# In the matter of Satra Property Developers Private Limited

> NCLT judgment dated 2023-10-26. Citation: TCN-2023-NCLT-01018. The case involves an application (I.A. 1870/2021) filed by the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 26 Oct 2023
- **Citation:** TCN-2023-NCLT-01018
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/satra-property-developers-private-limited-adb0cf78

## Summary

### Background

The case involves an application (I.A. 1870/2021) filed by the Resolution Professional (RP) of Satra Property Developers Pvt. Ltd. (Corporate Debtor) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking a refund of an amount due as per an Assessment Order, along with interest under Section 244A of the Income Tax Act, 1961, from the Assistant Commissioner of Income Tax Range-3(1). The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on August 10, 2020. The RP was appointed and a public announcement was made. During the assessment proceedings for AY 2018-19, it was submitted that the Corporate Debtor was undergoing CIRP. An Assessment Order was passed on April 19, 2021, determining a refund. However, the refund was

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## Facts

The Resolution Professional (RP) of Satra Property Developers Pvt. Ltd. filed an application seeking a refund of an amount due as per an Assessment Order, along with interest. The Corporate Debtor was admitted into CIRP on August 10, 2020. The RP was appointed and a public announcement was made. During assessment proceedings for AY 2018-19, it was submitted that the Corporate Debtor was undergoing CIRP. An Assessment Order was passed on April 19, 2021, determining a refund of Rs. 1,50,49,868. A notice was issued to the Corporate Debtor proposing to adjust the refund against outstanding demands of past years. The Corporate Debtor filed a response stating that since the company was undergoing CIRP and a moratorium was in place, no demands could be recovered. Despite

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## Issues and analysis

### Issue 1: Whether the Income Tax Department's action of adjusting the refund against outstanding demands …

**Ratio:** Section 14 of the Insolvency and Bankruptcy Code (IBC) explicitly prohibits any action to

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**Reasoning:** The court reasoned that the moratorium, which commenced on August 10, 2020, was in force

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**Interpretation:** Section 14 of the IBC is interpreted to provide a standstill period during

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**Application:** The court applied the ratio to the facts by holding that the appropriation of

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## Parties

- **Judges:** Prabhat…; V. G. Bisht…
- **Appellants:** Jayesh Sang…
- **Respondents:** Satra Property…; The Assistant…
- **Advocates:** Nausher…; Chintan G…

## Timeline

- **2019-01-01 — Company Petiti…**: C.P.(IB) No. 4464/MB/201…
- **2020-08-10 — CIRP Comm…**: The Company Petition 4464/IB/MB/2019 was admitted by the Tribunal, admitting the…

## 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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