# In the matter of Supreme Tex Mart Limited IA No.580-2021
in CP (IB) No.67-Chd-Pb-2017

> NCLT judgment dated 2022-02-07. Citation: TCN-2022-NCLT-04233. The case involves an application (IA No. 580/2021) filed by the Applicant-Liquidator seeking a…

- **Court:** NCLT
- **Order date:** 7 Feb 2022
- **Citation:** TCN-2022-NCLT-04233
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/supreme-tex-mart-limited-ia-no580-2021-in-cp-ib-no67-chd-pb-2017-aa51df4e

## Summary

### Background

The case involves an application (IA No. 580/2021) filed by the Applicant-Liquidator seeking a stay on the operation and effect of a notice issued by the Excise and Taxation Commissioner, Ludhiana, regarding the blocking of Input Tax Credit of the Corporate Debtor, M/s Supreme Tex Mart Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated by Allahabad Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted on 29.09.2017, and a moratorium was declared. After the expiration of the CIRP period and its extension, liquidation was ordered on 08.08.2018 as no resolution plan was approved. The applicant was appointed as the Liquidator, replacing the previous liquidator. The respondent issued assessment notices for the years

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of M/s Supreme Tex Mart Limited was initiated by Allahabad Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted on 2017-09-29, and a moratorium was declared under Section 14. After the initial 180-day period and a subsequent 90-day extension, liquidation was ordered on 2018-08-08 because no resolution plan was approved. Sh. Ravinder Kumar Goel was appointed as the Liquidator, replacing Mr. Bhupesh Gupta. The Liquidator discovered that the Corporate Debtor had an available GST input tax credit of Rs. 11,01,38,076/-. The Excise and Taxation Commissioner, Ludhiana, sent assessment notices for the years 2014-15, 2015-16, and 2016-17 to an old address of the Corporate Debtor. The

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## Issues and analysis

### Issue 1: Whether the action of the Excise and Taxation Commissioner, Ludhiana, in blocking the Input Tax …

**Ratio:** Section 238 of the IBC has an overriding effect over other laws. Clarificatory Circular

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**Reasoning:** The court reasoned that the respondent's actions were contrary to the provisions of the

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**Interpretation:** Section 238 of the IBC is interpreted to mean that the provisions of the IBC

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**Application:** The court applied the ratio by stating that the respondent should have

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Sh. Ravinder…
- **Respondents:** M/s Supreme Tex…; Excise and…

## Timeline

- **2017-09-29 — CIRP Admi…**: The application of Financial Creditor (Allahabad Bank) was admitted by the Tribunal, and…
- **2018-03-28 — CIRP Period…**: The initial period of…

## 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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