# In the matter of Ruchi Soya Industries Limited IA. No. 863,1273 & 1809-2021 in MA No. 1721-2019  In CP(IB)No. 1371 & 1372-2017

> NCLT judgment dated 2022-06-27. Citation: TCN-2022-NCLT-02040. The case involves an application filed under section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Jun 2022
- **Citation:** TCN-2022-NCLT-02040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ruchi-soya-industries-limited-ia-no-8631273-1809-2021-in-ma-no-1721-2019-in-cpib-8636012b

## Summary

### Background

The case involves an application filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016, by Ruchi Soya Industries Limited, seeking to quash notices issued by the Assistant Commissioner of Income Tax for assessment years prior to the approval of the resolution plan. The Corporate Insolvency Resolution Process (CIRP) was initiated on December 8, 2017, and a resolution plan was approved on July 24, 2019, which was later upheld by the NCLAT on December 9, 2019. The applicant contends that the impugned notices relate to a period before the resolution plan's approval, and all claims prior to that date should be extinguished.

## Facts

The Corporate Insolvency Resolution Process (CIRP) for Ruchi Soya Industries Limited was initiated on December 8, 2017. A public notice was issued on December 21, 2017, inviting claims. The Deputy Commissioner of Income Tax submitted a proof of claim on January 11, 2019, for amounts based on demand notices issued under Section 156 of the IT Act for assessment years 2011-2012, 2012-2013, and 2015-2016, totaling Rs. 350.37 crores. The Resolution Professional (RP) verified the claim but valued it at Re.1/- due to the authority not being a creditor in the books of the applicant and the claim being disputed. The Patanjali Consortium submitted a resolution plan on April 26, 2019, proposing a payment of Rs.25 crores against the verified amount of Rs.44,96,37,777/- for

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## Issues and analysis

### Issue 1: Whether the notices issued by the Assistant Commissioner of Income Tax for assessment years prior …

**Ratio:** The legal principle applied is that once a resolution plan is duly approved by the

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**Reasoning:** The tribunal reasoned that the Supreme Court's judgment in Ghanshyam Mishra & Ors. v.

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**Interpretation:** The interpretation of Section 31 of the IBC, as clarified by the Supreme Court,

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**Application:** In this specific case, the notices issued by the Income Tax Department related

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## Parties

- **Judges:** P.N. Deshmukh…; K.K. V…
- **Respondents:** Ruchi Soya…; Assistant…

## Timeline

- **2017-12-08 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated for Ruchi Soya Industries…
- **2017-12-21 — Public N…**: Public notice issued for…

## 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)

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