:** Section 14(1) of the IBC imposes a moratorium on the institution or continuation of suits

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**Reasoning:** The court reasoned that the garnishee notice was issued and the amount was recovered by

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**Interpretation:** Section 14 of the IBC is interpreted to mean that once a moratorium is in

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**Application:** In this case, the GST department's recovery of Rs.79,87,143 from Mahindra &

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Mr.A.Aru…
- **Respondents:** R.L. Logistics…; M/s. Mahindra &…
- **Advocates:** Mr.K.Mo…; Ms.Prapti…; +1 more

## Timeline

- **2019-02-27 — Initiation…**: RL Logistics Private…
- **2019-06-28 — Garnishee…**: GST Department issued a garnishee…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(2) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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