# In the matter of Senthil Paper and Board Private Limited IA(IBC)-566(CHE)-2021 in MA-604-2018 in CP-612-IB-2017

> NCLT judgment dated 2022-11-30. Citation: TCN-2022-NCLT-00284. The case involves an application (IA(IBC)/566(CHE)/2021) filed by the Liquidator of Senthil…

- **Court:** NCLT
- **Order date:** 30 Nov 2022
- **Citation:** TCN-2022-NCLT-00284
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/senthil-paper-and-board-private-limited-iaibc-566che-2021-in-ma-604-2018-in-cp-6-b26a3fb1

## Summary

### Background

The case involves an application (IA(IBC)/566(CHE)/2021) filed by the Liquidator of Senthil Papers and Boards Private Limited, the Corporate Debtor, seeking to set aside an order issued by the Assistant Commissioner of Customs. The Customs order, dated 12.03.2021, was issued against the Corporate Debtor under Sections 28, 28AA, 114AB, and 142(1) of the Customs Act, 1962, demanding payment of customs duties and penalties. The Corporate Debtor was undergoing liquidation, initiated on 14.02.2019, after CIRP commenced on 14.11.2017. The applicant argued that the Customs order violated Sections 14 and 33(5) of the Insolvency and Bankruptcy Code (IBC), 2016, which impose a moratorium on recovery proceedings during liquidation.

## Facts

Senthil Papers and Boards Private Limited (Corporate Debtor) underwent Corporate Insolvency Resolution Process (CIRP) initiated on 14.11.2017. A liquidation order was passed on 14.02.2019, appointing the applicant, Mr.P. Eswaramoorthy, as the Liquidator. The Corporate Debtor had imported 14 Used Paper Board Machinery (UPB Machinery) and availed duty exemptions under the Export Promotion Capital Goods (EPCG) Scheme. The Export Obligation Period (EOP) for the licenses expired, prompting the Assistant Commissioner of Customs (Respondent) to issue notices on 14.12.2019 to confirm EOP extension. The Respondent was informed about the CIRP and liquidation initiation on 16.12.2019. Despite this, the Respondent issued show cause notices dated 16.06.2020 and 18.06.2020,

…

## Issues and analysis

### Issue 1: Whether the Customs Authorities have the power to initiate recovery proceedings against a Corporate …

**Ratio:** The ratio is based on the principle that once a moratorium is imposed under Sections 14

…

**Reasoning:** The court reasoned that Section 33(5) of the IBC prohibits the institution of any suit or

…

**Interpretation:** The interpretation is that the IBC's moratorium provisions are designed to

…

**Application:** In this case, the Assistant Commissioner of Customs issued an order demanding

…

## Parties

- **Judges:** Dr.Deepti…; SAMEER…
- **Appellants:** MR.P. ESWARAMOORTH…
- **Respondents:** SENTHIL PAPER…; The Assistant…

## Timeline

- **2017-11-14 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated for Senthil Papers and Boards…
- **2019-02-14 — Liquidation…**: Liquidation order passed for Senthil Papers and Boards Private Limited; Mr.P.…

## 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/senthil-paper-and-board-private-limited-iaibc-566che-2021-in-ma-604-2018-in-cp-6-b26a3fb1